Stock-based Compensation | 9 Months Ended |
Dec. 27, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation |
In August 2008, the Company’s stockholders approved the 2008 Long-Term Incentive Plan (the "Incentive Plan"), which replaced the 1992 Stock Option Plan, as amended, and the 1992 Director Stock Option Plan, as amended. As of December 31, 2014, the Incentive Plan is authorized to issue stock options, restricted stock units and performance shares, among other types of awards, for up to 5,109,959 shares of common stock, par value $0.001 per share (the "common stock"). |
The Company recognized stock-based compensation expense of $1,315 and $1,514 for the three-months ended December 31, 2014 and 2013, respectively, and $4,909 and $5,486 for the nine-months ended December 31, 2014 and 2013, respectively. The Company recognized total income tax benefit for stock-based compensation arrangements of $479 and $552 for the three-months ended December 31, 2014 and 2013, respectively, and $1,790 and $2,001 for the nine-months ended December 31, 2014 and 2013, respectively. Stock-based compensation expense is recorded in Selling, general & administrative expense within the Company’s Consolidated Statements of Operations. |
Stock options |
Stock option awards are granted with an exercise price equal to the closing market price of the common stock on the date of grant; such stock options generally become exercisable in equal amounts over a three-year period and have a contractual life of ten-years from the grant date. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model, which includes the following weighted-average assumptions. |
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| Nine-months ended | | | | | |
| December 31 | | | | | |
| 2014 | | 2013 | | | | | | |
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Expected life (in years) | 7.7 | | 6.8 | | | | | | |
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Risk free interest rate | 2.3 | % | 1.3 | % | | | | | |
Annual forfeiture rate | 1.5 | % | 2.5 | % | | | | | |
Expected Volatility | 45.1 | % | 42.3 | % | | | | | |
Dividend yield | 1.3 | % | 1.3 | % | | | | | |
The following table summarizes the Company’s stock option activity: |
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| Shares (in 000’s) | | Weighted-Average Exercise Price | | Weighted-Average Remaining Contractual Life (Years) | Intrinsic Value (000’s) | |
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Outstanding at March 31, 2014 | 2,018 | | $ | 32.89 | | | |
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Granted | 166 | | 21.79 | | | |
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Exercised | — | | — | | | |
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Forfeited or cancelled | (307 | ) | 34.71 | | | |
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Outstanding at December 31, 2014 | 1,877 | | $ | 31.61 | | 3.8 | $ | 717 | |
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Exercisable at December 31, 2014 | 1,577 | | $ | 33.19 | | 2.8 | $ | 210 | |
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The weighted-average grant-date fair value of options granted during the nine-months ended December 31, 2014 and 2013 was $9.59 and $10.06, respectively. The intrinsic value of options exercised during the nine-months ended December 31, 2014 and 2013 was $0 and $21, respectively. The aggregate intrinsic value in the preceding table is based on the closing stock price of the common stock on December 26, 2014, which was $24.39. |
The following table summarizes certain information regarding the Company’s non-vested stock options: |
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| Shares (in 000’s) | | Weighted-Average Grant-Date Fair Value | | | | | |
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31-Mar-14 | 258 | | $ | 10.07 | | | | | |
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Granted | 166 | | 9.59 | | | | | |
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Vested | (118 | ) | 10.38 | | | | | |
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Forfeited | (6 | ) | 9.77 | | | | | |
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31-Dec-14 | 300 | | $ | 9.68 | | | | | |
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As of December 31, 2014, there was $1,980 of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.9 years. |
Restricted stock units |
Restricted stock unit awards are subject to a service condition and typically vest in equal amounts over a three-year period from the grant date. The fair value of restricted stock units is determined based on the number of restricted stock units granted and the closing market price of the common stock on the date of grant. |
The following table summarizes the Company’s restricted stock unit activity: |
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| Shares (in 000’s) | | Weighted-Average Grant-Date Fair Value | | | | | |
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March 31, 2014 | 289 | | $ | 25.73 | | | | | |
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Granted | 181 | | 21.79 | | | | | |
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Vested | (165 | ) | 25.61 | | | | | |
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Forfeited | (19 | ) | 24.42 | | | | | |
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December 31, 2014 | 286 | | $ | 23.38 | | | | | |
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The total fair value of shares that vested during the nine-months ended December 31, 2014 and 2013 was $3,771 and $4,675, respectively. |
As of December 31, 2014, there was $3,861 of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 1.8 years. |
Performance share awards |
Performance share awards are subject to one of the performance goals - the Company's Relative Total Shareholder Return ("TSR") Ranking or cumulative Adjusted EBITDA - each over a three-year period. The Company’s Relative TSR Ranking metric is based on the three-year cumulative return to stockholders from the change in stock price and dividends paid between the starting and ending dates. The fair value of performance share awards (subject to cumulative Adjusted EBITDA) is determined based on the number of performance shares granted and the closing market price of the common stock on the date of grant. The fair value of performance share awards (subject to the Company’s Relative TSR Ranking) is estimated on the grant date using the Monte-Carlo simulation valuation method which includes the following weighted-average assumptions. |
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| Nine-months ended | | | | | |
| December 31 | | | | | |
| 2014 | | 2013 | | | | | | |
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Risk free interest rate | 0.8 | % | 0.4 | % | | | | | |
Expected Volatility | 44.7 | % | 41.1 | % | | | | | |
Dividend yield | 1.3 | % | 1.3 | % | | | | | |
The following table summarizes the Company’s performance share award activity: |
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| Shares (in 000’s) | | Weighted-Average Grant-Date Fair Value | | | | | |
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March 31, 2014 | 255 | | $ | 28.66 | | | | | |
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Granted | 115 | | 23.05 | | | | | |
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Vested | — | | — | | | | | |
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Forfeited | (88 | ) | 33.92 | | | | | |
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December 31, 2014 | 282 | | $ | 24.72 | | | | | |
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The total fair value of shares that vested during the nine-months ended December 31, 2014 and 2013 was $0 and $570, respectively. |
As of December 31, 2014, there was $1,567 of total unrecognized pre-tax stock-based compensation expense related to non-vested performance share awards, which is expected to be recognized over a weighted-average period of 1.9 years. |