Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation

v2.4.0.8
Equity-Based Compensation
 3 Months Ended
Mar. 29, 2014
Equity-Based Compensation [Abstract]  
Equity-Based Compensation

NOTE  G — EQUITY BASED COMPENSATION

The Company utilizes a share-based compensation plan, which is more fully described in Note K to the Consolidated Financial Statements in Form 10-K for the year ended December 28, 2013. 

 

Equity-based compensation expense for the three months ended March 30, 2013 and March 29, 2014, was $2,396, and $1,836 respectively.  The related tax benefit for these periods was $812, and $617, respectively. 

 

The following table shows the remaining unrecognized compensation expense on a pre-tax basis for all types of unvested equity awards outstanding as of March 29, 2014.  This table does not include an estimate for future grants that may be issued.

 

 

 

 

 

 

 

 

2014

 

$          6,784

2015

 
7,299 

2016

 
5,420 

2017

 
3,348 

2018

 
541 

 

 

$        23,392

 

 

 

The cost above is expected to be recognized over a weighted-average

 

 

period of 2.2 years.

 

 

 

The Company uses the Black-Scholes option pricing model to estimate the fair value of its equity awards.  The weighted-average fair value of stock-settled stock appreciation rights that were granted during the three months ended March 30, 2013, and March 29, 2014, was $13.34 and $17.73, respectively.  Following is a table that includes the weighted-average assumptions that the Company used to calculate fair value of equity awards that were granted during the periods indicated.

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 30,

 

March 29,

 

 

2013

 

2014

 

 

 

 

 

Expected volatility (1) .

 
43.7% 

 
39.9% 

Risk-free interest rate (2) .

 
0.6% 

 
1.2% 

Expected life (3) .

 

3.97 yrs

 

3.54 yrs

Expected dividend yield (4) .

 
0.0% 

 
0.0% 

Weighted-average exercise price (5) .

 
$
38.69 

 
$
57.62 

 

 

 

 

 

(1) The Company utilizes historical volatility of the trading price of its common stock.

(2) Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of

the award.

 

 

 

 

(3) Depending upon the terms of the award, expected life may be a weighted-average that includes

 historical settlement data of the Company's equity awards and a hypothetical holding

 period for outstanding awards, or it may be calculated under the simplified method.

(4) The Company historically has not paid dividends.

(5) Exercise price is the closing price of the Company's common stock on the date of grant.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE G – EQUITY-BASED COMPENSATION – CONTINUED

 

A summary of the Company’s stock option and stock-settled stock appreciation right activity is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

Weighted-average exercise price

 

Weighted-average remaining contractual term

 

Aggregate intrinsic value*

 

Outstanding at December 28, 2013

 
1,827 

 

$          37.37

 
2.6 

 

$        74,160

 

Granted

 
669 

 
57.62 

 

 

 

 

 

Exercised

 
(160)

 
28.83 

 

 

 

 

 

Forfeited

 
(20)

 
27.33 

 

 

 

 

 

Expired

 

 -

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 29, 2014

 
2,316 

 

$          43.90

 
3.0 

 

$        70,387

 

 

 

 

 

 

 

 

 

 

 

Exercisable at March 29, 2014

 
424 

 

$          37.96

 
1.9 

 

$        15,280

 

 

 

 

 

 

 

 

 

 

 

* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the

 

Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money.  The

 

closing price of the Company's common stock at December 28, 2013, and March 29, 2014, was $77.72 and $74.02, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The total intrinsic value of stock options and stock-settled stock appreciation rights exercised during the three months ended March 30, 2013, and March 29, 2014, was $1,150 and $6,800, respectively.  The Company currently has no deferred stock units that are considered nonvested.     

 

The total fair value of equity awards that vested during the three months ended March 30, 2013, and March 29, 2014, was $270 and $496, respectively.  This total fair value includes equity-based awards issued in the form of stock options and stock-settled stock appreciation rights.