We have equity-based compensation plans that authorize the issuance of equity-based awards for shares of Class A and Class B common stock to directors, officers and key employees. Equity-based compensation grants are designed to reward long-term contributions to Moog and provide incentives for recipients to remain with Moog.

We have an Employee Stock Purchase Plan ("ESPP") that allows for qualified employees (as defined in the plan) to purchase our common stock at a price equal to 85% of the fair market value at the lower of the beginning or the end of the semi-annual offering period. During 2020, we issued 119,470 shares of Class B common stock at a weighted average price per share of $58.71. During 2019, we issued 79,928 shares of Class B common stock at a weighted average price per share of $65.91.

The 2014 Long Term Incentive Plan ("2014 Plan") authorizes the issuance of a total of 2,000,000 shares of either Class A or Class B common stock. The 2014 Plan is intended to provide a flexible framework that permits the development and implementation of a variety of equity-based programs that base awards on key performance metrics as well as align our long term incentive compensation with our peers and shareholder interests.

During 2020, we granted awards in the form of stock appreciations rights (SARs), performance-based restricted stock units (PSUs) and restricted stock awards (RSAs). The compensation cost for employee and non-employee director equity-based compensation programs for all current and prior year awards granted are as follows:



	2020		2019		2018
Stock appreciation rights	$	2,643	$	2,594	$	2,617
Performance-based restricted stock units	221		2,048		1,650
Restricted stock awards	680		480		480
Employee stock purchase plan	2,117		1,342		1,057
Total compensation cost before income taxes	$	5,661	$	6,464	$	5,804
Income tax benefit	$	677	$	1,024	$	1,136

The fair value of SARs granted was estimated on the date of grant using the Black-Scholes option-pricing model. The following table provides the range of assumptions used to value awards and the weighted-average fair value of the awards granted.



	2020			2019			2018
Expected volatility	27% - 28%			26		%	25% - 26%
Risk-free rate	1.7% - 1.8%			3.0		%	2.1%
Expected dividends	1.2		%	1.2		%	—		%
Expected term	5-6 years			5-6 years			5-6 years
Weighted-average fair value of awards granted	$	21.45		$	20.79		$	23.03

To determine expected volatility, we generally use historical volatility based on daily closing prices of our Class A and Class B common stock over periods that correlate with the expected terms of the awards granted. The risk-free rate is based on the United States Treasury yield curve at the time of grant for the appropriate expected term of the awards granted. Expected dividends are based on our history and expectation of dividend payouts. The expected term of equity-based awards is based on vesting schedules, expected exercise patterns and contractual terms.

The number of shares received upon the exercise of a SAR is equal in value to the difference between the fair market value of the common stock on the exercise date and the exercise price of the SAR. The term of a SAR may not exceed ten years from the grant date. The exercise price of SARs and options, determined by a committee of the Board of Directors, may not be less than the fair value of the common stock on the grant date.

SARs and options are as follows:



Stock Appreciation Rights	Number of Awards		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at September 28, 2019	935,156		$	62.60
Granted in 2020	136,700		85.95
Exercised in 2020	(71,557	)	41.77
Expired in 2020	(6,599	)	75.58
Forfeited in 2020	(9,430	)	83.20
Outstanding at October 3, 2020	984,270		$	67.07	5.0 years	$	6,777
Exercisable at October 3, 2020	740,288		$	61.63	3.8 years	$	6,777

The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on our closing price of Class A common stock of $66.82 and Class B common stock of $64.27 as of October 3, 2020. That value would have been effectively received by the SAR holders had all SARs been exercised as of that date.

The intrinsic value of awards exercised and fair value of awards vested are as follows:



	2020		2019		2018
Stock Appreciation Rights
Intrinsic value of SARs exercised	$	2,665	$	10,616	$	7,268
Total fair value of SARs vested	$	2,825	$	2,871	$	3,282
Stock Options
Intrinsic value of options exercised	$	—	$	—	$	932
Total fair value of options vested	$	—	$	—	$	51

As of October 3, 2020, total unvested compensation expense associated with SARs amounted to $2,926 and will be recognized over a weighted-average period of two years.

PSU awards consist of shares of our stock which are payable upon the determination that we achieve certain established performance targets and can range from 0% to 200% of the targeted payout based on the actual results. PSU's granted in 2020 have a performance period of three years. The fair value of each PSU granted is equal to the fair market value of our common stock on the date of grant. PSUs granted generally have a three years period cliff vesting schedule; however, according to the grant agreements, if certain conditions are met, the employee (or beneficiary) will receive a prorated amount of the award based on active employment during the service period.

PSUs are as follows:



Performance-Based Restricted Stock Units	Number of Awards		Weighted- Average Grant Date Fair Value
Nonvested at September 28, 2019	65,019		$	81.20
Granted in 2020	34,129		85.95
Vested in 2020	(29,195	)	82.31
Forfeited in 2020	(5,112	)	82.36
Nonvested at October 3, 2020	64,841		$	83.11

As of October 3, 2020, total unvested compensation expense associated with nonvested PSUs amounted to $2,264 and will be recognized over a weighted-average period of two years.

The number of Class B common stock to be issued for PSU awards granted in 2018 that vested based on the achievement of performance targets in 2020, will be approximately 14,900 shares.

The fair value of each RSA granted is equal to the fair market value of our common stock on the date of grant. These shares vest and are issued upon grant. There were 7,912 RSAs granted and vested in 2020 at a price of $85.95 resulting in a fair value of the RSAs vested of $680.

The Management Short Term Incentive Plan ("STI") is intended to attract, motivate and retain highly qualified executives serving on the management team and reward them according to our financial performance with a payment of either cash and/or shares of our common stock. There were 57,783 STI awards granted and vested in 2020 at a price of $86.80, resulting in a fair value of $5,016 in satisfaction of a portion of the 2019 management profit share expense.