Stock-Based Compensation

9 Months Ended

Oct. 02, 2015

The components and classification of stock-based compensation expense were as follows (in thousands):



	Three Months Ended				Nine Months Ended
	October 2, 2015		October 3, 2014		October 2, 2015		October 3, 2014
Stock options	$	697	$	595	$	1,979	$	1,811
Restricted stock and restricted stock units	1,701		1,850		5,081		5,008
401(k) Plan stock contribution	674		1,357		1,984		3,712
Total stock-based compensation expense	$	3,072	$	3,802	$	9,044	$	10,531

Cost of sales	$	685	$	1,129	$	2,039	$	3,187
Selling, general and administrative expenses	1,981		1,951		5,890		5,872
Research, development and engineering costs, net	361		429		1,070		1,179
Other operating expenses	45		293		45		293
Total stock-based compensation expense	$	3,072	$	3,802	$	9,044	$	10,531

The weighted average fair value and assumptions used to value options granted are as follows:

The following table summarizes time and performance-vested stock option activity:



	Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In Years)	Aggregate Intrinsic Value (In Millions)
Outstanding at January 2, 2015	1,590,337		$	25.17
Granted	301,547		49.20
Exercised	(257,316	)	23.27
Forfeited or expired	(37,302	)	39.59
Outstanding at October 2, 2015	1,597,266		$	29.67	6.1	$	45.9
Exercisable at October 2, 2015	1,165,675		$	24.56	5.1	$	39.5

The following table summarizes time-vested restricted stock and restricted stock unit activity:

The following table summarizes performance-vested restricted stock and restricted stock unit activity:



	Performance- Vested Activity		Weighted Average Fair Value
Nonvested at January 2, 2015	716,163		$	19.57
Granted	179,940		32.92
Vested	(270,198	)	15.30
Forfeited	(40,713	)	25.99
Nonvested at October 2, 2015	585,192		$	25.20