Stock-Based Compensation

9 Months Ended

Oct. 01, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation [Text Block]

10. Stock-Based Compensation

Total stock-based compensation expense recognized in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations was $2.1 million and $7.1 million for the three and nine months ended October 1, 2011, respectively, and $3.2 million and $8.8 million for the three and nine months ended October 2, 2010, respectively.

As of October 1, 2011, there was approximately $11.8 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 2.4 years.

Stock Options

A summary of the Company’s outstanding stock options as of and for the nine months ended October 1, 2011 is as follows:

	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value(a) (In Thousands)
Outstanding at January 1, 2011	3,805,224		$	10.70	3.1	$	1,075
Granted	590,000			5.62
Exercised	(70,598	)		4.04		$	141
Forfeited	(99,146	)		7.10
Outstanding at October 1, 2011	4,225,480		$	10.18	2.8	$	—
Exercisable at October 1, 2011	2,761,230		$	12.59	1.8	$	—

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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 October 1, 2011 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 nine month period ended October 1, 2011 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	$	2.28
Assumptions:
Expected option life in years		4.25
Risk-free interest rate		1.46	%
Expected volatility		49.1	%
Expected dividend yield		0.0	%

The risk-free interest rate represents the U.S. 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.

Restricted Shares and Restricted Share Units (“RSUs”)

A summary of the Company’s unvested restricted shares and RSUs as of and for the nine months ended October 1, 2011 is as follows:

	Restricted Shares				RSUs
	Shares			Weighted Average Grant Date Fair Value	Shares			Weighted Average Grant Date Fair Value
Unvested at January 1, 2011	25,300		$	6.53	1,720,674		$	8.13
Granted	—			—	806,084			5.62
Vested	—			—	(745,674	)		9.42
Forfeited	(25,300	)		6.53	(8,750	)		7.28
Unvested at October 1, 2011	—		$	—	1,772,334		$	6.45

The total fair value of RSUs that vested during the three and nine months ended October 1, 2011 was $1.5 million and $3.7 million, respectively, as of the respective vesting dates.