STOCK BASED COMPENSATION PLANS

3 Months Ended

Mar. 31, 2013

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS

NOTE 11—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. Stock compensation expense related to non-vested share units, including performance-based share units, for the three months ended March 31, 2013 and April 1, 2012, was $2.6 million and $2.5 million, respectively. The following table presents the non-vested share unit activity for which only a service condition exists under the Company's stock-based compensation plans:

• Non-Vested Share Units—Service Based

	March 31, 2013		April 1, 2012
Non-vested share units granted, in millions(a)		—		0.1
Weighted average grant date fair value of non-vested share units	$	3.87	$	4.52

(a)

Less than 100,000 units granted in Q1 2013

• Stock Options

        The fair value of the stock options granted during each of the three months ended March 31, 2013 and April 1, 2012 was estimated on the date of grant using the Black-Scholes valuation model, with the assumptions shown below.

	Three Months Ended
	March 31, 2013			April 1, 2012
Risk-free interest rate		1.3	%		1.4	%
Volatility		86	%		86	%
Expected term, years		5.8			5.8
Dividend yield		—			—
Stock options granted, in millions(a)		—			0.1
Weighted-average grant date fair value of stock options	$	2.75		$	3.24
Stock compensation expense related to stock options, in millions	$	1.2		$	0.8

(a)

Less than 100,000 units granted in Q1 2013