INCENTIVE COMPENSATION

9 Months Ended

Sep. 29, 2013

INCENTIVE COMPENSATION [Abstract]

INCENTIVE COMPENSATION

12. 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 $12.5 million in costs related to the STIP at September 29, 2013 related to cash bonus awards that could potentially be awarded during the remainder of 2013 and 2014.

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 September 29, 2013, we have reserved approximately 6.6 million shares of common stock for future issuance under the LTIP.

The following awards existed during the thirty-nine weeks ended September 29, 2013:

						Estimated
Award		Award		Vesting		Forfeiture		Settlement
Type	Benefit Plan	Quantity	Grant Date	Condition	Vesting Date	Rate		Method
RSA	Employment Agreement	100,000	January 14, 2011	Service	January 3, 2013	-	%	Stock
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	9.6559	%	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

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

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 29, 2013		September 23, 2012		September 29, 2013		September 23, 2012
	(In thousands)
Share-based compensation costs:
Cost of goods sold	$	102	$	-	$	255	$	-
Selling, general and administrative               expenses		711		166		2,160		464
Total	$	813	$	166	$	2,415	$	464
Income tax benefit	$	151	$	-	$	488	$	-

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

	Thirty-Nine Weeks Ended
	September 29, 2013				September 23, 2012
			Weighted Average			Weighted Average
	Number		Grant Date Fair Value		Number	Grant Date Fair Value
	(In thousands, except weighted average fair values)
RSAs:
Outstanding at beginning of period	273		$	6.54	200	$	7.10
Granted	30			8.72	-		-
Vested	(100	)		7.10	-		-
Outstanding at end of period	203		$	6.59	200	$	7.10
RSUs:
Outstanding at beginning of period	-		$	-	-	$	-
Granted	815			8.82	-		-
Forfeited	(72	)		8.89	-		-
Outstanding at end of period	743		$	8.81	-	$	-

At September 29, 2013, the total unrecognized compensation cost related to all nonvested awards was $5.5 million. That cost is expected to be recognized over a weighted average period of 1.25 years.

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