v2.3.0.15
Stock-Based Compensation
9 Months Ended
Sep. 30, 2011
Stock-Based Compensation [Abstract] 
STOCK-BASED COMPENSATION

7. STOCK-BASED COMPENSATION

 

Compensation costs related to share-based payments for the three months ended September 30, 2011 and October 1, 2010 totaled $1.8 million and $2.4 million, respectively. Of these amounts $1.5 million and $2.1 million, respectively, are included in Selling, General and Administrative Expenses. Compensation costs related to share-based payments for the nine months ended September 30, 2011 and October 1, 2010 totaled $5.1 million and $5.2 million, respectively. Of these amounts $4.2 million and $4.5 million, respectively, are included in Selling, General and Administrative Expenses. During the third quarter of 2010, the Company recorded $0.7 million of additional expense related to the accelerated vesting of equity awards issued to the Company's former Senior Vice President – Orthopaedics, who passed away during the quarter.

 

Stock-based compensation expense included in the Condensed Consolidated Statement of Cash Flows includes costs recognized for the annual share contribution to the Company's 401(k) plan of $1.2 million and $0.0 million for the three months ended September 30, 2011 and October 1, 2010, respectively. Stock-based compensation expense included in the Condensed Consolidated Statement of Cash Flows for the annual share contribution to the Company's 401(k) plan for the nine months ended September 30, 2011 and October 1, 2010 totaled $3.7 million and $0.0 million, respectively.

 

The weighted average fair value and assumptions used to value options granted are as follows:

  Nine Months Ended
  September 30,  October 1,
  2011  2010
 Weighted average fair value$ 9.42 $ 8.24
 Risk-free interest rate 2.04%  2.62%
 Expected volatility 40%  40%
 Expected life (in years)  5   5
 Expected dividend yield 0%  0%

 The following table summarizes time-vested stock option activity:
      Number of Time-Vested Stock Options  Weighted Average Exercise Price  Weighted Average Remaining Contractual Life (In Years)  Aggregate Intrinsic Value (In Millions)
 Outstanding atDecember 31, 2010  1,463,556 $ 23.46      
  Granted  292,959   24.15      
  Exercised  (78,028)   21.41      
  Forfeited or expired  (101,901)   22.55      
 Outstanding atSeptember 30, 2011  1,576,586 $ 23.75   6.3 $ 0.4
 Exercisable atSeptember 30, 2011  1,055,286 $ 23.51   5.2 $ 0.4

 The following table summarizes performance-vested stock option activity:
      Number of Performance-Vested Stock Options  Weighted Average Exercise Price  Weighted Average Remaining Contractual Life (In Years)  Aggregate Intrinsic Value (In Millions)
 Outstanding atDecember 31, 2010  744,523 $ 23.68      
  Exercised (25,194)   22.56      
  Forfeited or expired  (235,977)   22.22      
 Outstanding atSeptember 30, 2011  483,352 $ 24.45  6.2 $0.0
 Exercisable atSeptember 30, 2011  252,894 $ 22.55  5.2 $0.0

 The following table summarizes time-vested restricted stock and unit activity:
      Time-Vested Activity  Weighted Average Fair Value
 Nonvested atDecember 31, 2010  123,386 $ 22.57
  Granted  25,241   24.16
  Vested  (7,993)   21.98
  Forfeited or expired  (2,713)   23.23
 Nonvested atSeptember 30, 2011  137,921 $ 22.88

 The following table summarizes performance-vested restricted stock and unit activity:
      Performance-Vested Activity  Weighted Average Fair Value
 Nonvested atDecember 31, 2010  283,797 $ 15.10
  Granted  279,415   18.21
  Vested  (200)   18.47
  Forfeited or expired  (11,394)   16.11
 Nonvested atSeptember 30, 2011  551,618 $ 16.67