STOCK-BASED COMPENSATION

9 Months Ended

Oct. 03, 2015

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 8STOCK-BASED COMPENSATION

During the nine months ended October 3, 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 $19.06 and $7.60, 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
	October 3,		September 27,		October 3,		September 27,
(In thousands)	2015		2014		2015		2014
Cost of sales	$	367	$	271	$	1,048	$	762
Selling, general and administrative expense	2,490		2,508		7,812		6,809
Research and development expense	374		362		1,198		1,017
	$	3,231	$	3,141	$	10,058	$	8,588

At October 3, 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 $18.3 million, net of estimated forfeitures.  This future compensation expense will be amortized over a weighted-average period of 1.9 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 October 3, 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 October 3, 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	30	$	13.86	0.3	$	—
Stock appreciation rights outstanding	2,354	$	15.61	4.4	$	2,197
Stock appreciation rights exercisable	1,328	$	13.88	3.2	$	2,187