SHARE-BASED COMPENSATION

3 Months Ended

Sep. 26, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

The Company’s incentive plan provides for equity and liability awards to employees and non-employee directors in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold, research, development and engineering, and selling, general and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations.

In addition to service conditions, these SARs contain a performance condition. The additional performance condition is based upon the achievement of Return on Invested Capital (ROIC) goals relative to a peer group. All awards with performance conditions are measured over the vesting period and are charged to compensation expense over the requisite service period based on the number of shares expected to vest. The SARs cliff vest after a three-year period from date of grant and expire five years from date of grant.

The grant date fair value for the awards granted below were estimated using the Black Scholes option valuation method:



	July 29, 2015		October 31, 2014
SARs Granted	248,166		213,166
Strike Price	$	10.26	$	8.22
Fair Value	$	3.65	$	3.04

Total share-based compensation expense recognized during the three months ended September 26, 2015 and September 27, 2014 was approximately $189,000 and $165,000, respectively. As of September 26, 2015, total unrecognized compensation expense related to unvested share-based compensation arrangements was approximately $1.2 million. This expense is expected to be recognized over a weighted average period of 2.59 years.

During the three months ended September 26, 2015, 3,333 SARs were exercised, with an immaterial amount of intrinsic value. During the three months ended September 27, 2014, 4,930 options to purchase shares of common stock were exercised, with an immaterial amount of intrinsic value.