STOCK-BASED COMPENSATION

9 Months Ended

Sep. 25, 2016

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



7.	STOCK-BASED COMPENSATION

The Company accounts for stock-based compensation in accordance with fair value recognition provisions. The Company recorded compensation expense of $1.7 million and $1.2 million for the third quarters ended September 25, 2016 and September 27, 2015, respectively, for its stock-based compensation plans on the condensed consolidated statements of income. For the first nine months of 2016 and 2015, the Company recorded $4.8 million and $3.4 million, respectively.

The Company estimates the fair value of (i) all stock grants as of the grant date using the closing price per share of the Company’s common stock on such date, and (ii) all stock option and stock appreciation rights awards as of the grant date by applying the Black-Scholes option pricing model.

For the full year 2015, the Board of Directors (the “Board”) approved various share grants under the Company’s 2009 Omnibus Incentive Plan (the “Plan”) totaling 145,690 shares in the aggregate, of which grants of 140,440 shares were approved in the first nine months of 2015. In addition, on March 30, 2015, the Board granted 22,001 restricted stock units (“RSUs”).

In the first nine months of 2016, the Board approved various share grants under the Plan totaling 154,981 shares in the aggregate. In addition, on February 23, 2016, the Board granted 22,000 RSUs.

As of September 25, 2016, there was approximately $8.7 million of total unrecognized compensation cost related to stock-based compensation arrangements granted under incentive plans. That cost is expected to be recognized over a weighted-average period of 15.8 months

At the beginning of the Company's fiscal fourth quarter of 2016, the Board approved the issuance of 80,592 shares that may be issued upon the exercise of stock options that were granted on September 26, 2016, and the issuance of 80,592 shares that may be issued upon the exercise of stock appreciation rights that were granted on September 26, 2016.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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