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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

NOTE 5 – STOCK-BASED COMPENSATION

Stock Option Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. The grant date fair value for options and similar instruments will be estimated using option pricing models. Under accounting standards, the Company is required to select a valuation technique or option pricing model that meets the criteria as stated in the standard. The Company uses the Black-Scholes model. Accounting standards require that the Company estimate forfeitures for stock options and reduce compensation expense accordingly. The Company has reduced its stock compensation expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

During the first three months of 2013 and 2012, the Company recognized stock option compensation costs of $0.1 million and $0.2 million, respectively. The remaining unrecognized compensation cost related to unvested awards at March 31, 2013, approximated $0.1 million, and the weighted average period of time over which this cost will be recognized is approximately one year.

 

There were no stock options granted during the first three months of fiscal year 2013 or 2012. The following table summarizes stock options outstanding as of March 31, 2013, as well as activity during the three months then ended:

 

     Shares      Weighted Average
Exercise Price		  

Outstanding at December 30, 2012

      393,500       $ 8.49   

Granted

      0         0   

Exercised

      81,000         9.73   

Forfeited or canceled

      5,500         2.71   
  

 

 

     

 

 

  

Outstanding at March 31, 2013

      307,000       $ 8.35   
  

 

 

     

 

 

  

Exercisable at March 31, 2013

      302,000       $ 8.27   
  

 

 

     

 

 

  

At March 31, 2013, the aggregate intrinsic value of in-the-money options outstanding and options exercisable was $3.3 million and $3.3 million, respectively (the intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option).

Cash proceeds and intrinsic value related to total stock options exercised during the first three months of 2013 and 2012 are provided in the following table:

 

     Three Months Ended  
     March 31, 2013      April 1, 2012  
     (In thousands)  

Proceeds from stock options exercised

    $ 868       $ 131   

Intrinsic value of stock options exercised

    $ 581       $ 179   

The Company did not recognize any significant tax benefit with regard to stock options in either period presented.

Restricted Stock Awards

During the three months ended March 31, 2013 and April 1, 2012, the Company granted restricted stock awards for 584,000 and 557,500 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a two to five-year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, awards (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was $0.6 million and $1.3 million for the three months ended March 31, 2013, and April 1, 2012, respectively. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of March 31, 2013, as well as activity during the three months then ended:

 

     Shares      Weighted Average
Grant Date
Fair Value		  

Outstanding at December 30, 2012

      1,973,500       $ 14.79   

Granted

      584,000         16.06   

Vested

      372,000         14.63   

Forfeited or canceled

      475,500         14.04   
  

 

 

     

 

 

  

Outstanding at March 31, 2013

      1,710,000       $ 15.45   
  

 

 

     

 

 

  

As of March 31, 2013, the unrecognized total compensation cost related to unvested restricted stock was $16.6 million. That cost is expected to be recognized by the end of 2016.

The Company did not recognize any significant tax benefit with regard to restricted stock in either period presented.