STOCK-BASED COMPENSATION

12 Months Ended

Jan. 03, 2026

Share-Based Payment Arrangement [Abstract]

We award stock-based compensation to employees, non-employee directors, and certain consultants under the 2024 Equity and Incentive Compensation Plan (“2024 Plan”). The 2024 Plan was approved by the Company’s stockholders in May 2024 and replaced the 2018 Equity and Incentive Compensation Plan (the “2018 Plan”). No new awards will be granted under the 2018 Plan. The 2018 Plan replaced the 2012 Equity and Performance Incentive Plan, as amended and restated on June 20, 2018 (the “2012 Plan”). Awards outstanding under the 2018 Plan or the 2012 Plan will continue to remain outstanding according to their terms. Shares subject to stock awards granted under the 2018 Plan or the 2012 Plan (a) that expire or terminate without being exercised or (b) that are forfeited under an award, return to the 2024 Plan.

Subject to certain equitable adjustments and share counting rules, the 2024 Plan provides for up to 3.5 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 2018 Plan provided for up to 4.8 million shares of authorized stock to be awarded as stock options, appreciation rights, RSAs, RSUs, 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 to employees 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. At the election of the grantee, deferred stock units (“DSUs”) are issued to non-employee directors in lieu of RSUs or certain cash compensation. DSUs and RSUs granted to non-employee directors generally vest one year from the grant date.

We recognized non-cash stock-based compensation expense of $47.7 million, $40.7 million, and $29.8 million for 2025, 2024, and 2023, respectively. The related income tax benefits were $7.0 million, $5.9 million, and $5.1 million for 2025, 2024, and 2023, respectively. As of January 3, 2026, total unrecognized stock-based compensation expense of $52.8 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 1.9 years.

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

Stock-based activity, excluding options, for the year ended January 3, 2026 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 28, 2024	507	$	42.92		1,444	$	39.54
Granted	231	40.99			1,136	36.73
Vested/released	(86)	64.48			(725)	40.30
Performance adjustment(1)	18	64.48			—	—
Forfeited/expired	(17)	41.28			(221)	38.54
Nonvested, January 3, 2026	653	$	40.03		1,634	$	37.38

_________________________

(1)Represents additional performance-based awards issued as a result of the achievement of actual performance results above the performance targets at grant date.

As of January 3, 2026, the weighted average remaining contractual term of PBRSs and PBRSUs was 1.7 years and the aggregate intrinsic value of PBRSs and PBRSUs expected to vest was $29.3 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 $73.3 million as of January 3, 2026.

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


	Fiscal Year Ended
	January 3, 2026		December 28, 2024		December 30, 2023
Weighted average grant date fair value per share of awards granted	$	37.45	$	39.60	$	38.74
Total grant date fair value of awards vested	$	34,757	$	28,756	$	19,828
Intrinsic value of awards vested	$	29,539	$	24,559	$	16,485

Stock Options

There have been no new grants of options since 2019 and all options outstanding as of December 28, 2024 and January 3, 2026 were exercisable. We had no unrecognized compensation cost related to stock options and no non-vested stock options as of January 3, 2026 or December 28, 2024. 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 28, 2024	559	$	19.72	3.93

Exercised	—	—


Balance, January 3, 2026	559	$	19.72	2.91	$	14,047
Exercisable, January 3, 2026	559	$	19.72	2.91	$	14,047

No stock options were exercised for the year ended January 3, 2026. The total intrinsic value of stock options exercised was $0.4 million and $1.0 million for 2024 and 2023, respectively. The income tax benefits related to stock options exercised were $0.1 million and $0.2 million for 2024 and 2023, respectively.