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Stockholders' Equity and Benefit Plans

6 Months Ended

Jul. 02, 2011

Stockholders' Equity and Benefit Plans

Stockholders' Equity and Benefit Plans

4. STOCKHOLDERS' EQUITY AND BENEFIT PLANS

Common Stock Repurchase Programs. Purchases of the Company's common stock are made from time to time, subject to market conditions and at prevailing market prices, through the open market. Repurchased shares of common stock are recorded at cost and become authorized but unissued shares which may be issued in the future for general corporate and other purposes. The Company may terminate or limit the stock repurchase program at any time. In the event the repurchased shares are cancelled, the Company accounts for retirements by allocating the repurchase price to common stock, additional paid-in capital and retained earnings. The repurchase price allocation is based upon the equity contribution associated with historical issuances. The Company's repurchase programs are conducted pursuant to Rule 10b-18 of the Exchange Act.

The following table reflects the Company's common stock repurchase activity for the periods indicated (in millions).


								For the 13 Weeks Ended July 2, 2011								For the 26 Weeks Ended July 2, 2011								For the 2010 Fiscal Year
Period authorized		Dollar value authorized				Termination date		Number of shares repurchased				Dollar value repurchased				Number of shares repurchased				Dollar value repurchased				Number of shares repurchased				Dollar value repurchased
Fiscal Year 2010		$	30.0			None			0.0			$	0.0				0.0			$	0.0				0.0			$	0.0
Fiscal Year 2010		$	750.0			December 2013			0.6			$	60.9				1.9			$	155.4				3.1			$	179.2
Fiscal Year 2009		$	20.0			None																			0.5			$	20.0

Stock-Based Compensation Plans. The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation — Stock Compensation ("ASC 718"), using the Black-Scholes option pricing model to determine the fair value of stock options and stock appreciation rights at the date of grant. The Company's current stock-based compensation plans include: (a) stock options and restricted stock for its international employees, (b) stock options and restricted stock units for its non-employee directors and (c) stock appreciation rights, restricted stock and restricted stock units for its U.S.-based employees.

There have been no significant changes to the Company's stock-based compensation plans since the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2011.

The following table summarizes stock options and stock appreciation rights activity during the Second Quarter:


Stock Options and Stock Appreciation Rights		Shares				Weighted-Average Exercise Price				Weighted-Average Remaining Contractual Term (Years)				Aggregate Intrinsic Value
		IN THOUSANDS												IN THOUSANDS

Outstanding at April 2, 2011			1,468			$	35.41				6.4			$	85,452
Granted			6				93.29
Exercised			(230	)			26.24								18,490
Forfeited or expired			(1	)			8.84

Outstanding at July 2, 2011			1,243				37.39				6.4				105,130

Exercisable at July 2, 2011			498				24.17				4.5				48,735

Nonvested at July 2, 2011			745				46.24				7.6				56,396

Expected to vest			690			$	46.24				7.6			$	52,321

The aggregate intrinsic value in the table above is before income taxes and is based on the exercise price for outstanding and exercisable stock options and stock appreciation rights at July 2, 2011 and the fair market value on the exercise date for stock options and stock appreciation rights that have been exercised during the Second Quarter.

Stock Options and Stock Appreciation Rights Outstanding and Exercisable. The following table summarizes information with respect to stock options and stock appreciation rights outstanding and exercisable at July 2, 2011:


Stock Options and Stock Appreciation Rights Outstanding														Stock Options and Stock Appreciation Rights Exercisable
Range of Exercise Prices		Number of Shares				Weighted- Average Exercise Price				Weighted- Average Remaining Contractual Term (Years)				Number of Shares				Weighted- Average Exercise Price
		IN THOUSANDS												IN THOUSANDS
$0 - $9.33			12			$	9.22				0.5				12			$	9.22
$9.33 - $18.66			309				14.32				5.5				158				14.77
$18.66 - $27.99			201				23.59				3.5				171				23.82
$27.99 - $37.31			223				31.09				5.7				89				30.98
$37.31 - $65.30			241				39.02				7.7				68				40.61
$65.30 - $74.63			6				69.53				9.5				0				0.00
$74.63 - $83.96			245				81.23				9.2				0				0.00
$83.96 - $93.29			6				93.29				9.8				0				0.00

Total			1,243			$	37.39				6.4				498			$	24.17

Restricted Stock and Restricted Stock Units. The following table summarizes restricted stock and restricted stock unit activity during the Second Quarter:


Restricted Stock and Restricted Stock Units		Number of Shares				Weighted- Average Grant-Date Fair Value

		IN THOUSANDS
Nonvested at April 2, 2011			383			$	40.94
Granted			10				99.69
Vested			(30	)			36.18
Forfeited			(3	)			35.27

Nonvested at July 2, 2011			360				43.00

Expected to vest			324			$	43.00

The total fair value of restricted stock and restricted stock units vested during the Second Quarter was approximately $3.0 million.