Stock-Based Compensation

6 Months Ended

Jun. 24, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

Stock-based compensation cost recognized in operating results (included in selling, general, and administrative expenses) for the three and six months ended June 24, 2012 was $0.9 million and $2.7 million ($0.9 million and $2.6 million, net of tax), respectively. For the three and six months ended June 26, 2011, the total compensation expense was $2.0 million and $4.8 million ($1.5 million and $3.5 million, net of tax), respectively. The associated actual tax benefit realized for the tax deduction from option exercises of share-based payment units and awards released equaled $0.7 million and $1.1 million for the six months ended June 24, 2012 and June 26, 2011, respectively.

Stock Options

Option activity under the principal option plans as of June 24, 2012 and changes during the six months ended June 24, 2012 were as follows:

	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 25, 2011	2,600,805		$	19.54	4.39	$	512
Granted	460,670		11.13
Exercised	(35,419	)	8.87
Forfeited or expired	(142,048	)	16.33
Outstanding at June 24, 2012	2,884,008		$	18.48	4.47	$	—
Vested and expected to vest at June 24, 2012	2,884,008		$	18.48	4.47	$	—
Exercisable at June 24, 2012	2,383,699		$	19.76	3.45	$	—

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of fiscal 2012 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 24, 2012. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised for the six months ended June 24, 2012 and June 26, 2011 was $0.1 million and $1.0 million, respectively.

As of June 24, 2012, $2.0 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.1 years.

The fair value of share-based payment units was estimated using the Black-Scholes option pricing model. The table below presents the weighted-average expected life in years. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions and weighted-average fair values were as follows:

Six months ended	June 24, 2012		June 26, 2011
Weighted-average fair value of grants	5.02		9.88
Valuation assumptions:
Expected dividend yield	0.00	%	0.00	%
Expected volatility	51.92	%	49.85	%
Expected life (in years)	5.05		4.96
Risk-free interest rate	0.872	%	2.178	%

Restricted Stock Units

Nonvested service based restricted stock units as of June 24, 2012 and changes during the six months ended June 24, 2012 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 25, 2011	617,672		0.79	$	21.29
Granted	202,795			$	10.80
Vested	(171,535	)		$	11.63
Forfeited	(33,219	)		$	18.13
Nonvested at June 24, 2012	615,713		1.28	$	20.70
Vested and expected to vest at June 24, 2012	612,803		1.28
Vested at June 24, 2012	62,825		—

The total fair value of restricted stock awards vested during the first six months of 2012 was $2.0 million as compared to $3.2 million in the first six months of 2011. As of June 24, 2012, there was $3.3 million of unrecognized stock-based compensation expense related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.8 years.

Other Compensation Arrangements

On March 15, 2010, we initiated a plan in which time-vested cash unit awards were granted to eligible employees. The time-vested cash unit awards under this plan vest evenly over two or three years from the date of grant. The total amount accrued related to the plan equaled $0.4 million at June 24, 2012, of which $0.3 million and $0.5 million was expensed for the three and six months ended June 24, 2012. The total amount accrued related to the plan equaled $0.2 million at June 26, 2011, of which $0.2 million and $0.3 million was expensed for the three and six months ended June 26, 2011. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.