Stock-Based Compensation

6 Months Ended

Jun. 29, 2013

Share-based Compensation [Abstract]

Stock-Based Compensation [Text Block]

Stock-Based Compensation

Total share-based compensation expense recognized in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations was $1.0 million and $2.0 million for the three and six months ended June 29, 2013 and $1.4 million and $3.0 million for the three and six months ended June 30, 2012, respectively.

As of June 29, 2013, there was approximately $5.9 million of total unrecognized compensation cost related to unvested share-based compensation grants, which is expected to be amortized over a weighted-average period of 1.6 years.

Stock Options

A summary of the Company’s outstanding stock options as of and for the six months ended June 29, 2013 is as follows:

	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (a) (in thousands)
Outstanding at December 29, 2012	2,226,000		$	7.75	2.7	$	—
Granted	189,500		2.00
Exercised	—		—			$	—
Forfeited	(117,500	)	5.52
Outstanding at June 29, 2013	2,298,000		$	7.39	2.5	$	24
Exercisable at June 29, 2013	1,586,625		$	8.67	2.0	$	—

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(a) Intrinsic value for purposes of this table represents the amount by which the fair value of the underlying stock, based on the respective market prices at June 29, 2013 or, if exercised, the exercise dates, exceeds the exercise prices of the respective options.

The weighted-average grant date fair value of stock options granted during the six month period ended June 29, 2013, were at exercise prices equal to the market price of the stock on the grant dates, as calculated under the Black-Scholes Model with the weighted-average assumptions as follows:

Weighted average fair value of option grants during the year	$	1.01
Assumptions:
Expected option life in years	4.25
Risk-free interest rate	0.50		%
Expected volatility	65.7		%
Expected dividend yield	0.0		%

The risk-free interest rate represents the United States Treasury Bond constant maturity yield approximating the expected option life of stock options granted during the period. The expected option life represents the period of time that the stock options granted during the period are expected to be outstanding, based on the mid-point between the vesting date and contractual expiration date of the option. The expected volatility is based on the historical market price volatility of the Company’s common stock for the expected term of the options, adjusted for expected mean reversion.

RSUs

A summary of the Company’s non-vested restricted share units ("RSUs") as of and for the six months ended June 29, 2013 is as follows:

	RSUs		Weighted Average Grant Date Fair Value
Unvested at December 29, 2012	1,074,340		$	5.44
Granted	549,500		2.00
Vested	(352,500	)	6.29
Forfeited	(1,250	)	5.62
Unvested at June 29, 2013	1,270,090		$	2.85

The total fair value of RSUs, which vested during the three and six months ended June 29, 2013, was $0.4 million and $0.9 million, respectively, as of the respective vesting dates.

PSUs

A summary of the Company's non-vested performance share units ("PSUs") as of and for the six months ended June 29, 2013 is as follows:

	PSUs	Weighted Average Grant Date Fair Value
Unvested at December 29, 2012	—	$	—
Granted	730,500	2.00
Vested	—	—
Forfeited	—	—
Unvested at June 29, 2013	730,500	$	2.00

On May 1, 2013, 730,500 PSUs were granted to certain employees, with each award representing the right to receive one share of the Company's common stock upon the achievement of certain established performance targets and service conditions. The performance period for the awards is December 30, 2012 through December 28, 2013. Distributions under these awards are payable on the one year anniversary of the grant date provided the grantee's employment has not ceased prior to such date. The fair value of these awards was determined based on the Company's stock price on the grant date. These awards are subject to forfeiture upon termination of employment prior to vesting.

There was no compensation expense related to PSUs recognized in selling, general and administrative expenses in the Company's condensed consolidated statements of operations for the three and six months ended June 29, 2013. There were no performance share unit awards granted in fiscal year 2012.