STOCK-BASED COMPENSATION

12 Months Ended

Dec. 30, 2023

Share-Based Payment Arrangement [Abstract]

We award stock-based compensation to employees and directors under the 2018 Equity and Incentive Compensation Plan (“2018 Plan”), which was adopted by our Board of Directors and became effective upon the completion of our initial public offering in October 2018. The 2018 Plan replaced the 2012 Equity and Performance Incentive Plan, as amended and restated on June 20, 2018 (the “2012 Plan”). Any remaining shares available for issuance under the 2012 Plan as the date of our initial public offering in October 2018 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”) and performance-based restricted stock unit awards (“PBRSUs”) cliff vest based on the attainment of certain predetermined three-year cumulative performance goals over a three-year performance period subject to continued employment. 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 RSUs 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 $29.8 million, $17.8 million, and $15.5 million for 2023, 2022, and 2021, respectively. The related income tax benefits were $5.1 million, $3.8 million, and $12.9 million for 2023, 2022, and 2021, respectively. As of December 30, 2023, total unrecognized stock-based compensation expense of $50.4 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 2.0 years.

Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units

Stock-based activity, excluding options, for the year ended December 30, 2023 is summarized below (in thousands, except per share data):


	Performance-Based Restricted Stock Awards and Performance-Based Restricted Stock Units			Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units
	Number of PBRSs and PBRSUs	Weighted Average Grant Date Fair Value			Number of RSUs, RSAs, and DSUs	Weighted Average Grant Date Fair Value
Nonvested, December 31, 2022	233	$	53.63		812	$	51.28
Granted	279	38.59			1,009	38.81
Vested/released	(99)	32.84			(383)	51.74
Forfeited/expired	(15)	64.98			(126)	47.01
Nonvested, December 30, 2023	398	$	48.14		1,312	$	41.99

As of December 30, 2023, the weighted average remaining contractual term of PBRSs and PBRSUs was 2.0 years and the aggregate intrinsic value of PBRSs and PBRSUs expected to vest was $9.3 million. The weighted average remaining contractual term of RSUs, RSAs, and DSUs was 1.9 years and the aggregate intrinsic value of RSUs, RSAs, and DSUs was $41.1 million as of December 30, 2023.

The following table summarizes additional information about PBRSs PBRSUs, RSUs, RSAs, and DSUs (in thousands, except per share data):


	Fiscal Year Ended
	December 30, 2023		December 31, 2022		January 1, 2022
Weighted average grant date fair value per share of awards granted	$	38.74	$	52.42	$	79.06
Total grant date fair value of awards vested	$	19,828	$	11,602	$	7,145
Intrinsic value of awards vested	$	16,485	$	12,434	$	19,346

Stock Options

There have been no new grants of options since 2019 and all options outstanding as of December 31, 2022 and December 30, 2023 were exercisable. We had no unrecognized compensation cost related to stock options and no non-vested stock options as of December 30, 2023 or December 31, 2022. 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 31, 2022	642	$	20.10	5.93

Exercised	(64)	24.41


Balance, December 30, 2023	578	$	19.62	4.89	$	18,550
Exercisable, December 30, 2023	578	$	19.62	4.89	$	18,550

The total intrinsic value of stock options exercised was $1.0 million, $3.3 million, and $33.1 million for 2023, 2022, and 2021, respectively. The income tax benefits related to stock options exercised were $0.2 million, $0.8 million, and $8.1 million for 2023, 2022, and 2021, respectively. The total grant date fair value of stock options vested was $1.7 million, and $2.2 million for 2022, and 2021, respectively.