STOCK BASED COMPENSATION

6 Months Ended

Jun. 27, 2020

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

In October 2018, our Board of Directors adopted the 2018 Equity Incentive Plan (the “2018 Plan”) and ceased granting awards under the 2012 Equity and Performance Incentive Plan (the “2012 Plan”). The 2018 Plan became effective with the completion of our initial public offering (“IPO”) on October 24, 2018. Any remaining shares available for issuance under the 2012 Plan as of our IPO effectiveness date are not available for future issuance. However, shares subject to stock awards granted under the 2012 Plan (a) that expire or terminate without being exercised or (b) that are forfeited under an award, return to the 2018 Plan share reserve for future grant.

Subject to adjustments as described above, the 2018 Plan provides for up to 4.8 million shares of authorized stock to be awarded as stock options, appreciation rights, restricted stock (“RSAs”), restricted stock units (“RSUs”), performance shares, performance units, cash incentive awards, and certain other awards based on or related to shares of our common stock. The 2012 Plan provided for up to 8.8 million shares of authorized stock to be awarded as either stock options or RSUs.

We recognized non-cash stock-based compensation expense of $2.2 million and $4.3 million for the three months ended June 27, 2020 and June 29, 2019, respectively. For the six months ended June 27, 2020 and June 29, 2019, we recognized non-cash stock-based compensation expense of $4.0 million and $8.3 million, respectively. At June 27, 2020, total unrecognized non-cash stock-based compensation expense of $20.6 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 2.3 years.

During the three months ended June 27, 2020, we granted 12,965 RSUs to employees and 8,266 RSUs and 8,266 deferred stock units (“DSUs”) to our non-employee members of the Board of Directors. There were no RSAs or performance-based restricted stock awards (“PBRSs”) granted during the three months ended June 27, 2020.

During the six months ended June 27, 2020, we granted 153,590 RSUs, 193,636 RSAs, and 165,973 PBRSs to employees, and 9,237 RSUs and 8,965 DSUs to our non-employee members of the Board of Directors. No new stock options have been granted during 2020.

RSUs and RSAs generally have a three-year vesting period and vest in accordance with the following schedule: (a) one-third will vest on the first anniversary of the grant date, and (b) an additional one-sixth will vest on the first four six-month anniversaries of the initial vesting date. The vesting criteria for PBRSs are the attainment of certain predetermined performance goals throughout the three-year performance period and remaining employed by us throughout such three-year period. Depending on the estimated probability of attainment of those performance goals, the compensation expense recognized related to the awards could increase or decrease over the remaining vesting period. DSUs generally vest one year from the grant date. Stock options generally have a three-year vesting period and vest in accordance with the following schedule: (a) one-third will vest on the first anniversary of the grant date, and (b) an additional one-sixth will vest on the first four six-month anniversaries of the initial vesting date.

We measure compensation expense for all stock-based awards based on the estimated fair values on the date of the grant. The fair value of stock options granted was estimated using the Black-Scholes option-pricing valuation model. The fair value of RSUs, RSAs, PBRSs, and DSUs are determined using the closing stock price of our common stock on the date of grant.

A summary of the balances of our stock-based compensation plans as of June 27, 2020, and changes during the six months ended June 27, 2020, is presented below (in thousands, except per share data):


	Stock Options				Performance-Based Restricted Stock Awards					Restricted Stock Units and Restricted Stock Awards			Deferred Stock Units
	Number of Options	Weighted Average Exercise Price		Number of PBRSs	Weighted Average Grant Date Fair Value		Number of RSUs and RSAs	Weighted Average Grant Date Fair Value		Number of DSUs	Weighted Average Grant Date Fair Value
Balance, December 28, 2019	1,618	$	16.44	—	$	—	296	$	23.85	23	$	20.39
Granted	—	—		166	32.84		356	32.69		9	29.68
Exercised/released	(167)	8.34		—	—		(85)	23.00		—	—
Forfeited/expired	(117)	21.56		(20)	32.84		(96)	29.43		—	—
Balance, June 27, 2020	1,334	$	17.00	146	$	32.84	471	$	29.55	32	$	23.00