Stock-Based Compensation

9 Months Ended

Oct. 01, 2011

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

Stock-based Compensation

Stock-Based Compensation

Stock-based compensation expense consists of vesting grants of employee and director stock options and the employee stock purchase program ("ESPP"). The table below summarizes the stock-based compensation expense for the three and nine months ended October 1, 2011 and October 2, 2010:

	Three Months Ended				Nine Months Ended
	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Stock-based compensation expense:
Cost of goods sold	$	1,906	$	1,321	$	4,710	$	3,406
Research, development and engineering	2,179		1,627		6,240		4,749
Selling, general and administrative	2,051		1,709		7,392		4,784
Total stock-based compensation expense included in income from operations	$	6,136	$	4,657	$	18,342	$	12,939

Stock Option Plans

The following table summarizes the Company’s stock option transactions for the nine months ended October 1, 2011:

	Nine Months Ended
	October 1, 2011
	Shares (in thousands)		Weighted- average exercise price per share
Outstanding at December 31, 2010	28,436		$	6.03
Granted	5,430		12.24
Exercised	(2,660	)	6.52
Forfeited	(1,008	)	13.84
Outstanding at October 1, 2011	30,198		$	6.84

ESPP

Employees participating in the ESPP authorize the Company to withhold compensation and to use the withheld amounts to purchase shares of the Company's common stock at a discount.

The table below summarizes the ESPP common stock purchases for the three and nine months ended October 1, 2011 and October 2, 2010.

	Three Months Ended		Nine Months Ended
	October 1, 2011	October 2, 2010	October 1, 2011	October 2, 2010
Shares purchased (in thousands)	—	—	769	941