Share-Based Compensation

6 Months Ended

Sep. 29, 2012

Share-Based Compensation

4. 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 550,500 restricted stock unit awards and 5,000 stock options but did not grant any SARs during the first two quarters of 2013. The Company granted a total of 465,900 restricted stock unit awards and 194,000 SARs during the first two quarters of 2012, but did not grant any stock options in that period.

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

	Fiscal quarter ended				Two fiscal quarters ended
(In thousands)	Sep 29, 2012		Oct 1, 2011		Sep 29, 2012		Oct 1, 2011
Cost of sales	$	217	$	261	$	433	$	557
Selling, service and administration		1,017		1,599		3,278		5,537
Research, development and engineering		666		537		1,166		1,083
Total share-based compensation expense	$	1,900	$	2,397	$	4,877	$	7,177

As of September 29, 2012, no share-based compensation expense was capitalized. The Company has $11.6 million of total unrecognized share-based compensation costs, net of estimated forfeitures, which are expected to be recognized over a weighted-average period of 2.1 years.