Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation

Stock-Based Compensation

7.             Stock-Based Compensation

The Company has elected to use the BSM option-pricing model, which incorporates various assumptions including volatility, expected life, and interest rates.  The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options, adjusted for the impact of unusual fluctuations not reasonably expected to recur and other relevant factors including implied volatility in market traded options on the Company’s common stock. The expected life of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees.

The weighted average assumptions used for the three month periods ended March 31, 2013 and 2012 and the resulting estimates of weighted-average fair value per share of stock options granted during those periods are as follows:

	Three months ended March 30,
	2013			2012
Expected life	75 months			75 months
Stock volatility	35.00		%	40.00		%
Risk free interest rate	1.04		%	0.86		%
Dividend yield	0.00		%	0.00		%
Fair value per share	$	5.59		$	6.33