Stockholders’ Equity (Deficit)

6 Months Ended

Jun. 29, 2019

Stockholders' Equity Note [Abstract]

Stockholders’ deficit

(a) Treasury stock

During the six months ended June 29, 2019, the Company repurchased a total of 134,737 shares of common stock in the open market at a weighted-average cost per share of $75.18 from existing stockholders.

The Company accounts for treasury stock under the cost method based on the cost of the shares on the dates of repurchase plus any direct costs incurred. During the six months ended June 29, 2019, the Company retired 134,737 shares of treasury stock repurchased in the open market. The repurchase and retirement of these shares of treasury stock resulted in a decrease in additional paid-in capital of $1.0 million and an increase in accumulated deficit of $9.2 million.

(b) Equity incentive plans

During the six months ended June 29, 2019, the Company granted stock options to purchase 619,306 shares of common stock and 65,092 restricted stock units (“RSUs”) to certain employees and members of our board of directors. The stock options vest in equal annual amounts over a four-year period subsequent to the grant date, and have a maximum contractual term of seven years. The stock options were granted with a weighted-average exercise price of $72.28 per share and had a weighted-average grant-date fair value of $12.54 per share. The RSUs granted to employees and members of our board of directors vest in equal

annual amounts over a three-year period and a one-year period, respectively, subsequent to the grant date and had a weighted-average grant-date fair value of $70.01 per unit.

In addition, the Company granted 47,431 performance stock units (“PSUs”) to certain employees during the six months ended June 29, 2019. These PSUs are generally eligible to cliff-vest approximately three years from the grant date. Of the total PSUs granted, 20,681 PSUs are subject to a service condition and a market vesting condition linked to the level of total shareholder return received by the Company’s stockholders during the performance period measured against the companies in the S&P 500 Composite Index (“TSR PSUs”). The remaining 26,750 PSUs granted are subject to a service condition and a performance vesting condition based on the level of adjusted operating income growth achieved over the performance period (“AOI PSUs”). The maximum vesting percentage that could be realized for each of the TSR PSUs and the AOI PSUs is 200% based on the level of performance achieved for the respective awards. All of the PSUs are also subject to a one-year post-vesting holding period. The TSR PSUs were valued based on a Monte Carlo simulation model to reflect the impact of the total shareholder return market condition, resulting in a weighted-average grant-date fair value of $86.97 per unit. The probability of satisfying a market condition is considered in the estimation of the grant-date fair value for TSR PSUs and the compensation cost is not reversed if the market condition is not achieved, provided the requisite service has been provided. The AOI PSUs had a weighted-average grant-date fair value of $69.19 per unit. Total compensation cost for the AOI PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest based on the outcome.

During the six months ended June 29, 2019, contingently issuable restricted shares granted in fiscal year 2014 realized a 52.2% vesting percentage based upon level of performance achieved against the market vesting condition, and 78,300 restricted shares vested.

Total compensation expense related to all share-based awards was $3.7 million for each of the three-month periods ended June 29, 2019 and June 30, 2018, and $7.3 million and $6.9 million for the six months ended June 29, 2019 and June 30, 2018, respectively, and was included in general and administrative expenses, net in the consolidated statements of operations.

The changes in the components of accumulated other comprehensive loss were as follows (in thousands):



	Effect of foreign currency translation			Other		Accumulated other comprehensive loss
Balance as of December 29, 2018	$	(14,307	)	(820	)	(15,127	)
Other comprehensive loss, net	(4,013		)	(131	)	(4,144	)
Balance as of June 29, 2019	$	(18,320	)	(951	)	(19,271	)

(d) Dividends

The Company paid a quarterly dividend of $0.3750 per share of common stock on March 20, 2019 and June 12, 2019, each totaling approximately $31.0 million. On August 1, 2019, the Company announced that its board of directors approved the next quarterly dividend of $0.3750 per share of common stock payable September 12, 2019 to stockholders of record as of the close of business on September 3, 2019.