Share-Based Arrangements

3 Months Ended

Mar. 28, 2014

Share-based Arrangements with Employees and Nonemployees [Abstract]

Share-based Arrangements

SHARE-BASED ARRANGEMENTS

General

The Company accounts for stock options, restricted shares and performance shares as equity awards and measures the cost of all share-based payments, including stock options, at fair value on the grant date and recognizes this cost in the statement of operations. The Company also has an employee stock purchase plan which is accounted for as a liability award.

Compensation expense for stock options and restricted shares is recognized on a straight-line basis over the vesting period of the awards. Share-based compensation expense recorded for the three-month periods ended March 28, 2014, and March 29, 2013, was $1.3 million and $1.2 million, respectively.

During the first quarter of 2014, the Company issued stock awards totaling 10,934 shares with market and performance based conditions. The Company measured the cost of these awards based on their fair value at the date of grant to the extent of the probable number of shares to be earned upon vesting. Amortization of this cost will be recorded on a straight-line basis over the requisite service period. For the remainder of the shares included in these awards, throughout the course of the requisite service period the Company will monitor the level of achievement compared to the target and adjust the number of shares expected to be earned, and the related compensation expense recorded thereafter, to reflect the updated most probable outcome. Compensation expense for these awards for the three months ended March 28, 2014, was not material.

Stock option activity was as follows:

	For the Three Months Ended
	March 28, 2014
	Options		Weighted - average exercise price
Options outstanding at beginning of period	891,932		$	28.18
Granted	186,885		$	39.22
Exercised	(78,162	)	$	23.04
Forfeited or expired	—		$	—
Options outstanding at March 28, 2014	1,000,655		$	30.64

11. SHARE-BASED ARRANGEMENTS (CONTINUED)

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The following table indicates the weighted-average assumptions used in estimating fair value:

	For the Three Months Ended
	March 28, 2014			March 29, 2013
Expected option term (years)	5.1			5.2
Expected volatility	37.5		%	45.5		%
Risk-free interest rate	1.5		%	0.9		%
Expected dividend yield	1.7		%	2.0		%
Per share fair value of options granted	$	11.60		$	12.38

Restricted Stock activity was as follows:

	For the Three Months Ended
	March 28, 2014
	Restricted  Stock Awards		Weighted- average grant date fair value
Restricted Stock outstanding at beginning of period	188,647		$	31.23
Granted	75,170		$	39.09
Vested	(62,589	)	$	28.85
Forfeited or expired	(714	)	$	28.80
Restricted Stock outstanding at March 28, 2014	200,514		$	34.92