Stock-Based Compensation

6 Months Ended

Jul. 02, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6. Stock-Based Compensation

We compensate officers, directors and key employees with stock-based compensation under three stock plans approved by our shareholders in 1997, 2004 and 2010 and administered under the supervision of our Board of Directors. Stock option awards are granted at exercise prices equal to the closing price of our stock on the date of grant. Generally, options vest proportionally over periods of three to four years from the dates of the grant and expire after ten years. Compensation expense, net of estimated forfeitures, is recognized ratably over the vesting period. Stock-based compensation expense for the three months ended July 2, 2011, and July 3, 2010, was $1.1 million and $0.7 million, respectively. Stock-based compensation expense for the six months ended July 2, 2011, and July 3, 2010, was $2.3 million and $1.5 million, respectively.