Stock Compensation

3 Months Ended

Mar. 31, 2016

Holdings has established various stock compensation plans which include restricted share grants and stock purchase plans. Compensation values are based on the value of Holdings' common stock at the grant date. The common stock value is added to equity and charged to period expense or included in inventory and cost of sales.

The Executive Incentive Plan, Short-Term Incentive Plan ("STIP"), Long-Term Incentive Plan ("LTIP") and Director Stock Plan (collectively referred to as "Prior Plans") were replaced by the Omnibus Incentive Plan (the "Omnibus Plan") in 2014. No new awards will be granted under such Prior Plans. Outstanding awards under the Prior Plans will continue to be governed by the terms of such plans until exercised, expired, or otherwise terminated or canceled.

The Omnibus Plan provides for a Long-Term Incentive Award ("LTIA") for the 2014 plan year and forward. The LTIAs provide both time and performance based incentives.


•	75% of the LTIA is service-based restricted stock that will vest in equal installments over a three-year period.


•	25% of the LTIA is market-based restricted stock that will vest on the third year anniversary of the grant date contingent upon total shareholder return ("TSR") compared to the Company’s peers.

For the three months ended March 31, 2016 the Company recognized a net total of $5.3 of stock compensation expense, which is net of stock forfeitures and includes expense for the Prior Plans and the LTIA under the Omnibus Plan. For the three months ended April 2, 2015, the Company recognized $6.9 of stock compensation expense, net of forfeitures. The entire stock compensation expense of $5.3 and $6.9, for the three months ended March 31, 2016 and April 2, 2015, respectively, was recorded as selling, general and administrative.

During the first quarter ended March 31, 2016, 492,624 shares of class A common stock with an aggregate grant date fair value of $21.4 were granted under the service-based portion of the Company's LTIA. In addition, 125,894 shares of class A common stock with an aggregate grant date fair value of $6.8 were granted under the market-based portion of the Company's LTIA under the Omnibus Plan and such shares are eligible to vest on the three-year anniversary of the grant date depending on total shareholder return compared to the Company's peers. Additionally, 102,943 shares of class A common stock with an aggregate grant date fair value of $5.0 awarded under the Company's LTIP vested during the quarter ended March 31, 2016.