Shareholders' Equity

3 Months Ended

Apr. 01, 2017

Stockholders' Equity Note [Abstract]

Shareholders' Equity

SHAREHOLDERS’ EQUITY

Common Stock

The Board of Directors has approved a repurchase program of up to 3.0 million common shares of Company stock. Management is authorized to purchase shares from time to time in the open market or through privately negotiated transactions. There were no purchases under this program during the three months ended ending April 1, 2017. There are approximately2.3 millionshares of our common stock available for repurchase under this program.

Share-Based Compensation

The majority of the Company’s annual share-based incentive awards are made in the fiscal second quarter.

The Company recognized approximately $3.0 million and $3.3 million in share-based compensation expense for the three months endedApril 1, 2017 and April 2, 2016, respectively. The total income tax benefit recognized in the Consolidated Statements of Income for share-based compensation expense was $1.1 million and $1.3 million for the three months ended April 1, 2017 and April 2, 2016, respectively. The Company recognizes compensation expense on grants of share-based compensation awards on a straight-line basis over the vesting period of each award. As of April 1, 2017, total unrecognized compensation cost related to share-based compensation awards was approximately $20.7 million, net of estimated forfeitures, which the Company expects to recognize over a weighted average period of approximately 1.8 years.

Approximately 1.4 million shares were available for future grant under the 2013 Equity Incentive Plan at April 1, 2017.

Options and Stock Appreciation Rights

The Company uses several forms of share-based incentive awards, including non-qualified stock options, and stock settled stock appreciation rights (“SARs”). Options and SARs generally vest over 5 years and expire 10 years from the grant date. The majority of the Company’s annual share-based incentive awards are made in the fiscal second quarter. All grants are made at prices equal to the fair market value of the stock on the grant date. For the three months ended April 1, 2017 and April 2, 2016, expired and canceled shares were immaterial.

The table below presents share-based compensation activity for the three months endedApril 1, 2017 and April 2, 2016 (in millions):

	April 1, 2017		April 2, 2016
Total Intrinsic Value of Share-Based Incentive Awards Exercised	$	2.5	$	0.1
Cash Received from Stock Option Exercises	0.4		0.5
Income Tax Benefit from the Exercise of Stock Options	0.4		0.1
Total fair value of share-based incentive awards vested	0.1		—

Following is a summary of share-based incentive plan activity (options and SARs) for the three months endedApril 1, 2017:

Number of Shares Under Options and SARs	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Exercisable at December 31, 2016	1,610,499		$	63.16
Granted	—		—
Exercised	(98,091	)	49.04
Forfeited	(1,180	)	54.61
Expired	(410	)	75.76
Outstanding at April 1, 2017	1,510,818		$	64.08	5.7	$	17.8
Exercisable at April 1, 2017	867,775		$	62.31	4.0	$	11.6

Compensation expense recognized related to options and SARs was $1.0 million for the three months ended April 1, 2017.

As of April 1, 2017, there was $8.9 million of unrecognized compensation cost related to non-vested options and SARs that is expected to be recognized as a charge to earnings over a weighted average period of 3.1 years.

The amount of options expected to vest is materially consistent with those outstanding and not yet exercisable.

Restricted Stock Awards and Restricted Stock Units

Restricted stock awards ("RSA") and restricted stock units ("RSU") consist of shares or the rights to shares of the Company's stock. The awards are restricted such that they are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer. As defined in the individual grant agreements, acceleration of vesting may occur under a change in control, or death, disability or normal retirement of the grantee.

Following is a summary of RSA activity for the three months endedApril 1, 2017:

	Shares	Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (years)
Unvested RSAs at December 31, 2016	19,593	$	57.43	0.4
Granted	—	—
Vested	—	—
Forfeited	—	—
Unvested RSAs at April 1, 2017	19,593	$	57.43	0.1

RSAs vest on the first anniversary of the grant date, provided the holder of the shares is continuously employed by or in the service of the Company until the vesting date. Compensation expense recognized related to the RSAs was $0.3 million for the three months endedApril 1, 2017.

As of April 1, 2017, there was $0.1 million of unrecognized compensation cost related to non-vested RSAs that is expected to be recognized as a charge to earnings over a weighted average period of 0.1 years.

Following is a summary of RSU activity for the three months endedApril 1, 2017:

	Shares		Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (years)
Unvested RSUs at December 31, 2016	277,863		$	69.23	1.7
Granted	1,700		70.13
Vested	(10,530	)	71.42
Forfeited	(615	)	63.90
Unvested RSUs at April 1, 2017	268,418		$	69.16	1.5

RSU shares vest on the third anniversary of the grant date, provided the holder of the shares is continuously employed by the Company until the vesting date. Compensation expense recognized related to the RSUs was $1.3 million for the three months endedApril 1, 2017.

As of April 1, 2017, there was $8.1 million of unrecognized compensation cost related to non-vested RSUs that is expected to be recognized as a charge to earnings over a weighted average period of 1.5 years.

Performance Share Units

Performance share unit ("PSU") awards consist of shares or the rights to shares of the Company's stock which are awarded to employees of the Company. These shares are payable upon the determination that the Company achieved certain established performance targets and can range from 0% to 200% of the targeted payout based on the actual results. PSUs have a performance period of 3 years. As set forth in the individual award agreements, acceleration of vesting may occur under a change in control, death or disability. There are no voting rights associated with PSUs until vesting occurs and a share of stock is issued. Some of the PSU awards are valued using a Monte Carlo simulation method as of the grant date while others are valued using the closing market price as of the grant date depending on the performance criteria for the award.

Following is a summary of PSU activity for the three months endedApril 1, 2017:

	Shares		Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (years)
Unvested PSUs at December 31, 2016	133,340		$	65.28	2.0
Granted	—		—
Vested	—		—
Forfeited	(2,525	)	78.56
Unvested PSUs April 1, 2017	130,815		$	65.02	1.9

Compensation expense for awards granted is recognized based on the Monte Carlo simulation value or the expected payout ratio depending upon the performance criterion for the award, net of estimated forfeitures. Compensation expense recognized related to PSUs was $0.4 million for the three months endedApril 1, 2017. Total unrecognized compensation expense for all PSUs granted as of April 1, 2017 is estimated to be $3.6 million recognized as a charge to earnings over a weighted average period of 1.9 years.