INCENTIVE COMPENSATION

12 Months Ended

Dec. 29, 2013

INCENTIVE COMPENSATION [Abstract]

INCENTIVE COMPENSATION

14.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 $25.8 million in costs related to the STIP at December 29, 2013 related to cash bonus awards that could potentially be awarded during 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 IRC, nonqualified stock options, stock appreciation rights, restricted stock awards ("RSAs") and restricted stock units ("RSUs"). At December 29, 2013, we have reserved approximately 6.6 million shares of common stock for future issuance under the LTIP.

The following awards existed during 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

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:

	2013		2012		2011
	(In thousands)
Share-based compensation cost:
Cost of goods sold	$	361	$	-	$	-
Selling, general and administrative expenses		2,984		684		568
Total	$	3,345	$	684	$	568
Income tax benefit	$	471	$	28	$	-

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

	2013				2012			2011
			Weighted			Weighted			Weighted
			Average Grant			Average Grant			Average Grant
	Number		Date Fair Value		Number	Date Fair Value		Number	Date Fair Value
	(In thousands, except weighted average fair values)
RSAs:
Outstanding at beginning of year	273		$	6.54	200	$	7.10	-	$	-
Granted	30			8.72	73		5.00	200		7.10
Vested	(100	)		7.10	-		-	-		-
Outstanding at end of year	203		$	6.59	273	$	6.54	200	$	7.10
RSUs:
Outstanding at beginning of year	-		$	-	-	$	-	-	$	-
Granted	815			8.82	-		-	-		-
Vested	-			-	-		-	-		-
Forfeited	(86	)		8.89	-		-	-		-
Outstanding at end of year	729		$	8.81	-	$	-	-	$	-

     The total fair value of shares vested in 2013 was $710 thousand. No shares vested in 2012 or 2011.

     At December 29, 2013, the total unrecognized compensation cost related to all nonvested awards was $4.5 million. That cost is expected to be recognized over a weighted average period of 1.03 years.

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