Share-Based Arrangements

6 Months Ended

Jun. 27, 2014

Share-based Arrangements with Employees and Nonemployees [Abstract]

Share-based Arrangements

SHARE-BASED ARRANGEMENTS

General

The Company accounts for stock options, restricted stock awards, restricted stock units 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, restricted stock awards and restricted stock units is recognized on a straight-line basis over the vesting period of the awards. Share-based compensation expense recorded for the three-month and six-month periods ended June 27, 2014, was $2.0 million and $3.3 million, respectively. Share-based compensation expense recorded for the three-month and six-month periods ended June 28, 2013, was $1.9 million and $3.1 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. 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 and six months ended June 27, 2014, was not material.

Stock option activity was as follows:

	For the Three Months Ended				For the Six Months Ended
	June 27, 2014				June 27, 2014
	Options		Weighted - average exercise price		Options		Weighted - average exercise price
Options outstanding at beginning of period	1,000,655		$	30.64	891,932		$	28.18
Granted	—		$	—	186,885		$	39.22
Exercised	(61,898	)	$	24.19	(140,060	)	$	23.55
Forfeited or expired	(5,945	)	$	34.67	(5,945	)	$	34.67
Options outstanding at June 27, 2014	932,812		$	31.05	932,812		$	31.05

13. 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 Six Months Ended
	June 27, 2014			June 28, 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

There were no options granted for the three-month periods ended June 27, 2014 and June 28, 2013.

Restricted Stock Award and Restricted Stock Unit activity was as follows:

	For the Three Months Ended				For the Six Months Ended
	June 27, 2014				June 27, 2014
	Restricted  Stock		Weighted- average grant date fair value		Restricted  Stock		Weighted- average grant date fair value
Restricted Stock outstanding at beginning of period	200,514		$	35.49	188,647		$	31.83
Granted	35,901		$	41.56	111,071		$	39.89
Vested	(21,665	)	$	39.70	(84,254	)	$	31.64
Forfeited or expired	(6,312	)	$	30.66	(7,026	)	$	30.47
Restricted Stock outstanding at June 27, 2014	208,438		$	36.24	208,438		$	36.24