Share-Based Compensation

6 Months Ended

Jul. 01, 2015

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

Total share-based compensation cost included as a component of net income was as follows:



	Quarter Ended				Two Quarters Ended
	July 1, 2015		June 25, 2014		July 1, 2015		June 25, 2014
	(In thousands)
Stock options	$	—	$	—	$	—	$	52
Performance share awards	1,655		984		3,178		1,912
Restricted stock units for board members	204		196		386		380
Total share-based compensation	$	1,859	$	1,180	$	3,564	$	2,344

Performance Share Awards

In February 2015, we granted certain employees approximately 0.2 million performance shares that vest based on the total shareholder return ("TSR") of our stock compared to the TSRs of a group of peer companies and 0.3 million performance shares that vest based on our Adjusted EBITDA growth rate, as defined under the terms of the award. As the TSR based performance shares contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value of $11.86 per share. The performance shares based on the Adjusted EBITDA growth rate have a grant date fair value of $11.03 per share, the market value of our stock on the date of grant. The awards granted to our named executive officers also contain a performance condition based on certain operating measures for the fiscal year ended December 30, 2015. The TSR and Adjusted EBITDA growth rate performance period is the three year fiscal period beginning January 1, 2015 and ending December 27, 2017. The performance shares will vest and be earned (from 0% to 150% of the target award for each such increment) at the end of the performance period.

During the two quarters ended July 1, 2015, we made payments of $3.4 million in cash and issued 0.4 million shares of common stock related to performance share awards.

As of July 1, 2015, we had approximately $8.1 million of unrecognized compensation cost related to all unvested performance share awards outstanding, which is expected to be recognized over a weighted average of 2.0 years.

Restricted Stock Units for Board Members

During the two quarters ended July 1, 2015, we granted approximately 0.1 million deferred stock units (which are equity classified) with a weighted average grant date fair value of $10.60 per unit to non-employee members of our Board of Directors. A director may elect to convert these awards into shares of common stock either on a specific date in the future (while still serving as a member of the Board of Directors) or upon termination as a member of the Board of Directors. During the two quarters ended July 1, 2015, 0.1 million deferred stock units were converted into shares of common stock. As of July 1, 2015, we had approximately $0.7 million of unrecognized compensation cost related to all unvested restricted stock unit awards outstanding, which is expected to be recognized over a weighted average of 0.8 years.