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Stock Based Compensation
9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock Based Compensation

NOTE 5. STOCK BASED-COMPENSATION

Stock-Based Compensation Expense

We record stock compensation expense over an equity award’s vesting period based on the award’s fair value at the date of grant. We recorded compensation expense for stock-based awards of $3.1 million for the three months ended September 30, 2023, of which $2.7 million is classified within selling, general and administrative expenses, and $2.7 million for the three months ended October 1, 2022, of which $2.3 million is classified within selling, general and administrative expenses. We recorded compensation expense for stock-based awards of $9.1 million for the nine months ended September 30, 2023, of which $7.8 million is classified within selling, general and administrative expenses, and $7.6 million for the nine months ended October 1, 2022, of which $6.6 million is classified within selling, general and administrative expenses. Portions of stock compensation expense not classified within selling, general and administrative expenses are classified within cost of sales.

As of September 30, 2023, there was $22.6 million in total unrecognized compensation cost related entirely to restricted share awards, including time-vesting and those with performance conditions. These costs are expected to be recognized in earnings on an accelerated basis over the weighted average remaining vesting period of 2.2 years at September 30, 2023.

 

All-Employee Grant

 

On September 1, 2023, we issued 347,475 shares of restricted stock to all employees of the Company (the "All-Employee Grant") who do not participate in the Company’s long-term incentive plan. These shares are not subject to adjustment based on any performance or other criteria, but rather, cliff-vest on September 1, 2026, the third anniversary of the grant date, assuming the grantee is employed by the Company on that date. Employees were granted an amount of shares based on their years-of-service as of September 1, 2023, which included 50 shares to those employees who reached at least their one-year anniversary, 75 shares to those who reached at least their two-year anniversary, and 100 shares to those who reached at least their five-year anniversary. Any employee who had not yet reached their one-year anniversary as of September 1, 2023, will be eligible to receive a grant of 50 shares in a second grant to be made on September 1, 2024. The grant date fair value of the All-Employee Grant was $28.19 per share.