Stockholders' Equity and Stock Compensation Plans

6 Months Ended

Apr. 01, 2012

Stockholders' Equity and Stock Compensation Plans

Stockholders' Equity and Stock Compensation Plans

6.Stockholders’ Equity and Stock Compensation Plans

We recognize the fair value of our stock-based compensation awards as compensation expense on a straight-line basis over the requisite service period in which the award vests.  For the three and six months ended April 1, 2012, stock-based compensation expense was $2.7 million and $5.6 million, respectively, compared to $2.5 million and $5.3 million for the same periods last year. The majority of these amounts was included in “Selling, general and administrative (“SG&A”) expenses” in our condensed consolidated statements of income.  In the three months ended April 1, 2012, we granted 51,000 stock options with exercise prices of $22.95 - $25.27 per share and an estimated weighted-average fair value of $8.95 per share.  For the six months ended April 1, 2012, we granted 458,249 stock options with exercise prices of $22.53 - $25.27 per share and an estimated weighted-average fair value of $8.10 per share.  In addition, we awarded 105,567 shares of restricted stock in the first quarter of fiscal 2012 to our directors and executive officers at the fair value of $22.53 per share on the award date.  All of these restricted shares are performance-based and vest over a three-year period.  The number of restricted shares that ultimately vest is based on the growth in our diluted earnings per share.  In the first quarter of fiscal 2012, we also awarded 181,348 restricted stock units (“RSUs”) to our employees at the fair value of $22.53 per share on the award date.  All of the RSUs have time-based vesting over a four-year period.