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Preferred and Common Shares and Share-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share-Based Compensation Expense Recorded in the Consolidated Statements of Operations

The table below summarizes share-based compensation expense recorded in the consolidated statements of operations (in thousands):

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

October 1,

 

 

September 30,

 

 

October 1,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Selling, general and administrative

$

4,649

 

 

$

4,360

 

 

$

13,906

 

 

$

13,123

 

Research and development and engineering

 

586

 

 

 

534

 

 

 

1,780

 

 

 

1,776

 

Cost of revenue

 

719

 

 

 

631

 

 

 

2,123

 

 

 

2,305

 

Restructuring, acquisition, and related costs

 

 

 

 

2,965

 

 

 

 

 

 

2,965

 

Total share-based compensation expense

$

5,954

 

 

$

8,490

 

 

$

17,809

 

 

$

20,169

 

 

Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions

The fair value of the TSR-PSUs at the date of grant was estimated using the Monte Carlo valuation method with the following assumptions:

 

 

Nine Months Ended September 30, 2022

 

Grant-date stock price

$

137.29

 

Expected volatility

 

40.33

%

Risk-free interest rate

 

1.81

%

Expected annual dividend yield

 

 

Fair value

$

144.38

 

Schedule of Share Based Payment Award Stock Options Valuation Assumptions

The aggregate Black-Scholes fair value of $1.9 million for the stock options granted during the nine months ended September 30, 2022 was estimated using the following assumptions as of the grant date:

 

Nine Months Ended September 30, 2022

 

Expected option term in years

 

4.5

 

Expected volatility

 

39.3

%

Risk-free interest rate

 

1.83

%

Expected annual dividend yield

 

 

The expected option term was calculated using the simplified method permitted under Codification of Staff Accounting Bulletins Topic 14, “Share-Based Payment”. The expected volatility was determined based on the historical volatility of the Company’s common shares over the expected option term. Risk-free interest rate was based upon treasury instrument whose term was six months longer than the expected option term. The expected annual dividend yield is zero as the Company does not have plans to issue dividends.

Amended and Restated 2010 Incentive Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Restricted Stock Units and Deferred Stock Units Issued and Outstanding

The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022:

 

 

Shares
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

Unvested at December 31, 2021

 

292

 

 

$

115.42

 

Granted

 

118

 

 

$

136.41

 

Vested

 

(135

)

 

$

114.12

 

Forfeited

 

(13

)

 

$

126.79

 

Unvested at September 30, 2022

 

262

 

 

$

124.72

 

Expected to vest as of September 30, 2022

 

242

 

 

 

 

Performance-Based Awards Issued and Outstanding

The table below summarizes the activities relating to the performance-based awards issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022:

 

 

Shares
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

Unvested at December 31, 2021

 

162

 

 

$

122.26

 

Granted

 

107

 

 

$

159.00

 

Vested

 

(41

)

 

$

108.58

 

Forfeited

 

(10

)

 

$

156.62

 

Unvested at September 30, 2022

 

218

 

 

$

144.40

 

Expected to vest as of September 30, 2022

 

230

 

 

 

 

Stock Options Issued and Outstanding

The table below summarizes activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares
(In thousands)

 

 

Weighted
Average Exercise Price

 

Outstanding as of December 31, 2021

 

60

 

 

$

14.13

 

Granted

 

40

 

 

$

135.86

 

Exercised

 

 

 

$

 

Forfeited or expired

 

 

 

$

 

Outstanding as of September 30, 2022

 

100

 

 

$

62.77

 

Exercisable as of September 30, 2022

 

60

 

 

 

 

Expected to vest as of September 30, 2022

 

40