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STOCK-BASED COMPENSATION
 12 Months Ended
Jan. 02, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
In October 2018, the Board adopted the 2018 Plan and ceased granting awards under the YETI Holdings, Inc. 2012 Equity and Performance Incentive Plan, as amended and restated on June 20, 2018 (the “2012 Plan”). The 2018 Plan became effective with the completion of our IPO. 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.

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.

Stock options, RSUs, and RSAs granted generally have a three-year vesting period and vest one-third on the first anniversary of the grant date, and an additional one-sixth vest on each of the first four six-month anniversaries of the initial vesting date. Stock options have a ten year term. Performance-based restricted stock awards (“PBRSs”) vest three years from the grant date, subject to the attainment of certain predetermined performance goals and the grantee remaining employed during the vesting 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. Deferred stock units (“DSUs”) are issued to non-employee directors in lieu of RSU or certain cash compensation at the election of the grantee. DSUs generally vest one year from the grant date.

We recognized non-cash stock-based compensation expense of $9.0 million, $52.3 million, and $13.2 million for 2020, 2019, and 2018, respectively. As of January 2, 2021, total unrecognized stock-based compensation expense of $17.0 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 1.7 years.

Stock Options Fair Value

The exercise price of options granted under the 2012 Plan and 2018 Plan is equal to the estimated fair market value of our common stock at the date of grant. Before our IPO in October 2018, we estimated the fair value of our common stock based on the appraisals performed by an independent valuation specialist. Subsequent to our IPO, we began using the market closing price for our common stock as reported on the New York Stock Exchange.

We estimate the fair value of stock options on the date of grant using a Black-Scholes option-pricing valuation model, which uses the expected option term, stock price volatility, and the risk-free interest rate. The expected option term assumption reflects the period for which we believe the option will remain outstanding. We elected to use the simplified method to determine the expected option term, which is the average of the option’s vesting and contractual term. Our computation of expected volatility is based on the historical volatility of selected comparable publicly-traded companies over a period equal to the expected term of the option. The risk-free interest rate reflects the U.S. Treasury yield curve for a similar instrument with the same expected term in effect at the time of the grant.
The following assumptions were utilized to calculate the fair value of stock options granted during the periods indicated below:

20192018
Expected option term6 years6 years
Expected stock price volatility
27% - 35%
35%
Risk-free interest rate
1.64% - 2.53%
2.99
Expected dividend yield–%–%
Weighted average fair value at date of grant$7.67$7.22

No stock options were granted in 2020.

A summary of the stock options is as follows for the periods indicated (in thousands, except per share data):

Number of
Options
Weighted
Average Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value
Balance, December 30, 20172,884 $5.22 6.10
Granted761 18.00 
Exercised(560)0.47 
Forfeited/cancelled(172)47.91 
Expired(24)53.55 
Balance, December 29, 20182,889 $6.56 6.48
Granted601 23.59 
Exercised(1,730)2.06 
Forfeited/cancelled(142)20.88 
Balance, December 28, 20191,618 $16.44 8.12
Exercised(247)12.23 
Forfeited/cancelled(117)21.56 
Balance, January 2, 20211,254 $16.79 7.22$64,781 
Exercisable, January 2, 2021715 $14.07 6.66$38,917 

The total intrinsic value of stock options exercised was $6.7 million, $46.7 million, and $10.0 million for 2020, 2019, and 2018, respectively. The total grant date fair value of stock options vested was $2.9 million, $12.2 million, and $15.2 million for 2020, 2019, and 2018, respectively.

The following is a summary of our non-vested stock options for the periods indicated (in thousands, except per share data):

 
Shares Under
Outstanding
Options
Weighted
Average Grant
Date Fair Value
Non-vested options at December 28, 20191,044 $7.47 
Granted— — 
Forfeited(117)7.81
Vested(388)7.41
Non-vested options at January 2, 2021539 $7.44 
Stock-based activity, excluding options, for the year ended January 2, 2020 is summarized below (in thousands, except per share data):
Performance-Based Restricted Stock AwardsRestricted Stock Units, Restricted Stock Awards, and Deferred Stock Units
Number of PBRSs
Weighted Average Grant Date Fair Value
Number of RSUs, RSAs, and DSUs
Weighted Average Grant Date Fair Value
Nonvested, December 28, 2019— $— 319 $23.61 
Granted166 32.84 404 33.88 
Vested/released— — (136)23.62 
Forfeited/expired(20)32.84 (114)29.34 
Nonvested, January 2, 2021146 $32.84 473 $30.99 

As of January 2, 2021, the weighted average remaining contractual term of PBRSs was 2.12 years and the aggregate intrinsic value of PBRSs expected to vest was $5.2 million. The weighted average remaining contractual term of RSUs, RSAs, and DSUs was 1.74 years and the aggregate intrinsic value of RSUs, RSAs, and DSUs was $17.7 million as of January 2. 2021.

The following table summarizes additional information about PBRSs, RSUs, RSAs, and DSUs (in thousands, except per share data):
Fiscal Year Ended (1)
January 2,
2021		December 28,
2019		December 29,
2018
Weighted average grant date fair value per share of awards granted$33.58 $23.72 $17.00 
Total grant date fair value of awards vested(2)
$3,215 $168 —
Intrinsic value of awards vested(2)
$5,271 $345 —
_________________________________________
(1)Excludes performance-based RSUs activity. See below for further discussion.
(2)Excludes approximately 10,500 and 13,000 DSUs that vested but were not released in 2020 and 2019, respectively.

Performance-Based Restricted Stock Units

During 2018, our Board of Directors approved the grant of performance-based RSUs (“PRSUs”) to various employees under the 2012 Plan. During 2018, 385,241 of those PRSUs were granted as replacement awards in exchange for 104,411 out-of-the-money stock options, which were cancelled. On November 12, 2019, we completed an underwritten secondary offering. Following the closing of this offering, Cortec Group Fund V, L.P. and its affiliates (collectively, “Cortec”), our largest stockholder at the time, ceased to own more than 35% of the voting power of our outstanding common stock and as a result, the PRSUs granted to various employees during 2018 fully vested pursuant to their terms. In connection with the vesting of the PRSUs, we recognized non-cash stock-based compensation expense of $40.7 million for 2019. The grant date fair value of PRSUs was $31.74 per unit, and the intrinsic value of PRSUs that vested was $38.1 million.