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Stock-Based Compensation
9 Months Ended
Sep. 27, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
STOCK-BASED COMPENSATION
At September 27, 2017, options to purchase 2,302,319 shares of common stock were outstanding, including 1,892,062 vested and 410,257 unvested. Unvested options vest over time. However, upon a change in control, the board may accelerate vesting. At September 27, 2017, 1,563,549 premium options, options granted above the stock price at date of grant, remained outstanding. There were no stock option exercises during the thirteen weeks ended September 27, 2017 and 17,661 stock option exercises during the thirty-nine weeks ended September 27, 2017. For the thirteen and thirty-nine weeks ended September 28, 2016, there were stock option exercises of 32,386 and 147,726 shares, respectively. For the thirteen weeks ended September 27, 2017, there were no stock options granted, and for the thirty-nine weeks ended September 27, 2017, 128,252 stock options were granted at the fair market value on the date of grant. For the thirteen and thirty-nine weeks ended September 28, 2016, there were stock option grants of 9,875 and 329,673, respectively, granted at the fair market value on the date of grant. At September 27, 2017, the Company had total unrecognized compensation expense of $1.4 million related to unvested stock options, which it expects to recognize over a weighted-average period of 2.9 years.
For the thirteen and thirty-nine weeks ended September 27, 2017, 1,248 and 170,924 restricted shares were granted, respectively, at the fair market value on the date of grant. There were 21,453 and 29,259 restricted shares granted at the fair market value on the date of grant during the thirteen and thirty-nine weeks ended September 28, 2016, respectively. The restricted shares will vest ratably over four years for employees and three years for directors, from their grant date. At September 27, 2017, there were 187,710 unvested restricted shares outstanding. At September 27, 2017, the Company had total unrecognized compensation expense of $2.4 million related to unvested restricted shares, which it expects to recognize over a weighted-average period of 3.4 years.
Total stock-based compensation expense was $0.3 million and $0.7 million for the thirteen and thirty-nine weeks ended September 27, 2017, respectively, and $0.1 million and $0.2 million for the thirteen and thirty-nine weeks ended September 28, 2016, respectively. In connection with the separation of its former audit committee chair, during the thirty-nine weeks ended September 27, 2017, the Company modified previously granted equity awards to allow for additional time to exercise previously vested awards following his separation date. As a result, the Company incurred incremental stock-based compensation expense of less than $0.1 million for the thirty-nine weeks ended September 27, 2017.