Stock-Based Compensation

6 Months Ended

Jul. 02, 2016

STOCK-BASED COMPENSATION

Stock-based compensation expense recorded in the Condensed Consolidated Statements of Income was $5.5 million and $1.4 million for the second quarters of 2016 and 2015, respectively. Stock-based compensation expense recorded in the Condensed Consolidated Statements of Income was $19.8 million and $2.8 million for the first six months of 2016 and 2015, respectively.

During the first six months of 2016, we issued 1,090,823 stock options at a weighted average exercise price of $30.71 per share, 118,477 restricted shares, 81,999 performance-based restricted units and 28,393 restricted units to employees and directors. During the first six months of 2015, we issued 384,453 stock options with an exercise price of $31.02 per share and 119,003 restricted shares to employees and directors.

The acquisition of Diamond, as discussed further in Note 3, resulted in a significant amount of prior Diamond stock-based compensation awards converting to replacement Snyder's-Lance awards. Many of these awards accelerated vesting at the acquisition date due to change in control provisions. In addition, within transaction and integration related expenses on the Condensed Consolidated Statements of Income, we recognized $2.8 million in stock-based compensation expense for the second quarter of 2016 and $15.1 million in stock-based compensation expense and $1.0 million in cash compensation expense in the first six months of 2016 from replacement awards that vested due to acceleration clauses within employment agreements with former Diamond personnel. At the end of the second quarter of 2016, the replacement Snyder's-Lance stock-based awards that remained outstanding were as follows:


•	283,516 restricted units with unrecognized compensation expense of $6.1 million and vesting dates ranging from July 14, 2016 to January 18, 2020.


•	546,638 stock options which are fully vested and have exercise prices that range from $11.75 to $65.71. The total intrinsic value of these options was $10.1 million at the end of the second quarter.

To cover withholding taxes payable by employees upon the vesting of restricted shares, in the second quarter of 2016, we repurchased 43 shares of common stock for the vesting of Snyder's-Lance employee incentive awards and 10,229 shares for the vesting of replacement awards converted from prior Diamond awards. For the second quarter of 2015, we did not repurchase any shares to cover withholding taxes. For the first six months of 2016, we repurchased 22,759 shares of common stock for the vesting of Snyder's-Lance employee incentive awards and 68,986 shares for the vesting of replacement awards converted from prior Diamond awards. For the first six months of 2015, we repurchased 26,175 shares.

In addition, we recorded $1.0 million and $0.1 million in incentive compensation expense for our performance-based cash incentive plans for the second quarter of 2016 and 2015, respectively, and $1.2 million and $0.7 million for the first six months of 2016 and 2015, respectively.