Stockholders' Equity and Stock Compensation Plans

3 Months Ended

Dec. 29, 2013

Stockholders' Equity and Stock Compensation Plans

Stockholders' Equity and Stock Compensation Plans

7. Stockholders’ Equity and Stock Compensation Plans

We recognize the fair value of our stock-based compensation awards as compensation expense on a straight-line basis over the requisite service period in which the award vests.  Stock-based compensation expense for the first quarters of fiscal 2014 and 2013 was $2.3 million and $2.5 million, respectively.  The majority of these amounts was included in “Selling, general and administrative (“SG&A”) expenses” in our condensed consolidated statements of income.  In the first quarter of fiscal 2014, we granted 354,238 stock options with exercise prices of $28.58 - $28.68 per share and an estimated weighted-average fair value of $9.36 per share.  In addition, we awarded 117,067 shares of restricted stock to our non-employee directors and executive officers at the fair value of $28.58 per share on the award date.  All of these shares are performance-based and vest, if at all, over a three-year period.  The number of shares that ultimately vest is based on the growth in our diluted earnings per share.  Additionally, we awarded 224,618 restricted stock units (“RSUs”) to our non-employee directors, executive officers and employees at the fair value of $28.58 per share on the award date.  All of the executive officer and employee RSUs have time-based vesting over a four-year period, and the non-employee director RSUs vest after one year.