INCENTIVE COMPENSATION

3 Months Ended

Mar. 29, 2015

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 $8.6 million in costs related to the STIP at March 29, 2015 related to cash bonus awards that could potentially be awarded during the remainder of 2015 and 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 of Directors 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 March 29, 2015, we have reserved approximately 5.0 million shares of common stock for future issuance under the LTIP.

The following awards were outstanding during the thirteen weeks ended March 29, 2015:

Award Type	Benefit Plan	Awards Granted	Grant Date	Grant Date Fair Value per Award(a)		Vesting Condition	Vesting Date	Vesting Date Fair Value per Award(a)		Estimated Forfeiture Rate		Awards Forfeited to Date	Settlement Method
RSU	LTIP	608,561	02/04/2013	$	8.89	Service	12/31/2014	$	32.79	9.66	%	144,382	Stock
RSA	LTIP	15,000	02/25/2013	8.72		Service	02/24/2015	27.55		—	%	—	Stock
RSA	LTIP	15,000	02/25/2013	8.72		Service	02/24/2016			—	%	—	Stock
RSU	LTIP	206,933	02/26/2013	8.62		Service	12/31/2014	32.79		—	%	—	Stock
RSU	LTIP	462,518	02/19/2014	16.70		Service	12/31/2016			13.49	%	13,301	Stock
RSU	LTIP	269,662	03/03/2014	17.18		Performance / Service	12/31/2017			12.34	%	—	Stock
RSU	LTIP	158,226	02/26/2015	27.51		Performance / Service	12/31/2018			(b)		—	Stock

(a) The fair value of each RSA and RSU granted or vested represents the closing price of the Company's common stock on the respective grant date or vesting date.

(b) The estimated forfeiture rate for these awards will be set if or when performance conditions associated with the awards are satisfied.

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

	Thirteen Weeks Ended
	March 29, 2015		March 30, 2014
	(In thousands)
Share-based compensation cost:
Cost of sales	$	113	$	19
Selling, general and administrative expense	684		1,003
Total	$	797	$	1,022
Income tax benefit	$	243	$	275

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

	Thirteen Weeks Ended March 29, 2015				Thirteen Weeks Ended March 30, 2014
	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	30		$	8.72	203		$	6.59
Vested	(15	)	8.72		(100	)	7.10
Outstanding at end of period	15		$	8.72	103		$	6.09
RSUs:
Outstanding at beginning of period	1,120		$	11.97	729		$	8.81
Granted	428		21.00		462		16.70
Vested	(671	)	8.81		—		—
Forfeited	—		—		(24	)	8.89
Outstanding at end of period	877		$	18.80	1,167		$	11.93

The total fair value of awards vested during the thirteen weeks ended March 29, 2015 and March 30, 2014 was $22.4 million and $1.6 million, respectively.

At March 29, 2015, the total unrecognized compensation cost related to all nonvested awards was $13.0 million. That cost is expected to be recognized over a weighted average period of 2.75 years.

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