STOCK BASED COMPENSATION PLANS

3 Months Ended

Apr. 01, 2012

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS

NOTE 10—STOCK BASED COMPENSATION PLANS

        The Company accounts for stock-based awards in accordance with ASC 718, "Compensation—Stock Compensation." The Company has granted stock awards under its 1996 and 2004 stock incentive plans, which generally vest between one and four years from the date of grant.

        The fair value of non-vested share units awarded by the Company is measured using the closing fair market value as reported on the NASDAQ Stock Market of the Company's stock on the date the awards are granted. The following table presents the non-vested share unit activity under the Company's stock based compensation plans:

	Three Months Ended
	April 1, 2012		April 3, 2011
Non-vested share units granted, in millions		0.1		0.1
Weighted average grant date fair value of non-vested share units	$	4.52	$	10.90
Stock compensation expense related to share units, in millions	$	2.5	$	2.0

        The fair value of the options granted during the three months ended April 1, 2012 and April 3, 2011 was estimated on the date of grant using the Black-Scholes valuation model, with the assumptions shown below.

	Three Months Ended
	April 1, 2012			April 3, 2011
Risk-free interest rate		1	%		3	%
Volatility		86	%		79	%
Estimated option life, years		5.8			5.7
Dividend yield		—			—
Stock options granted, in millions		0.1			0.1
Weighted-average grant date fair value of stock options granted	$	3.24		$	7.73
Stock compensation expense related to stock options, in millions	$	0.8		$	0.4