Share-Based Compensation

3 Months Ended

Jun. 29, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

The Company recognizes expense related to the fair value of its share-based compensation awards using the Black-Scholes model to estimate the fair value of awards on the date of grant, except for unvested restricted stock unit awards which are valued at the fair value of the Company's stock on the date of award. The Company recognizes compensation expense for all share-based compensation awards on a straight-line basis over the requisite service period of the award.

Stock-settled stock appreciation rights (SARs) grant the right to receive shares of the Company's stock equivalent to the increase in stock value of a specified number of shares over a specified period of time, divided by the stock price at the time of exercise. The Company uses the Black-Scholes model to estimate the fair value of SARs. Similar to options, SARs are recorded at the fair value of the award at grant date and the expense is recognized on a straight-line basis over the requisite service period of the award.

The Company granted a total of 611,500 and 189,500 restricted stock unit awards during the first quarter of 2014 and 2013, respectively. In the same periods, the Company did not grant any stock options or SARs. The increase in the number of grants made in the first quarter of 2014 over 2013, was the result of the timing of annual grants made in 2013, which occurred over the first and second quarters of 2013.

Share-based compensation expense was included in the Company’s Condensed Consolidated Statements of Operations as follows:

	Fiscal quarter ended
(In thousands)	Jun 29, 2013		Jun 30, 2012
Cost of sales	$	185	$	216
Selling, service and administration	2,094		2,261
Research, development and engineering	355		500
Total share-based compensation expense	$	2,634	$	2,977

No share-based compensation costs were capitalized in the first quarter of 2014. As of June 29, 2013, the Company had $9.9 million of total unrecognized share-based compensation costs, net of estimated forfeitures, which are expected to be recognized over a weighted average period of 2.3 years.