STOCK-BASED COMPENSATION

9 Months Ended

Sep. 27, 2014

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 9STOCK-BASED COMPENSATION

During the nine months ended September 27, 2014, the Company granted 0.6 million restricted stock units and 0.6 million stock-settled stock appreciation rights with weighted average grant date fair values of $18.31 and $7.85, respectively.

The total stock-based compensation expense included in the Company’s consolidated statements of income and comprehensive income was as follows:

	Three Months Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
(In thousands)	2014		2013		2014		2013
Cost of sales	$	271	$	233	$	762	$	686
Selling, general and administrative expenses	2,508		1,921		6,809		5,114
Research and development expense	362		291		1,017		790
	$	3,141	$	2,445	$	8,588	$	6,590

At September 27, 2014, the total compensation cost related to unvested stock-based awards granted to employees, officers and directors under the Company’s stock-based benefit plans that had not yet been recognized was $22.4 million, net of estimated forfeitures.  This future compensation expense will be amortized over a weighted-average period of 2.1 years using the straight-line attribution method.  The actual compensation expense that the Company will recognize in the future related to unvested stock-based awards outstanding at September 27, 2014 will be adjusted for actual forfeitures and will be adjusted based on the Company’s determination as to the extent to which performance conditions applicable to any stock-based awards have been or will be achieved.

At September 27, 2014, 0.2 million stock options with a weighted-average exercise price of $13.64 per share, intrinsic value of $0.6 million and remaining contractual term of 0.6 years were outstanding and were exercisable.  At September 27, 2014, 2.3 million stock-settled stock appreciation rights with a weighted-average base value of $13.94 per share, intrinsic value of $8.6 million and remaining contractual term of 4.6 years were outstanding, of which 1.2 million stock-settled stock appreciation rights with a weighted-average base value of $11.54 per share, intrinsic value of $7.0 million and remaining contractual term of 3.2 years were exercisable.