Stock Compensation

3 Months Ended

Apr. 02, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Holdings has established the stockholder-approved 2014 Omnibus Incentive Plan, as amended (the “Omnibus Plan”) to grant cash and equity awards of Class A Common Stock, par value $0.01 per share (the “Common Stock”), to certain individuals. The Company’s Omnibus Plan was amended in October 2019 to allow for participants to make tax elections with respect to their equity awards.

The Company recognized a net total of $9.8 and $7.7 of stock compensation expense for the three months ended April 2, 2020 and March 28, 2019, respectively.

Holdings has established the Long-Term Incentive Plan (the “LTIP”) under the Omnibus Plan to grant equity awards to certain employees of the Company. Generally, specified employees are entitled to receive a long-term incentive award that, for the 2020 year, consisted of the following:


•	60% of the award consisted of time-based, service-condition restricted Common Stock that vests in equal installments over a three-year period (the “RS Award”). Values for these awards are based on the value of Common Stock on the grant date.


•	20% of the award consisted of performance-based, market-condition restricted Common Stock that vests on the three-year anniversary of the grant date contingent upon TSR compared to the Company’s peers (the “TSR Award”). Values

for these awards are initially measured on the grant date using estimated payout levels derived from a Monte Carlo valuation model.

•

20% of the award consisted of performance-based, (performance-condition) restricted Common Stock that vests on the three-year anniversary of the grant date contingent upon the Company’s cumulative three-year free cash flow as a percentage of the Company’s cumulative three-year revenues meeting certain pre-established goals (the “FCF Percentage Award”). Values for these awards are based on the dividend adjusted value of Common Stock on the grant date.

During the three months ended April 2, 2020, 324,756 shares, 197,258 shares, and 175,815 shares of Common Stock with aggregate grant date fair values of $16.6, $6.2 and $9.2 were granted as RS Awards, TSR Awards, and FCF Percentage Awards under the Company’s LTIP. During the three months ended April 2, 2020, 38,249 shares of Common Stock with aggregate grant date fair values of $2.5 were granted and vested as a result of a union ratification bonus. Additionally, 443,775 shares of Common Stock with an aggregate grant date fair value of $29.7 under the LTIP vested during the three months ended April 2, 2020.