e Company's employee share-based compensation plans consist of its 2004 Stock Incentive Plan (the 2004 Plan) and the ESPP. The 2004 plan, as amended, has been approved to reserve a total of 4,750,000 shares of common stock for issuance to employees and directors of the Company. It allows for grants of stock options, stock appreciation rights; stock bonuses; RSUs including time-based, performance-based, and market-based RSU awards; and dividend equivalents. The ESPP, as approved, reserves 5,400,000 shares of common stock for issuance to participating employees.

Eligible employees may elect to contribute up to 15 percent of their base wage and commissions during each pay period. As of the second quarter of 2018, new offerings are for six month periods with a maximum of 1,000 shares per purchase date with each new offering beginning on February 15 or August 15 of each year. At the end of each offering period, the purchase price is determined and the accumulated funds are used to automatically purchase shares of common stock. The purchase price per share is equal to 85 percent of the lower of the fair market value of the common stock on (a) the first day of the offering period or (b) the date of purchase. Previously, employees could purchase up to a maximum of 500 shares per purchase date and the ESPP provided for separate overlapping twenty-four month offerings starting every three months. The Company has a small minority of employees still purchasing under the three month offering period plan.

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. RSU's grant the right to receive a set number of shares on the vest date, assuming all criteria have been met and continued service through the vest date. Time-based RSU's vest solely based on continued service through the vest date. Performance-based RSU's are earned based on specifically stated performance criteria in the grant agreement. Market-based RSUs must achieve the TSR measures based on the Company's stock performance relative to a stated index. See Note 2: Summary of Significant Accounting Policies for further discussion concerning the Company's policies for recognizing compensation expense for these awards.

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



(In thousands)	2018		2017		2016
Cost of sales	$	277	$	503	$	445
Selling, general and administration	3,657		5,197		3,004
Research, development and engineering	679		737		783
Share-based compensation expense	$	4,613	$	6,437	$	4,232

The total amount of net cash used related to stock plan awards in 2018 was $0.7 million, in 2017 and 2016 net cash received was $0.5 million and $0.7 million. All stock plan awards are settled with newly issued shares.

No share-based compensation costs were capitalized during 2018, 2017 or 2016. As of March 31, 2018, 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 2.1 years.

Valuation Assumptions

The Black-Scholes pricing model is utilized to determine the fair value of SARs granted and ESPP issued. No SARs were granted in 2018 and 2017.

The following weighted average assumptions were used in calculating the grant date fair value of SARs during the periods presented:



	2018		2017		2016
Risk-free interest rate	—	%	—	%	1.94	%
Expected lives	0.0 years		0.0 years		7.4 years
Expected volatility	—	%	—	%	47	%

The following weighted average assumptions were used to estimate the fair value of ESPP shares issued in the periods presented:



	2018		2017		2016
Risk-free interest rate	1.37	%	0.68	%	0.34	%
Expected lives	0.6 years		1.1 years		1.1 years
Expected volatility	55	%	45	%	35	%

The risk-free interest rates used are based on the U.S. Treasury yields over the expected terms. The fair value of time-based RSUs and performance-based RSUs are measured on the grant date based on the market value of the Company's common stock. The market-based RSUs must achieve the TSR measures in order for the awards to vest, and the grant date fair value of the awards is calculated using a Monte Carlo simulation model. The assumptions used in the Monte Carlo simulation includes the risk free rate, expected divided yield, expected term, and possible future stock prices over the performance period based on historical stock and market prices.

At March 31, 2018, the Company had 6,767,223 shares of its common stock reserved for issuance under all of the above plans combined. Of those shares, 1,606,815 are subject to issuance under currently outstanding stock options, SARs and stock awards and 5,160,408 shares, including 999,091 shares available for issuance under the ESPP, are available for future grants. In addition to standard forfeitures, 817 thousand shares were returned to the pool of shares available for issuance due to SAR exercises.

The total fair value of stock option and SAR awards granted and vested during the period, restricted stock unit awards granted and vested during the period, the intrinsic value of stock options and SARs exercised during the period and the total grant date fair value were:



(In thousands, except per share data)	2018		2017		2016
Stock-Option and SAR Awards:
Grant date fair value per share	$	—	$	—	$	2.89
Total fair value of options and SARs granted	—		—		1,350
Total fair value of options and SARs vested	755		820		336
Total intrinsic value of options and SARs exercised	6,641		17		1
Restricted Stock Unit Awards:
Grant date fair value per share	10.59		6.71		5.52
Total fair value of awards granted	7,084		11,382		4,072
Total fair value of awards vested	4,945		3,693		4,324
Employee Stock Purchase Plan:
Grant date fair value per share	2.14		1.40		1.22
Total grant date fair value	613		473		394

Share-Based Payment Award Activity

Information with respect to stock option and SAR activity was as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding at March 28, 2015	2,229,046		$	12.52
Granted	467,000		5.63
Exercised	(2,500	)	6.71
Expired or forfeited	(537,946	)	16.53
Outstanding at April 2, 2016	2,155,600		$	10.03	5.35	$	904
Granted	—		—
Exercised	(22,500	)	6.23
Expired or forfeited	(191,097	)	19.20
Outstanding at April 1, 2017	1,942,003		$	9.17	4.82	$	634
Granted	—		—
Exercised	(1,280,478	)	8.17
Expired or forfeited	(548,000	)	11.92
Outstanding at March 31, 2018	113,525		$	7.26	4.17	$	1,371
Vested and expected to vest at March 31, 2018	113,140		$	7.26	4.16	$	1,365
Exercisable at March 31, 2018	89,525		$	7.64	3.42	$	1,046

Information with respect to time-based restricted stock unit awards activity was as follows:



	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding at March 28, 2015	835,841		$	8.90
Awarded	737,200		5.52
Vested	(360,349	)	11.75
Forfeited	(130,888	)	7.66
Outstanding at April 2, 2016	1,081,804		$	6.77	1.93	$	7,781
Awarded	1,051,445		6.63
Vested	(483,239	)	7.64
Forfeited	(42,093	)	6.67
Outstanding at April 1, 2017	1,607,917		$	6.41	2.04	$	11,168
Awarded	446,400		9.81
Vested	(757,462	)	6.53
Forfeited	(396,830	)	6.83
Outstanding at March 31, 2018	900,025		$	7.82	2.39	$	17,397

Information with respect to performance-based and market-based restricted stock unit awards activity was as follows:



	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding at March 28, 2015	593,704		$	7.88
Awarded	—		—
Vested⁽¹⁾	(5,592	)	14.64
Forfeited	(187,125	)	10.84
Outstanding at April 2, 2016	400,987		$	6.93	1.00	$	2,928
Awarded	643,565		6.85
Vested⁽¹⁾	—		—
Forfeited	(400,987	)	6.93
Outstanding at April 1, 2017	643,565		$	6.85	2.43	$	4,409
Awarded	222,400		12.17
Vested⁽¹⁾	—		—
Forfeited	(272,700	)	7.27
Outstanding at March 31, 2018	593,265		$	8.76	1.78	$	11,468


(1)	Zero performance-based or market-based shares were earned in 2017 and 2016. Based on 2018 performance, the Company believes 182,671 market-based shares and zero performance-based shares were earned.