v2.3.0.11
STOCK-BASED COMPENSATION
 6 Months Ended
Jul. 02, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK - BASED COMPENSATION
NOTE 11 – STOCK-BASED COMPENSATION:

Under our Amended and Restated Equity Incentive Plan, the compensation committee of our Board of Directors may award incentive stock options (ISOs and non-ISOs), stock appreciation rights (SARs), restricted stock, unrestricted stock, stock deliverable on a deferred basis, and performance-based stock awards, intended to help defray the cost of awards.  The fair value of time-based or performance-based stock option grants are estimated on the date of grant using the Black-Scholes option pricing method with the following weighted-average assumptions used for grants issued during the six-month period ended July 2, 2011.

   
Assumptions
 
     
Volatility
  34.96%
Risk-free interest rate
  2.86%
Expected term (years)
  7 
Dividend yield
  -- 

The fair value of restricted stock is determined based on the quoted closing price of our common stock on the date of grant.


The following table summarizes our stock option and restricted stock activity during the six-month period ended July 2, 2011:

   
Time-based
stock options
  
Restricted
stock
 
        
Outstanding, January 1, 2011
  2,471,486   481,413 
          
Granted
  404,100   382,820 
Exercised
  (293,508)  -- 
Vested restricted stock
  --   (196,282)
Forfeited
  (58,850)  (26,550)
Expired
  (7,800)  -- 
          
Outstanding, July 2, 2011
  2,515,428   641,401 
          
Exercisable, July 2, 2011
  1,502,566   -- 

During the three-month period ended July 2, 2011, we granted 37,500 time-based stock options with a weighted-average Black-Scholes fair value of $12.50 per share and a weighted-average exercise price of $30.18 per share.  In connection with this grant, we recognized approximately $16,000 in stock-based compensation expense during the three-month period ended July 2, 2011.

During the six-month period ended July 2, 2011, we granted 404,100 time-based stock options with a weighted-average Black-Scholes fair value of $12.05 per share and a weighted-average exercise price of $28.60 per share.  In connection with these grants, we recognized approximately $375,000 in stock-based compensation expense during the six-month period ended July 2, 2011.

During the three-month period ended July 2, 2011, we granted 58,620 shares of restricted stock to employees with a weighted-average fair value on the date of grant of $30.31 per share.  In connection with these grants, we recognized approximately $21,000 in stock-based compensation expense during the three-month period ended July 2, 2011.

During the six-month period ended July 2, 2011, we granted 382,820 shares of restricted stock to employees with a weighted-average fair value on the date of grant of $28.72 per share.  In connection with these grants, we recognized approximately $743,000 in stock-based compensation expense during the six-month period ended July 2, 2011.

Unrecognized stock-based compensation expense related to outstanding unvested stock options and unvested restricted stock awards is expected to be recorded as follows:

(dollars in thousands)
 
Time-based
stock
options
  
Restricted
stock
  
Total
 
           
2011 (period from July 3 through December 31, 2011)
 $1,775  $2,560  $4,335 
2012                                                                   
  3,098   4,704   7,802 
2013                                                                   
  2,319   3,645   5,964 
2014                                                                   
  1,298   2,556   3,854 
       Total                                                                   
 $8,490  $13,465  $21,955