INCENTIVE COMPENSATION (Tables)

6 Months Ended

Jul. 01, 2018

Schedule of Awards

The following awards were outstanding during the twenty-six weeks ended July 1, 2018:

Award Type

Benefit

Plan

Awards Granted

Grant

Date

Grant Date Fair Value per Award

Vesting Condition

Vesting Date

Awards Forfeited to Date

Settlement Method

RSU

LTIP

389,424

01/19/2017

18.38

Performance / Service

^(a)

389,424

^(a)

Stock

RSU

LTIP

410,000

02/14/2018

25.59

Service

01/01/2019

—

Stock

RSU

LTIP

161,215

03/01/2018

24.93

Service

^(b)

5,097

Stock

RSU

LTIP

266,478

03/01/2018

24.93

Performance / Service

^(c)

22,548

Stock

RSU

LTIP

11,144

05/10/2018

21.54

^(d)

—

Stock


(a)	Performance conditions associated with these awards were not satisfied. Therefore, 100% of the awards were forfeited during the twenty-six weeks ended July 1, 2018.


(b)	These restricted stock units vest in ratable tranches on December 31, 2018, December 31, 2019 and December 31, 2020. Expected compensation cost related to these units totals $4.0 million based on a closing stock price for the Company’s common stock of $24.93 per share on March 1, 2018. Compensation cost will be amortized to profit/loss over the remaining vesting period.

(c)

If performance conditions related to the Company's 2018 operating results are satisfied, these restricted stock units vest in ratable tranches on December 31, 2019, December 31, 2020 and December 31, 2021. Expected compensation cost related to these units totals $6.6 million based on a closing stock price for the Company's common stock of $24.93 per share on March 1, 2018. Compensation cost will be amortized to profit/loss upon satisfaction of the performance conditions over the remaining vesting period.


(d)	These restricted stock units were granted to the four non-employees who currently serve on the Company's Board of Directors. Each participating director's units will vest upon his departure from the Company's Board of Directors. Compensation cost was recognized in profit/loss upon the grant date.

Schedule of Compensation Cost and Income Tax Benefit

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



	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	July 1, 2018		June 25, 2017		July 1, 2018		June 25, 2017
	(In thousands)
Share-based compensation cost:
Cost of sales	$	117	$	38	$	169	$	187
Selling, general and administrative expense	4,243		449		5,464		1,760
Total	$	4,360	$	487	$	5,633	$	1,947

Income tax benefit	$	1,061	$	184	$	1,371	$	601

Schedule of Restricted Share and Restricted Stock Unit Activity

The Company’s RSU activity is included below:



	Twenty-Six Weeks Ended July 1, 2018				Twenty-Six Weeks Ended June 25, 2017
	Number		Weighted Average Grant Date Fair Value		Number		Weighted Average Grant Date Fair Value
	(In thousands, except weighted average fair values)
Outstanding at beginning of period	389		$	18.39	906		$	20.00
Granted	849		25.20		462		18.72
Vested	—		—		(486	)	17.73
Forfeited	(417	)	18.82		(251	)	25.36
Outstanding at end of period	821		$	25.21	631		$	18.68