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Stock-Based Compensation
 9 Months Ended
Sep. 27, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
STOCK-BASED COMPENSATION
The Company maintains an equity incentive plan, the 2014 Omnibus Incentive Plan, as amended and restated effective as of October 27, 2022 (the 2014 Omnibus Plan), to govern awards granted to V2X employees and directors, including nonqualified stock options (NQOs), restricted stock units (RSUs), total shareholder return (TSR) awards, performance share units (PSUs) and other awards. The Company accounts for NQOs, stock-settled RSUs and PSUs as equity-based compensation awards. TSR awards, described below, are accounted for as liability-based compensation awards. Liability-based awards are revalued at the end of each reporting period to reflect changes in fair value.
Stock-based compensation expense and the associated tax benefits impacting the Company's Condensed Consolidated Statements of Income (Loss) were as follows:
Three Months EndedNine Months Ended
September 27,September 29,September 27,September 29,
(In thousands)2024202320242023
Compensation costs for equity-based awards$974 $5,939 $12,252 $25,775 
Compensation costs for liability-based awards106 424 622 1,033 
Total compensation costs, pre-tax$1,080 $6,363 $12,874 $26,808 
Future tax benefit$275 $1,688 $3,283 $7,112 
As of September 27, 2024, total unrecognized compensation costs related to equity-based awards and liability-based awards were $17.2 million and $0.04 million, respectively, which are expected to be recognized ratably over a weighted average period of 1.33 years and 0.26 years, respectively.
The following table provides a summary of the activities for NQOs, RSUs and PSUs for the nine months ended September 27, 2024:
NQOsRSUsPSUs
(In thousands, except per share data)SharesWeighted Average Exercise Price Per ShareSharesWeighted Average Grant Date Fair Value Per ShareSharesWeighted Average Grant Date Fair Value Per Share
Outstanding at January 1, 202440 $22.93 800 $37.29 267 $43.45 
Granted— $— 316 $45.58 161 $45.44 
Exercised(6)$25.90 — $— — $— 
Vested— $— (549)$37.33 (9)$46.45 
Forfeited or expired— $— (109)$42.42 (157)$36.26 
Outstanding at September 27, 202434 $22.43 458 $41.35 262 $43.55 
Restricted Stock Units
RSUs awarded to employees vest in one-third increments on each of the three anniversary dates following the grant date subject to continued employment as described in the RSU award agreement. RSUs issued to directors are typically granted annually and vest approximately one year after the grant date. The fair value of each RSU grant was determined based on the closing price of V2X common stock on the date of grant. Stock compensation expense will be recognized ratably over the requisite service period of the RSU awards.
As of September 27, 2024, there was $12.1 million of unrecognized RSU related compensation expense.
Total Shareholder Return Awards
TSR awards are performance-based cash awards that are subject to a three-year performance period. Any payments earned are made in cash following completion of the performance period according to the achievement of specified performance goals. There were no cash-based TSR awards granted in the first nine months of 2024. As of September 27, 2024, there was $0.04 million of unrecognized TSR related compensation expense.
Performance Share Units
During the first nine months of 2024, the Company granted performance-based awards with market conditions. The awards will vest and the stock will be issued at the end of a three-year period based on the attainment of certain total shareholder return performance measures as compared to peer group companies, and the employee's continued service through the vesting date. The number of shares ultimately awarded, if any, can range up to 200% of the specified target awards. If performance is below the threshold level of performance, no shares will be issued.
As of September 27, 2024, there was $5.1 million of unrecognized PSU related compensation expense.