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Share-Based Arrangements
 9 Months Ended
Sep. 26, 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 nine-month periods ended September 26, 2014, was $1.0 million and $4.3 million, respectively. Share-based compensation expense recorded for the three-month and nine-month periods ended September 27, 2013, was $1.0 million and $4.1 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 nine months ended September 26, 2014, was not material.

Stock option activity was as follows:
 
 
For the Three Months Ended
 
For the Nine Months Ended
 
 
September 26, 2014
 
September 26, 2014
 
 
Options
 
Weighted - average
exercise price
 
Options
 
Weighted - average
exercise price
Options outstanding at beginning of period
 
932,812

 
$
31.05

 
891,932

 
$
28.18

Granted
 
—

 
$
—

 
186,885

 
$
39.22

Exercised
 
(4,086
)
 
$
13.97

 
(144,146
)
 
$
23.28

Forfeited or expired
 
(5,536
)
 
$
36.77

 
(11,481
)
 
$
35.68

Options outstanding at September 26, 2014
 
923,190

 
$
31.09

 
923,190

 
$
31.09



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 Nine Months Ended
 
 
September 26,
2014
 
September 27,
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 September 26, 2014, and September 27, 2013.

Restricted Stock Award and Restricted Stock Unit activity was as follows:
 
 
For the Three Months Ended
 
For the Nine Months Ended
 
 
September 26, 2014
 
September 26, 2014
 
 
Restricted  Stock
 
Weighted-
average grant
date fair value
 
Restricted  Stock
 
Weighted-
average grant
date fair value
Restricted Stock outstanding at beginning of period
 
208,438

 
$
36.27

 
188,647

 
$
31.83

Granted
 
—

 
$
—

 
111,071

 
$
39.89

Vested
 
(100
)
 
$
23.75

 
(84,354
)
 
$
31.63

Forfeited or expired
 
(9,765
)
 
$
36.58

 
(16,791
)
 
$
33.49

Restricted Stock outstanding at September 26, 2014
 
198,573

 
$
36.28

 
198,573

 
$
36.28