Share-Based Compensation

3 Months Ended

Jun. 27, 2015

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 613,700 restricted stock unit (RSUs) awards and 467,000 SARs during the first quarter of 2016. In the same period, the Company did not grant any stock options. The Company granted 451,400 RSUs and 230,000 SARs during the first quarter of 2015.

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



	Fiscal quarter ended
(In thousands)	Jun 27, 2015		Jun 28, 2014
Cost of sales	$	129	$	169
Selling, general and administrative	715		865
Research, development and engineering	219		296
Total share-based compensation expense	$	1,063	$	1,330

No share-based compensation costs were capitalized in the first quarter of 2016. As of June 27, 2015, the Company had $10.2 million of total unrecognized share-based compensation costs, net of estimated forfeitures, which are expected to be recognized over a weighted average period of 2.0 years. The amounts shown in the table above for the quarter ended June 27, 2015, do not include $324 thousand in expense related to acquisitions. Refer to Note 5 Business Acquisitions for discussion of stock amounts considered compensation related to acquisitions.