STOCK-BASED COMPENSATION

6 Months Ended

Jul. 04, 2015

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 9STOCK-BASED COMPENSATION

During the six months ended July 4, 2015, the Company granted 0.5 million restricted stock units and 0.5 million stock-settled stock appreciation rights with weighted average grant date fair values of $19.11 and $7.62, 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				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Cost of sales	$	285	$	279	$	681	$	491
Selling, general and administrative expenses	2,126		2,465		5,322		4,301
Research and development expense	332		366		824		655
	$	2,743	$	3,110	$	6,827	$	5,447

At July 4, 2015, 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 $20.7 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 July 4, 2015 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 July 4, 2015, the Company’s outstanding and exercisable stock options and stock appreciation rights, and the weighted average exercise price or base value, the weighted average remaining contractual life and the aggregate intrinsic value thereof, were as follows:

		Weighted
		Average		Weighted
		Exercise		Average	Aggregate
	Number of	Price or		Remaining	Intrinsic
	Shares	Base		Contractual	Value
	(In thousands)	Value		Life (Years)	(In thousands)
Stock options outstanding and exercisable	34	$	13.78	0.5	$	170
Stock appreciation rights outstanding	2,370	$	15.62	4.7	$	7,661
Stock appreciation rights exercisable	1,336	$	13.89	3.5	$	6,532