Stock-Based Compensation

6 Months Ended

Jul. 01, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

At July 1, 2015, options to purchase 2,206,599 shares of common stock were outstanding, including 1,548,844 vested and 657,755 unvested. Unvested options vest over time, or upon our achieving annual financial goals. However, upon a change in control, the board may accelerate vesting. At July 1, 2015, 1,739,367 premium options remained outstanding. For the thirteen and twenty-six weeks ended July 1, 2015, there were exercises of stock options for 825,187 and 844,907 shares, respectively. For the twenty-six weeks ended June 25, 2014, there was one exercise of stock options for 739 shares.

At July 1, 2015 there were 6,666 restricted shares outstanding. Restricted shares vest over time.

At July 1, 2015, we had total unrecognized compensation expense of $1.0 million, related to unvested stock options and restricted shares, which we expect to recognize over a weighted-average period of 2.3 years.

Total stock-based compensation expense was $146,000 and $443,000 for the thirteen and twenty-six weeks ended July 1, 2015, and was $168,000 and $337,000 for the thirteen and twenty-six weeks ended June 25, 2014, respectively.