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Common Shares and Share-Based Compensation (Tables)

6 Months Ended

Jul. 03, 2020

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				Six Months Ended
	July 3,		June 28,		July 3,		June 28,
	2020		2019		2020		2019
Selling, general and administrative	$	3,162	$	2,089	$	5,960	$	4,620
Research and development and engineering		861		184		1,054		295
Cost of revenue		1,388		105		1,596		190
Restructuring, acquisition, and related costs		237		—		237		—
Total share-based compensation expense	$	5,648	$	2,378	$	8,847	$	5,105

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 model with the following assumptions:

	Six Months Ended July 3, 2020
Grant-date stock price	$	96.28
Expected volatility		34.25	%
Risk-free interest rate		1.35	%
Expected annual dividend yield		—
Fair value	$	126.65

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 six months ended July 3, 2020:

	Shares (In thousands)			Weighted Average Grant Date Fair Value
Unvested at December 31, 2019		453		$	39.74
Granted		284		$	84.90
Vested		(97	)	$	51.71
Forfeited		(4	)	$	71.89
Unvested at July 3, 2020		636		$	58.06
Expected to vest as of July 3, 2020		600

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 six months ended July 3, 2020:

	Shares ⁽¹⁾ (In thousands)			Weighted Average Grant Date Fair Value
Unvested at December 31, 2019		152		$	57.09
Granted		50		$	111.47
Performance adjustment ⁽²⁾		60		$	28.80
Vested		(120	)	$	28.80
Unvested at July 3, 2020		142		$	89.05
Expected to vest as of July 3, 2020		158

⁽¹⁾

The unvested PSUs are shown in this table at target, except for the number of shares vested, which reflects the number of shares earned and expected to vest. As of July 3, 2020, the maximum number of PSUs available to be earned was approximately 284 thousand shares.

⁽²⁾

The amount shown represents performance adjustment for performance-based awards granted on February 28, 2017. These units vested at 200% during the six months ended July 3, 2020 based on the achievement of cumulative Non-GAAP EPS and applicable relative TSR performance conditions during the performance period of fiscal years 2017 through 2019.