Stockholders' Equity

6 Months Ended

Jul. 01, 2011

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 11. STOCKHOLDERS’ EQUITY

Stock-Based Compensation

     At the end of the second quarter of 2011, there were 2.3 million shares reserved for issuance under various incentive plans. The Company’s Director Stock Unit Plan allows the Company to pay its non-employee directors annual retainer fees and, at their election, meeting fees in the form of stock units. Employee and director stock units are included in common stock outstanding on the date of vesting and stock options are included in common stock outstanding upon exercise by the participant. The fair value of stock options and stock units is amortized over the respective vesting period representing the requisite service period.

     The Company granted approximately 0.2 million stock units to employees during the six months ended July 1, 2011. The weighted-average grant-date fair value of the employee stock units was $69.91. During the six months ended July 1, 2011, the Company granted directors 18,679 stock units with a weighted-average grant-date fair value of $64.80. The Company granted approximately 0.1 million stock options to employees during the six months ended July 1, 2011 that had a weighted-average grant-date fair value of $28.50 and a weighted-average exercise price of $69.54. The fair value of the stock options granted during the six months ended July 1, 2011 was estimated using the Black-Scholes option pricing model with the following assumptions:

Expected Stock	Risk-Free Interest	Expected Dividend	Average Expected
Price Volatility	Rate	Yield	Life
38%	2.2% to 2.5%	0%	6.13 years

Share Repurchase

     In the six months ended July 2, 2010, the Company repurchased 1 million of its outstanding shares for $41.2 million. Purchases were made in the open market using available cash on hand. No repurchases were made in the six months ended July 1, 2011.