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Share-Based Compensation
 6 Months Ended
Jun. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based Compensation

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

 
Quarter Ended
 
Two Quarters Ended
 
June 29, 2016
 
July 1, 2015
 
June 29, 2016
 
July 1, 2015
 
(In thousands)
Performance share awards
1,688

 
1,655

 
$
3,422

 
$
3,178

Restricted stock units for board members
214

 
204

 
428

 
386

Total share-based compensation
$
1,902

 
$
1,859

 
$
3,850

 
$
3,564


 
Performance Share Awards
 
In February 2016, we granted certain employees approximately 0.3 million performance shares that vest based on the total shareholder return ("TSR") of our common 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 $9.43 per share. The performance shares based on the Adjusted EBITDA growth rate have a grant date fair value of $9.52 per share, the market value of our common stock on the date of grant. The awards granted to our named executive officers also contain a performance condition based on the attainment of an operating measure for the fiscal year ended December 28, 2016. The performance period for these performance shares is the three year fiscal period beginning December 31, 2015 and ending December 26, 2018. They 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 June 29, 2016, we made payments of $2.5 million in cash and issued 0.4 million shares of common stock related to performance share awards.
 
As of June 29, 2016, we had approximately $10.0 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 June 29, 2016, we granted approximately 0.1 million deferred stock units (which are equity classified) with a weighted average grant date fair value of $10.77 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 our Board of Directors) or upon termination as a member of our Board of Directors. During the two quarters ended June 29, 2016, less than 0.1 million deferred stock units were converted into shares of common stock. As of June 29, 2016, 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.