Stock-based Compensation |
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| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based Compensation | Stock-based Compensation
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation (“ASC 718”). In accordance with ASC 718, the Company measures compensation cost for all stock-based awards at fair value on the date of grant and recognizes compensation expense, net of forfeitures, using the straight-line method over the requisite service period of awards expected to vest, which for each of the awards is the service vesting period. Stock-based compensation expense for the thirteen weeks ended March 31, 2022 and April 1, 2021 was $6.0 million and $4.7 million, respectively, and was included in general and administrative expenses within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income.
Stock Options
The table below summarizes stock option activity for the thirteen weeks ended March 31, 2022.
Total unrecognized compensation cost related to stock options as of March 31, 2022 and December 30, 2021 was $7.8 million and $9.7 million, respectively. The unrecognized compensation cost remaining as of March 31, 2022 is expected to be recognized over a weighted average period of 1.8 years.
Restricted Stock Units
During the thirteen weeks ended March 31, 2022, the Company granted service-based restricted stock units (“RSUs”) to certain employees, executive officers, and non-employee directors and performance-based restricted stock units (“PSUs”) to certain executive officers that represent an unfunded, unsecured right to receive a share of the Company’s Class A common stock upon vesting. The RSUs granted during the period vest in ratable annual installments on each of the first anniversaries of the grant date, subject to the grantee’s continued service through the applicable vesting date, whereas the PSUs cliff vest after a three-year period based on the achievement of specific targets for adjusted EBIT (earnings before interest and taxes) growth and return on invested capital, subject to the grantee’s continued service through the applicable vesting date. Based on the extent to which the performance goals are achieved, vested shares may range from 0% to 200% of the target award amount. The fair value of the service-based and performance-based restricted stock units was determined based on the closing price of the Company’s Class A common stock on the date of grant.
The following table summarizes restricted stock unit activity during the thirteen weeks ended March 31, 2022:
Total unrecognized compensation cost related to restricted stock units as of March 31, 2022 and December 30, 2021 was $37.8 million and $14.0 million, respectively. The unrecognized compensation cost remaining as of March 31, 2022 is expected to be recognized over a weighted average period of 2.8 years.
Restricted Stock Awards
The following table summarizes restricted stock award activity during the thirteen weeks ended March 31, 2022:
As of March 31, 2022 and December 30, 2021, total unrecognized compensation cost related to unvested restricted stock awards was $9.1 million and $10.9 million, respectively. The unrecognized compensation cost remaining as of March 31, 2022 is expected to be recognized over a weighted average period of 1.7 years.
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