Stock-based Compensation Plans

3 Months Ended

Mar. 29, 2020

Share-based Payment Arrangement [Abstract]

The Company recognized stock-based compensation expense as follows for the periods indicated:



	THIRTEEN WEEKS ENDED
(dollars in thousands)	MARCH 29, 2020		MARCH 31, 2019
Stock options	$	832	$	1,159
Restricted stock units	1,683		1,749
Performance-based share units	699		1,003
	$	3,214	$	3,911

During the thirteen weeks ended March 29, 2020, the Company made grants of 0.1 million stock options, 0.3 million time-based restricted stock units and 0.5 million performance-based share units.

Assumptions used in the Black-Scholes option pricing model and the weighted-average fair value of option awards granted were as follows for the periods indicated:



	THIRTEEN WEEKS ENDED
	MARCH 29, 2020			MARCH 31, 2019
Assumptions:
Weighted-average risk-free interest rate (1)	0.90		%	2.51		%
Dividend yield (2)	4.34		%	1.89		%
Expected term (3)	5.5 years			5.5 years
Weighted-average volatility (4)	30.43		%	31.87		%

Weighted-average grant date fair value per option	$	3.12		$	5.76

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(1)	Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for periods within the expected term of the option.


(2)	Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term of the option.


(3)	Expected term represents the period of time that the options are expected to be outstanding. The Company estimates the expected term based on historical exercise experience for its stock options.


(4)	Based on the historical volatility of the Company’s stock.

The following represents unrecognized stock compensation expense and the remaining weighted-average vesting period as of March 29, 2020:



	UNRECOGNIZED COMPENSATION EXPENSE (dollars in thousands)		REMAINING WEIGHTED-AVERAGE VESTING PERIOD (in years)
Stock options	$	6,127	1.8
Restricted stock units	$	16,967	2.2
Performance-based share units	$	14,016	2.3