F .	Stock-Based Compensation

Performance Stock Awards (“PSA”)

During the

first

quarter of fiscal

2020

and

2019,

the Company granted a target number of

71.7

and

37.0

PSAs, respectively, to various employees of the Company, including executive officers. The fiscal

2020

PSAs will vest if the Company achieves performance-based target objectives relating to average return on invested capital, average annual sales and average annual Earnings Per Share (“EPS”) (as defined in the PSA Grant Agreement), in the cumulative

three

fiscal year period ending

June 30, 2022.

These PSAs are subject to adjustment if the Company’s return on invested capital, net sales, and EPS for the period falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is

107.6.

Based upon actual results to date, the Company is currently accruing compensation expense for these PSAs.

The fiscal

2019

PSAs will vest if the Company achieves performance-based target objectives relating to average return on invested capital, average annual sales and average annual EPS (as defined in the PSA Grant Agreement), in the cumulative

three

fiscal year period ending

June 30, 2021.

75.0.

Based upon actual results to date, the Company is currently accruing compensation expense for these PSAs.

There were

167.8

and

182.7

unvested PSAs outstanding at

September 27, 2019

and

September 28, 2018,

respectively. The fair value of the PSAs (on the date of grant) is expensed over the performance period for the shares that are expected to ultimately vest. Compensation expense of

$72

and

$546

was recognized for the quarters ended

September 27, 2019

and

September 28, 2018,

respectively, related to PSAs. The weighted average grant date fair value of the unvested awards at

September 27, 2019

was

$16.70.

September 27, 2019,

the Company had

$1,844

of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal

2020,

2019

and

2018

awards. The total fair value of PSAs vested as of

September 27, 2019

and

September 28, 2018

was

Restricted Stock Awards (“RS”)

The Company has unvested RS awards outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation expense over the vesting period, which is generally

years. During the

first

quarter of fiscal

2020

and

2019,

the Company granted

86.4

and

4.0

service based restricted shares, respectively, to employees and non-employee directors. There were

178.8

and

170.4

unvested shares outstanding at

September 27, 2019

and

September 28, 2018,

respectively. There were

shares of restricted stock forfeited during the quarter ended

September 27, 2019.

A total of

2.8

shares of restricted stock were forfeited during the quarter ended

September 28, 2018.

Compensation expense of

$306

and

$250

was recognized for the quarters ended

September 27, 2019

and

September 28, 2018,

respectively. The total fair value of restricted stock grants vested as of

September 27, 2019

and

September 28, 2018

was

$1,017

and

$1,785,

respectively. As of

September 27, 2019,

the Company had

$1,474

of unrecognized compensation expense related to restricted stock which will be recognized over the next

three

years.

Restricted Stock

Unit

Awards (“RS

”)

Under the

2018

Long Term Incentive Plan, the Company has been authorized to issue RSUs. The RSUs entitle the employee to shares of common stock of the Company if the employee remains employed by the Company through a specified date, generally

three

years from the date of grant. During the

first

quarter of fiscal

2019,

the Company granted

38.0

RSUs to various employees of the Company, including executive officers. The fair value of the RSUs (on the date of grant) is recorded as compensation expense over the vesting period. There were

38.0

unvested RSUs outstanding at

September 27, 2019

and at

September 28, 2018.

Compensation expense of

$81

and

$54

was recognized for the quarters ended

September 27, 2019

and

September 28, 2018,

respectively. The weighted average grant date fair value of the unvested awards at

September 27, 2019

was

$25.77.

As of

September 27, 2019,

the Company had

$598

of unrecognized compensation expense related to restricted stock which will be recognized over the next

three

years.