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Share-Based Awards
 9 Months Ended
Sep. 28, 2012
Share-Based Awards Abstract  
Share-Based Awards Text Block

3.       Information on option shares outstanding and option activity for the thirty-nine weeks ended September 28, 2012 is shown below (in thousands, except per share amounts):

 

     Weighted   Weighted 
     Average   Average 
   Option Exercise Options Exercise 
   Shares PriceExercisablePrice 
             
 Outstanding, December 30, 2011 5,478 $ 32.12  3,211 $ 32.27 
  Granted 564   50.32      
  Exercised (695)   27.06      
  Canceled (44)   34.95      
 Outstanding, September 28, 2012 5,303 $ 34.70  3,302 $ 32.81 

The Company recognized year-to-date share-based compensation of $10.0 million in 2012 and $8.8 million in 2011. As of September 28, 2012, there was $10.2 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 1.9 years.

 

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results:

  Thirty-nine Weeks Ended
  Sep 28, Sep 30,
  2012 2011
 Expected life in years  6.5    6.5 
 Interest rate  1.3%   2.8%
 Volatility  36.6%   33.7%
 Dividend yield  1.8%   2.0%
 Weighted average fair value per share$ 15.61  $ 13.35 

Under the Company's Employee Stock Purchase Plan, the Company issued 239,000 shares in 2012 and 313,000 shares in 2011. The fair value of the employees' purchase rights under this Plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees' purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results:

 

  Thirty-nine Weeks Ended
  Sep 28, Sep 30,
  2012 2011
 Expected life in years  1.0    1.0 
 Interest rate  0.2%   0.3%
 Volatility  40.6%   27.8%
 Dividend yield  1.7%   2.1%
 Weighted average fair value per share$ 15.58  $ 10.05 

In May 2012, the Company granted 6,000 Restricted Share Units to a key employee that will vest on the third anniversary of the date of grant. The market value of the units at the date of grant will be charged to operations over the vesting period. The expense related to this arrangement is not significant.