Share-Based Compensation

9 Months Ended

Dec. 28, 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 621,000 restricted stock unit awards during the first three quarters of 2014, but did not grant any stock options or SARs. The Company granted 552,500 restricted stock unit awards and 5,000 stock options during the first three quarters of 2013, but did not grant any SARs.

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

	Fiscal quarter ended				Three fiscal quarters ended
(In thousands)	Dec 28, 2013		Dec 29, 2012		Dec 28, 2013		Dec 29, 2012
Cost of sales	$	184	$	202	$	558	$	635
Selling, service and administration	728		867		3,488		4,145
Research, development and engineering	350		413		1,084		1,579
Total share-based compensation expense	$	1,262	$	1,482	$	5,130	$	6,359

No share-based compensation costs were capitalized in the first three quarters of 2014. As of December 28, 2013, the Company had $9.2 million of total unrecognized share-based compensation costs, net of estimated forfeitures, which are expected to be recognized over a weighted average period of 1.9 years.