Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

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. Compensation expense, net of estimated forfeitures, is recognized ratably over the vesting period. Stock-based compensation expense for the three months ended March 31, 2012, and April 2, 2011, was $7.0 million and $1.1 million, respectively.

CEO Transition Costs

In February 2012, we announced that William R. McLaughlin, President and Chief Executive Officer would retire from the Company and our Board of Directors effective June 1, 2012. In recognition of Mr. McLaughlin's leadership and contributions to the Company, the Company's Compensation Committee approved the modification of Mr. McLaughlin's unvested stock awards, including performance stock awards. The performance stock awards are subject to applicable performance adjustments based on free cash flows and actual market share growth versus performance targets. During the three months ended March 31, 2012, we incurred $5.6 million of non-recurring, non-cash expenses associated with these stock award modifications.