Share-Based Compensation

9 Months Ended

Jun. 29, 2012

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

Share-Based Compensation

SHARE-BASED COMPENSATION:

During the three and nine months ended June 29, 2012, share-based compensation expense was approximately $0.9 million, before taxes of $0.4 million, and approximately $12.5 million, before taxes of $4.9 million, respectively. During the three and nine months ended July 1, 2011, share-based compensation expense was approximately $5.4 million, before taxes of $2.1 million, and approximately $11.8 million, before taxes of $4.6 million, respectively.

Stock Options

Time-Based Options

The compensation cost charged to expense during the three and nine months ended June 29, 2012 for Time-Based Options was approximately $2.1 million and $6.2 million, respectively. The compensation cost charged to expense during the three and nine months ended July 1, 2011 for Time-Based Options was approximately $2.7 million and $8.6 million, respectively. As of June 29, 2012, there was approximately $19.7 million of unrecognized compensation expense related to nonvested Time-Based Options, which is expected to be recognized over a weighted-average period of approximately 2.85 years.

A summary of Time-Based Options activity is presented below:

Options	Shares (000s)		Weighted- Average Exercise Price
Outstanding at September 30, 2011	15,982		$	8.73
Granted	2,662		$	14.15
Exercised	(2,111	)	$	7.52
Forfeited and expired	(725	)	$	11.43
Outstanding at June 29, 2012	15,808		$	10.97

Performance-Based Options

The Company recognized a reduction to expense of approximately ($2.1) million and a charge to expense of approximately $3.5 million during the three and nine months ended June 29, 2012 for Performance-Based Options, respectively. During the three and nine months ended July 1, 2011, $1.5 million was charged to expense for Performance-Based Options in both periods. During the third quarter of fiscal 2012, the Company reversed approximately $2.4 million of compensation expense related to expense previously recognized for the Performance-Based Options as meeting the 2012 EBIT performance target is not probable.

A summary of Performance-Based Options activity is presented below:

Options	Shares (000s)		Weighted- Average Exercise Price
Outstanding at September 30, 2011	16,051		$	8.73
Granted	2,662		$	14.15
Exercised	(1,008	)	$	7.23
Forfeited and expired	(1,644	)	$	9.42
Outstanding at June 29, 2012	16,061		$	9.66

Installment Stock Purchase Opportunities (“ISPOs”)

The Company recorded approximately $0.5 million and $0.8 million of compensation expense related to these awards during the three and nine months ended June 29, 2012, respectively. The Company recorded approximately $0.7 million of compensation expense related to these awards during the three and nine months ended July 1, 2011. As of June 29, 2012, there was approximately $2.4 million of unrecognized compensation expense related to nonvested ISPOs, which is expected to be recognized over a weighted-average period of approximately 3.91 years. During the nine months ended June 29, 2012, the Company granted 845,000 ISPOs at a weighted-average exercise price of $14.62.

Seamless Unit Options

The Company recognized compensation expense of approximately $0.4 million and $1.5 million for Seamless unit options during the three and nine months ended June 29, 2012, respectively. During the nine months ended June 29, 2012, Seamless granted approximately 2.5 million unit options.

Deferred Stock Units

The Company granted 34,480 deferred stock units during the nine months ended June 29, 2012. The compensation cost charged to expense during the three and nine months ended June 29, 2012 for deferred stock units was approximately $0 and $0.5 million, respectively. The Company granted 71,594 deferred stock units during the nine months ended July 1, 2011. The compensation cost charged to expense during the three and nine months ended July 1, 2011 for deferred stock units was approximately $0.5 million and $1.0 million, respectively.