Share-Based Compensation

9 Months Ended

Jan. 02, 2016

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

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 (RSUs) 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 measured at the fair value of the award on the 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 705,700 RSUs and 467,000 SARs during the first three quarters of 2016, but did not grant any stock options. The Company granted 827,700 RSUs and 634,523 SARs, and zero stock options during the first three quarters of 2015.

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)	Jan 2, 2016		Dec 27, 2014		Jan 2, 2016		Dec 27, 2014
Cost of sales	$	103	$	154	$	347	$	474
Selling, general and administrative	832		629		2,291		2,096
Research, development and engineering	188		256		613		832
Total share-based compensation expense	$	1,123	$	1,039	$	3,251	$	3,402

The Company does not capitalize share-based compensation costs. As of January 2, 2016, the Company had $8.1 million of total unrecognized share-based compensation costs, net of estimated forfeitures, which are expected to be recognized over a weighted average period of 2.0 years. The amounts shown in the table above for the fiscal quarter ended January 2, 2016 and three fiscal quarters ended January 2, 2016, do not include $191 thousand and $688 thousand, respectively, in share-based compensation expense related to acquisitions. Refer to Note 5 "Business Acquisition" for discussion of stock amounts considered compensation related to acquisitions.