INCENTIVE COMPENSATION

12 Months Ended

Dec. 27, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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 $30.1 million in costs related to the STIP at December 27, 2015 related to cash bonus awards that could potentially be awarded during 2016.

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 27, 2015, we have reserved approximately 5.2 million shares of common stock for future issuance under the LTIP.

The following awards were outstanding during 2015:



Award Type	Benefit Plan	Awards Granted	Grant Date	Grant Date Fair Value per Award^(a)		Vesting Condition	Vesting Date	Vesting Date Fair Value per Award^(a)		Estimated Forfeiture Rate		Awards Forfeited to Date	Settlement Method
RSU	LTIP	608,561	02/04/2013	$	8.89	Service	12/31/2014	$	32.79	9.66	%	144,382	Stock
RSA	LTIP	15,000	02/25/2013	8.72		Service	02/24/2015	27.55		—	%	—	Stock
RSA	LTIP	15,000	02/25/2013	8.72		Service	02/24/2016			—	%	15,000	Stock
RSU	LTIP	206,933	02/26/2013	8.62		Service	12/31/2014	32.79		—	%	—	Stock
RSU	LTIP	462,518	02/19/2014	16.70		Service	12/31/2016			13.49	%	67,715	Stock
RSU	LTIP	269,662	03/03/2014	17.18		Performance / Service	12/31/2017			12.34	%	29,373	Stock
RSU	LTIP	158,226	02/26/2015	27.51		Performance / Service	12/31/2018			(b)		19,737	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)	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:



	2015		2014		2013
	(In thousands)
Share-based compensation cost:
Cost of goods sold	$	596	$	395	$	361
Selling, general and administrative expenses	2,379		4,533		2,984
Total	$	2,975	$	4,928	$	3,345

Income tax benefit	$	868	$	1,326	$	471

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



	2015				2014				2013
	Number		Weighted Average Grant Date Fair Value		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 year	30		$	8.72	203		$	6.59	273		$	6.54
Granted	—		—		—		—		30		8.72
Vested	—		—		(173	)	6.62		(100	)	7.10
Forfeited	(30	)	8.72		—		—		—		—
Outstanding at end of year	—		$	—	30		$	8.72	203		$	6.59

RSUs:
Outstanding at beginning of year	1,120		$	11.97	729		$	8.81	—		$	—
Granted	428		21.00		463		16.70		815		8.82
Vested	(671	)	8.81		—		—		—		—
Forfeited	(103	)	18.90		(72	)	10.34		(86	)	8.89
Outstanding at end of year	774		$	18.78	1,120		$	11.97	729		$	8.81

The total fair value of awards vested in 2015, 2014 and 2013 was $22.4 million, $3.2 million and $0.7 million, respectively.

At December 27, 2015, the total unrecognized compensation cost related to all nonvested awards was $8.8 million. That cost is expected to be recognized over a weighted average period of 2.22 years.

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