INCENTIVE COMPENSATION

6 Months Ended

Jun. 29, 2014

INCENTIVE COMPENSATION [Abstract]

INCENTIVE COMPENSATION

INCENTIVE COMPENSATION

The Company sponsors a short-term incentive plan that provides the grant of either cash or share-based bonus awards payable upon achievement of specified performance goals (the “STIP”). Full-time, salaried exempt employees of the Company and its affiliates who are selected by the administering committee are eligible to participate in the STIP. The Company has accrued $15.3 million in costs related to the STIP at June 29, 2014 related to cash bonus awards that could potentially be awarded during the remainder of 2014 and 2015.

The Company also sponsors a performance-based, omnibus long-term incentive plan that provides for the grant of a broad range of long-term equity-based and cash-based awards to the Company's officers and other employees, members of the Board and any consultants (the “LTIP”). The equity-based awards that may be granted under the LTIP include “incentive stock options,” within the meaning of the Internal Revenue Code, nonqualified stock options, stock appreciation rights, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). At June 29, 2014, we have reserved approximately 6.6 million shares of common stock for future issuance under the LTIP.

The following awards existed during the twenty-six weeks ended June 29, 2014:

Award Type	Benefit Plan	Award Quantity	Grant Date	Vesting Condition	Vesting Date	Estimated Forfeiture Rate		Settlement Method
RSA	Employment Agreement	100,000	January 14, 2011	Service	January 3, 2014	—	%	Stock
RSA	LTIP	72,675	August 27, 2012	Service	April 27, 2014	—	%	Stock
RSU	LTIP	608,561	February 4, 2013	Service	December 31, 2014	9.66	%	Stock
RSA	LTIP	15,000	February 25, 2013	Service	February 24, 2015	—	%	Stock
RSA	LTIP	15,000	February 25, 2013	Service	February 24, 2016	—	%	Stock
RSU	LTIP	206,933	February 26, 2013	Service	December 31, 2014	—	%	Stock
RSU	LTIP	462,518	February 19, 2014	Service	December 31, 2016	13.49	%	Stock

The fair value of each RSA and RSU granted represents the closing price of the Company's common stock on the respective grant date.

Compensation costs and the income tax benefit recognized for our share-based compensation arrangements are included below:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
	(In thousands)
Share-based compensation cost:
Cost of sales	$	152	$	96	$	171	$	153
Selling, general and administrative expense	1,203		959		2,206		1,450
Total	$	1,355	$	1,055	$	2,377	$	1,603
Income tax benefit	$	241	$	211	$	516	$	337

The Company’s RSA and RSU activity is included below:

	Twenty-Six Weeks Ended June 29, 2014				Twenty-Six Weeks Ended June 30, 2013
	Number		Weighted Average Grant Date Fair Value		Number		Weighted Average Grant Date Fair Value
	(In thousands, except weighted average fair values)
RSAs:
Outstanding at beginning of period	203		$	6.59	273		$	6.54
Granted	—		—		30		8.72
Vested	(173	)	6.22		(100	)	7.10
Outstanding at end of period	30		$	8.72	203		$	6.59
RSUs:
Outstanding at beginning of period	729		$	8.81	—		$	—
Granted	462		16.70		815		8.82
Vested	—		—		—		—
Forfeited	(24	)	8.89		—		—
Outstanding at end of period	1,167		$	11.93	815		$	8.82

The total fair value of shares vested during the twenty-six weeks ended June 29, 2014 and June 30, 2013 was $1.1 million and $0.7 million, respectively.

At June 29, 2014, the total unrecognized compensation cost related to all nonvested awards was $9.8 million. That cost is expected to be recognized over a weighted average period of 2.0 years.

Historically, we have issued new shares to satisfy award conversions.