INCENTIVE COMPENSATION

12 Months Ended

Dec. 28, 2014

Disclosure of Compensation Related Costs, Share-based Payments [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 $35.0 million in costs related to the STIP at December 28, 2014 related to cash bonus awards that could potentially be awarded during 2016.

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 IRC, nonqualified stock options, stock appreciation rights, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). At December 28, 2014, we have reserved approximately 6.6 million shares of common stock for future issuance under the LTIP.

The following awards existed during 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:

	2014		2013		2012
	(In thousands)
Share-based compensation cost:
Cost of goods sold	$	395	$	361	$	—
Selling, general and administrative expenses	4,533		2,984		684
Total	$	4,928	$	3,345	$	684
Income tax benefit	$	1,326	$	471	$	28

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

	2014				2013				2012
	Number		Weighted Average Grant Date Fair Value		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 year	203		$	6.59	273		$	6.54	200	$	7.10
Granted	—		—		30		8.72		73	5.00
Vested	(173	)	6.62		(100	)	7.10		—	—
Outstanding at end of year	30		$	8.72	203		$	6.59	273	$	6.54
RSUs:
Outstanding at beginning of year	729		$	8.81	—		$	—	—	$	—
Granted	463		16.70		815		8.82		—	—
Vested	—		—		—		—		—	—
Forfeited	(72	)	10.34		(86	)	8.89		—	—
Outstanding at end of year	1,120		$	11.97	729		$	8.81	—	$	—

The total fair value of shares vested in 2014 and 2013 was $3.2 million and 0.7 million, respectively. No shares vested in 2012.

At December 28, 2014, the total unrecognized compensation cost related to all nonvested awards was $5.9 million. That cost is expected to be recognized over a weighted average period of 1.99 years.

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