Stock-Based Compensation

12 Months Ended

Apr. 02, 2022

Share-Based Payment Arrangement [Abstract]

The Company maintains stock incentive plans whereby stock option grants or awards of RSUs may be made to certain officers, directors and key employees. The plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 283,208 shares were still available for grant as of April 2, 2022. Upon option exercise, new shares of the Company's common stock are issued and when RSUs vest, unrestricted shares are issued. The exercise price of stock option awards may not be below 100% of the fair market value of the Company's common stock at the date of grant. Stock options generally expire seven years from the date of grant. Stock options and awards of RSUs vest over a defined period or based on certain performance criteria, as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors), but typically is no more than five years. The stock incentive plans provide for accelerated vesting of stock option awards and RSUs upon a change in control (as defined in the plans).

We apply the fair value recognition provisions of ASC 718. Stock compensation expense was approximately $5.1 million, $4.4 million and $3.9 million for fiscal years 2022, 2021 and 2020, respectively. As of April 2, 2022, total unrecognized compensation cost was approximately $6.3 million and the related weighted-average period over which it is expected to be recognized is approximately 1.87 years.

Stock Options. The following table summarizes stock option activity for fiscal years 2022, 2021 and 2020:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at March 30, 2019	411,111	$	102.71
Granted	74,750	145.24
Exercised	(120,687)	63.66
Canceled or expired	(1,000)	99.65
Outstanding at March 28, 2020	364,174	$	123.93	4.02	$	49,000
Granted	39,800	177.61
Exercised	(131,567)	90.49
Canceled or expired	(20,658)	148.95
Outstanding at April 3, 2021	251,749	$	146.86	4.04	$	34,266
Granted	—	—
Exercised	(53,550)	107.58
Canceled or expired	(5,286)	164.49
Outstanding at April 2, 2022	192,913	$	157.23	3.34	$	16,724

Exercisable at March 28, 2020	179,133	$	100.82	2.83	$	25,423
Exercisable at April 3, 2021	108,588	$	132.48	3.22	$	15,549
Exercisable at April 2, 2022	126,948	$	149.90	2.82	$	11,941

There were no grants of stock options in fiscal year 2022. The weighted-average estimated fair value of employee stock options granted during fiscal years 2021 and 2020 was $69.65 and $46.84 per share, respectively, using the following weighted average assumptions:


	Fiscal Year
	2021		2020
Volatility	47.5	%	36.0	%
Risk-free interest rate	0.3	%	2.0	%
Dividend yield	—	%	—	%
Expected option life in years	4.56		4.33
Estimated forfeiture rate	7.0	%	7.0	%

The total intrinsic value of options exercised during fiscal years 2022, 2021 and 2020 was $7.9 million, $16.7 million and $15.7 million, respectively.

Restricted Stock Awards. A summary of RSU activity for fiscal years 2022, 2021 and 2020 is as follows:


	Number of Shares
	Performance-Based Awards	Service-Based Awards	Total
Outstanding at March 30, 2019	—	—	—
Awarded	7,305	4,900	12,205
Released	—	(400)	(400)
Canceled or expired	—	—	—
Outstanding at March 28, 2020	7,305	4,500	11,805
Awarded	7,450	3,550	11,000
Released	—	(3,465)	(3,465)
Canceled or expired	(1,816)	—	(1,816)
Outstanding at April 3, 2021	12,939	4,585	17,524
Awarded	7,920	16,902	24,822
Released	—	(3,335)	(3,335)
Canceled or expired	(805)	(505)	(1,310)
Outstanding at April 2, 2022	20,054	17,647	37,701
Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2022	6,333
Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2023	6,201
Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2024	7,520