Share-Based Compensation

6 Months Ended

Oct. 01, 2016

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

The Company's share-based compensation consists of stock-settled stock appreciation rights (SARs), restricted stock unit awards with a service condition (time-based RSUs), restricted stock unit awards with a performance condition (performance-based RSUs), restricted stock unit awards with a market condition (market-based RSUs) and an employee stock purchase plan.

The Company recognizes expense related to the fair value of SARs and employee stock purchase plan using the Black-Scholes model to estimate the fair value of awards on the date of grant. 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 fair value of time-based RSUs and performance-based RSUs are measured on the grant date based on the market value of our common stock. The market-based RSUs must achieve the total shareholder return (TSR) measures in order for the awards to vest, and the grant date fair value of the awards is calculated using a Monte Carlo simulation model.

The Company recognizes compensation expense for all share-based compensation awards, net of estimated forfeitures, on a straight-line basis over the requisite service period of the award. Expense for performance-based RSUs is recognized based on the probability of achievement of the performance criteria. The compensation cost for market-based RSUs that reference a TSR measure is recognized over the related service period, even if the market condition is never satisfied.

The Company granted a total of 709,000 time-based RSUs, 195,000 market-based RSUs and 90,000 performance-based RSUs during the first two quarters of 2017, but did not grant any SARs. Grants for the second quarter of 2017 included 152,000 time-based RSUs and 90,000 performance-based RSUs granted to the employees of the Company who were hired as a part of the Visicon acquisition.

Share-based compensation expense under the stock incentive plans is included in the Company’s Condensed Consolidated Statements of Operations as follows:



	Fiscal quarter ended				Two fiscal quarters ended
(In thousands)	October 1, 2016		September 26, 2015		October 1, 2016		September 26, 2015
Cost of sales	$	136	$	114	$	256	$	243
Selling, general and administrative	1,205		746		2,182		1,461
Research, development and engineering	177		206		371		425
Total share-based compensation expense	$	1,518	$	1,066	$	2,809	$	2,129

The Company does not capitalize share-based compensation costs. As of October 1, 2016, the Company had $9.7 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.