Share-Based Compensation

3 Months Ended

Jun. 28, 2014

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

The Company recognizes expense related to the fair value of its share-based compensation awards using the Black-Scholes model to estimate the fair value of awards on the date of grant, except for unvested restricted stock unit awards which are valued at the fair value of the Company's stock on the date of award. The Company recognizes compensation expense for all share-based compensation awards on a straight-line basis over the requisite service period of the award.

Stock-settled stock appreciation rights (SARs) grant the right to receive shares of the Company's stock equivalent to the increase in stock value of a specified number of shares over a specified period of time, divided by the stock price at the time of exercise. The Company uses the Black-Scholes model to estimate the fair value of SARs. Similar to options, SARs are recorded at the fair value of the award at grant date and the expense is recognized on a straight-line basis over the requisite service period of the award.

The Company granted a total of 451,400 restricted stock unit (RSUs) awards and 230,000 SARs during the first quarter of 2015. In the same period, the Company did not grant any stock options. The Company granted 611,500 restricted stock unit awards and did not grant any SARs or stock options during the first quarter of 2014.

Share-based compensation expense was included in the Company’s Condensed Consolidated Statements of Operations as follows:



	Fiscal quarter ended
(In thousands)	Jun 28, 2014		Jun 29, 2013
Cost of sales	$	169	$	185
Selling, service and administration	865		2,094
Research, development and engineering	296		355
Total share-based compensation expense	$	1,330	$	2,634

No share-based compensation costs were capitalized in the first quarter of 2015. As of June 28, 2014, the Company had $7.4 million of total unrecognized share-based compensation costs, net of estimated forfeitures, which are expected to be recognized over a weighted average period of 2.3 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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