INCENTIVE COMPENSATION

6 Months Ended

Jun. 26, 2016

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 $12.6 million in costs related to the STIP at June 26, 2016 related to cash bonus awards that could potentially be awarded during the remainder of 2016 and 2017.

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 June 26, 2016, we have reserved approximately 5.1 million shares of common stock for future issuance under the LTIP.

The following awards were outstanding during the twenty-six weeks ended June 26, 2016:

Award Type	Benefit Plan	Awards Granted	Grant Date	Grant Date Fair Value per Award(a)	Vesting Condition	Vesting Date	Estimated Forfeiture Rate		Awards Forfeited to Date	Settlement Method
RSU	LTIP	449,217	02/19/2014	16.70	Service	12/31/2016	13.49	%	86,458	Stock
RSU	LTIP	269,662	03/03/2014	17.18	Performance / Service	12/31/2017	12.34	%	55,516	Stock
RSU	LTIP	158,226	02/26/2015	27.51	Performance / Service	12/31/2018	(b)		158,226	Stock
RSU	LTIP	251,136	03/30/2016	25.36	Performance / Service	12/31/2019	(c)		—	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) Performance conditions associated with these awards were not satisfied. Therefore, 100% of the awards were forfeited.

(c) 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				Twenty-Six Weeks Ended
	June 26, 2016		June 28, 2015		June 26, 2016		June 28, 2015
	(In thousands)
Share-based compensation cost:
Cost of sales	$	162	$	152	$	261	$	265
Selling, general and administrative expense	827		319		1,608		1,003
Total	$	989	$	471	$	1,869	$	1,268
Income tax benefit	$	293	$	116	$	550	$	359

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

	Twenty-Six Weeks Ended June 26, 2016				Twenty-Six Weeks Ended June 28, 2015
	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
Vested	—		—		(15	)	8.72
Forfeited	—		—		(15	)	8.72
Outstanding at end of period	—		$	—	—		$	—
RSUs:
Outstanding at beginning of period	774		$	18.78	1,120		$	11.97
Granted	251		25.36		428		21.00
Vested	—		—		(671	)	8.81
Forfeited	(193	)	24.51		(85	)	18.51
Outstanding at end of period	832		$	19.44	792		$	18.83

The total fair value of awards vested during the twenty-six weeks ended June 28, 2015 was $22.4 million. No awards vested during the twenty-six weeks ended June 26, 2016.

At June 26, 2016, the total unrecognized compensation cost related to all nonvested awards was $9.6 million. That cost is expected to be recognized over a weighted average period of 2.72 years.

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