INCENTIVE COMPENSATION

3 Months Ended

Mar. 30, 2014

INCENTIVE COMPENSATION [Abstract]

INCENTIVE COMPENSATION

13. 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 $2.9 million in costs related to the STIP at March 30, 2014 related to cash bonus awards that could potentially be awarded during the remainder of 2014 and 2015.

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 March 30, 2014, we have reserved approximately 6.6 million shares of common stock for future issuance under the LTIP.

The following awards existed during the thirteen weeks ended March 30, 2014:

							Estimated
Award			Award		Vesting		Forfeiture		Settlement
Type		Benefit Plan	Quantity	Grant Date	Condition	Vesting Date	Rate		Method
		Employment
	RSA	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	9.66	%	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
	RSU	LTIP	462,518	February 19, 2014	Service	December 31, 2016	13.49	%	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:

	Thirteen Weeks Ended
	March 30, 2014		March 31, 2013
	(In thousands)
Share-based compensation cost:
Cost of sales	$	19	$	57
Selling, general and administrative expense		1,003		491
Total	$	1,022	$	548
Income tax benefit	$	275	$	126

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

	Thirteen Weeks Ended March 30, 2014				Thirteen Weeks Ended March 31, 2013
			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	203		$	6.59	273		$	6.54
Granted	-			-	30			8.72
Vested	(100	)		7.10	(100	)		7.10
Outstanding at end of period	103		$	6.09	203		$	6.59
RSUs:
Outstanding at beginning of period	729		$	8.81	-		$	-
Granted	462			16.70	815			8.820
Vested	-			-	-			-
Forfeited	(24	)		8.89	-			-
Outstanding at end of period	1,167		$	11.93	815		$	8.82

The total fair value of shares vested during each of the thirteen weeks ended March 30, 2014 and March 31, 2013 was $710 thousand.

At March 30, 2014, the total unrecognized compensation cost related to all nonvested awards was $11.1 million. That cost is expected to be recognized over a weighted average period of 2.10 years.

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