We have equity-based compensation plans that authorize the issuance of equity-based awards for shares of Class A and Class B common stock to directors, officers and key employees. Equity-based compensation grants are designed to reward long-term contributions to Moog and provide incentives for recipients to remain with Moog.

We have an Employee Stock Purchase Plan ("ESPP") that allows for qualified employees (as defined in the plan) to purchase our common stock at a price equal to 85% of the fair market value at the lower of the beginning or the end of the semi-annual offering period.

The 2014 Long Term Incentive Plan ("2014 Plan") authorizes the issuance of a total of 2,000,000 shares of either Class A or Class B common stock. The 2014 Plan is intended to provide a flexible framework that permits the development and implementation of a variety of equity-based programs that base awards on key performance metrics as well as align our long term incentive compensation with our peers and shareholder interests.

During 2021, we granted awards in the form of stock appreciations rights ("SARs"), performance-based restricted stock units ("PSUs"), time vested restricted stock units ("TVAs") and restricted stock awards ("RSAs"). The compensation cost for employee and non-employee director equity-based compensation programs for all current and prior year awards granted are as follows:


	2021		2020		2019
Stock appreciation rights	$	2,345	$	2,643	$	2,594
Performance-based restricted stock units	1,151		221		2,048
Time vested restricted stock units	602		—		—
Restricted stock awards	730		680		480
Employee stock purchase plan	2,633		2,117		1,342

Total compensation cost before income taxes	$	7,461	$	5,661	$	6,464
Income tax benefit	$	893	$	677	$	1,024

The fair value of SARs granted was estimated on the date of grant using the Black-Scholes option-pricing model. The following table provides the range of assumptions used to value awards and the weighted-average fair value of the awards granted.


	2021			2020			2019
Expected volatility	38% - 41%			27% - 28%			26%
Risk-free rate	0.4% - 0.5%			1.7% - 1.8%			3.0%
Expected dividends	1.4		%	1.2		%	1.2		%
Expected term	5-6 years			5-6 years			5-6 years
Weighted-average fair value of awards granted	$	23.11		$	21.45		$	20.79

To determine expected volatility, we generally use historical volatility based on daily closing prices of our Class A and Class B common stock over periods that correlate with the expected terms of the awards granted. The risk-free rate is based on the United States Treasury yield curve at the time of grant for the appropriate expected term of the awards granted. Expected dividends are based on our history and expectation of dividend payouts. The expected term of equity-based awards is based on vesting schedules, expected exercise patterns and contractual terms.

The number of shares received upon the exercise of a SAR is equal in value to the difference between the fair market value of the common stock on the exercise date and the exercise price of the SAR. The term of a SAR may not exceed ten years from the grant date. The exercise price of SARs and options, determined by a committee of the Board of Directors, may not be less than the fair value of the common stock on the grant date.

SARs are as follows:


Stock Appreciation Rights	Number of Awards	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at October 3, 2020	984,270	$	67.07
Granted in 2021	90,304	73.39
Exercised in 2021	(172,642)	57.51
Expired in 2021	(11,039)	74.39
Forfeited in 2021	(7,470)	81.43
Outstanding at October 2, 2021	883,423	$	69.37	5.0 years	$	9,261
Exercisable at October 2, 2021	674,283	$	66.20	4.0 years	$	8,922

The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on our closing price of Class A common stock of $78.56 and Class B common stock of $77.18 as of October 2, 2021. That value would have been effectively received by the SAR holders had all SARs been exercised as of that date.

The intrinsic value of awards exercised and fair value of awards vested are as follows:


Stock Appreciation Rights	2021		2020		2019
Intrinsic value of SARs exercised	$	3,833	$	2,665	$	10,616
Total fair value of SARs vested	$	2,558	$	2,825	$	2,871

As of October 2, 2021, total unvested compensation expense associated with SARs amounted to $2,511 and will be recognized over a weighted-average period of two years.

PSU awards consist of shares of our stock which are payable upon the determination that we achieve certain established performance targets and can range from 0% to 200% of the targeted payout based on the actual results. PSU's granted in 2021 have a performance period of three years. The fair value of each PSU granted is equal to the fair market value of our common stock on the date of grant. PSUs granted generally have a three years period cliff vesting schedule; however, according to the grant agreements, if certain conditions are met, the employee (or beneficiary) will receive a prorated amount of the award based on active employment during the service period.

PSUs are as follows:


Performance-Based Restricted Stock Units	Number of Awards	Weighted- Average Grant Date Fair Value
Nonvested at October 3, 2020	64,841	$	83.11
Granted in 2021	28,442	73.39
Vested in 2021	(30,467)	80.22
Forfeited in 2021	(3,311)	81.80

Nonvested at October 2, 2021	59,505	$	80.02

As of October 2, 2021, total unvested compensation expense associated with nonvested PSUs amounted to $1,990 and will be recognized over a weighted-average period of two years.

The number of Class B common stock to be issued for PSU awards granted in 2019 that vested based on the achievement of performance targets in 2021, will be approximately 11,500 shares.

TVAs consist of shares of our stock which are payable over a vesting schedule determined at the time the award is granted. TVAs will vest in equal fixed dollar tranches over the agreed upon vesting term beginning one year after the date of the grant and will settle using the fair market value of shares on the date of vesting of the tranche. Although it is our intention to settle vested amount in shares, we reserve the right to settle in cash at our discretion.


Time Vested Restricted Stock Units	Number of Awards	Weighted- Average Grant Date Fair Value

Granted in 2021	26,153	$	79.87

Forfeited in 2021	(314)	79.87

Nonvested at October 2, 2021	25,839	$	79.87

As of October 2, 2021, total unvested compensation expense associated with nonvested TVAs amounted to $1,459 and will be recognized over a weighted-average period of two years.

The fair value of each RSA granted is equal to the fair market value of our common stock on the date of grant. These shares vest and are issued upon grant. There were 9,914 RSAs granted and vested in 2021 at a price of $73.69 resulting in a fair value of the RSAs vested of $730.

The Management Short Term Incentive Plan ("STI") is intended to attract, motivate and retain highly qualified executives serving on the management team and reward them according to our financial performance with a payment of either cash and/or shares of our common stock. There were 45,834 STI awards granted and vested in 2021 at a price of $86.56, resulting in a fair value of $3,967 in satisfaction of a portion of the 2020 management profit share expense.


Employee Stock Purchase Plan	2021		2020		2019
Shares issued	141,647		119,470		79,928
Weighted-average price per share	$	58.52	$	58.71	$	65.91