Share-Based Payments (Tables)

9 Months Ended

Oct. 01, 2022

Share-Based Payments

Schedule of stock option activity

The following table details our stock option activity for the first three quarters of fiscal 2022 (dollars in thousands, except per share data):

		Weighted		Weighted Average
		Average		Contractual Life	Aggregate
	Options	Exercise Price		Remaining (Years)	Intrinsic Value
Outstanding at January 1, 2022	789,226	$	31.86	7.03	$	1,245
Granted	44,239	$	22.49
Exercised	(2,227)	$	26.80
Forfeited	—	$	—
Expired	(3,508)	$	31.30
Outstanding at October 1, 2022	827,730	$	31.37	6.43	$	—
Exercisable at October 1, 2022	554,609	$	30.97	5.23	$	—

Schedule of stock options, valuation assumption

	2022		2021
Weighted average grant date fair value	$	3.73	$	6.48
Expected volatility		39.53%		37.3% - 38.8%
Expected term		5.5 years		5.5 - 6.5 years
Risk-free interest rate		3.0%		0.9% - 1.1%
Dividend yield		8.5%		5.6% - 6.3%

Schedule of non-vested performance share LTIAs

		Weighted Average
	Number of	Grant Date Fair Value
	Performance Shares(1)	(per share)(2)
Outstanding at January 1, 2022	1,140,381	$	20.08
Granted	350,427	$	21.81
Vested	(337,284)	$	19.75
Forfeited	(94,890)	$	24.38
Outstanding at October 1, 2022	1,058,634	$	20.37

(1) Solely for purposes of this table, the number of performance shares is based on the participants earning the maximum number of performance shares (i.e., 200% to 233% of the target number of performance shares).

(2) The fair value of the awards was determined based upon the closing price of our common stock on the applicable measurement dates (i.e., the deemed grant dates for accounting purposes), reduced by the present value of expected dividends using the risk-free interest-rate, as the award holders are not entitled to dividends or dividend equivalents during the vesting period.

Restricted stock activity

		Weighted Average
	Number of Shares	Grant Date Fair Value
	of Restricted Stock	(per share)(1)
Outstanding at January 1, 2022	74,461	$	24.78
Granted	49,444	$	27.30
Vested	(32,367)	$	23.27
Forfeited	(2,748)	$	26.24
Outstanding at October 1, 2022	88,790	$	26.69

(1) The fair value of the awards was determined based upon the closing price of our common stock on the applicable measurement dates (i.e., the deemed grant dates for accounting purposes).

Schedule of number of shares of common stock issued by entity upon the vesting of performance share long-term incentive awards other share based compensation

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	October 1,		October 2,		October 1,		October 2,
	2022		2021		2022		2021
Number of performance shares vested		—		—		337,284		86,523
Shares withheld for tax withholding		—		—		(125,152)		(35,281)
Shares of common stock issued for performance share LTIAs		—		—		212,132		51,242
Shares of common stock issued upon the exercise of stock options		—		1,040		2,227		467,152
Shares of common stock issued to non-employee directors for annual equity grants		—		—		46,773		39,251
Shares of restricted common stock issued to employees		—		—		49,444		38,098
Shares of restricted stock withheld and cancelled for tax withholding upon vesting		(468)		—		(12,589)		(21,528)
Shares of restricted stock cancelled upon forfeiture		(1,067)		—		(2,748)		(956)
Net shares of common stock issued (cancelled)		(1,535)		1,040		295,239		573,259

Schedule of compensation expense recognized for share-based payments

The following table sets forth the compensation expense recognized for share-based payments (performance share LTIAs, restricted stock, stock options, non-employee director stock grants and other share-based payments) during the third quarter and first three quarters of 2022 and 2021 and where that expense is reflected in our consolidated statements of operations (in thousands):

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	October 1,		October 2,		October 1,		October 2,
Consolidated Statements of Operations Location	2022		2021		2022		2021
Compensation expense included in cost of goods sold	$	95	$	180	$	534	$	638
Compensation expense included in selling, general and administrative expenses		641		923		2,450		2,590
Total compensation expense for share-based payments	$	736	$	1,103	$	2,984	$	3,228