Shareholders' Equity

9 Months Ended

Sep. 29, 2019

Stockholders' Equity Note [Abstract]

SHAREHOLDERS’ EQUITY

The following tables depict the activity in the accounts which make up shareholders’ equity for the three and nine months ended September 29, 2019 and September 30, 2018:



	SHARES		COMMON STOCK			ADDITIONAL PAID-IN CAPITAL			RETAINED EARNINGS			PENSION LIABILITY			FOREIGN CURRENCY TRANSLATION ADJUSTMENT			CASH FLOW HEDGE
	(In thousands)
Balance at December 30, 2018	59,508		$	5,951		$	270,269		$	222,214		$	(43,610	)	$	(101,487	)	$	1,326
Net income	—		—			—			7,059			—			—			—
Stock issuances under employee plans	509		51			379			—			—			—			—
Other issuances of common stock	224		22			3,900			—			—			—			—
Unamortized stock compensation expense related to restricted stock awards	—		—			(3,922		)	—			—			—			—
Cash dividends paid	—		—			—			(3,900		)	—			—			—
Forfeitures and compensation expense related to stock awards	(225	)	(22		)	29			—			—			—			—
Share repurchases	—		—			—			—			—			—			—
Pension liability adjustment	—		—			—			—			(91		)	—			—
Foreign currency translation adjustment	—		—			—			—			—			(5,203		)	—
Cash flow hedge unrealized loss	—		—			—			—			—			—			(3,306		)
Balance, at March 31, 2019	60,016		$	6,002		$	270,655		$	225,373		$	(43,701	)	$	(106,690	)	$	(1,980	)
Net income	—		—			—			29,499			—			—			—
Stock issuances under employee plans	2		—			6			—			—			—			—
Other issuances of common stock	(1	)	—			—			—			—			—			—
Unamortized stock compensation expense related to restricted stock awards	—		—			52			—			—			—			—
Cash dividends paid	—		—			—			(3,863		)	—			—			—
Forfeitures and compensation expense related to stock awards	(28	)	(3		)	1,506			—			—			—			—
Share repurchases	(1,556	)	(156		)	(24,998		)	—			—			—			—
Pension liability adjustment	—		—			—			—			829			—			—
Foreign currency translation adjustment	—		—			—			—			—			4,249			—
Cash flow hedge unrealized loss	—		—			—			—			—			—			(4,667		)
Balance, at June 30, 2019	58,433		$	5,843		$	247,221		$	251,009		$	(42,872	)	$	(102,441	)	$	(6,647	)
Net income	—		—			—			26,210			—			—			—
Stock issuances under employee plans	—		—			—			—			—			—			—
Other issuances of common stock	—		—			—			—			—			—			—
Unamortized stock compensation expense related to restricted stock awards	—		—			—			—			—			—			—
Cash dividends paid	—		—			—			(3,798		)	—			—			—
Forfeitures and compensation expense related to stock awards	—		—			1,303			—			—			—			—
Share repurchases	—		—			—			—			—			—			—
Pension liability adjustment	—		—			—			—			1,076			—			—
Foreign currency translation adjustment	—		—			—			—			—			(18,585		)	—
Cash flow hedge unrealized loss	—		—			—			—			—			—			(941		)
Balance at September 29, 2019	58,433		$	5,843		$	248,524		$	273,421		$	(41,796	)	$	(121,026	)	$	(7,588	)



	SHARES		COMMON STOCK			ADDITIONAL PAID-IN CAPITAL			RETAINED EARNINGS			PENSION LIABILITY			FOREIGN CURRENCY TRANSLATION ADJUSTMENT			CASH FLOW HEDGE
	(In thousands)
Balance, at December 31, 2017	59,806		$	5,981		$	271,271		$	187,433		$	(56,554	)	$	(78,943	)	$	904
Net income	—		—			—			15,084			—			—			—
Stock issuances under employee plans	175		17			102			—			—			—			—
Other issuances of common stock	187		19			4,769			—			—			—			—
Unamortized stock compensation expense related to restricted stock awards	—		—			(4,788		)	—			—			—			—
Cash dividends paid	—		—			—			(3,868		)	—			—			—
Forfeitures and compensation expense related to stock awards	(55	)	(6		)	3,185			—			—			—			—
Share repurchases	(615	)	(61		)	(14,424		)	—			—			—			—
Pension liability adjustment	—		—			—			—			(2,216		)	—			—
Foreign currency translation adjustment	—		—			—			—			—			8,830			—
Cash flow hedge unrealized gain	—		—			—			—			—			—			1,632
Balance, at April 1, 2018	59,498		$	5,950		$	260,115		$	198,649		$	(58,770	)	$	(70,113	)	$	2,536
Net income	—		—			—			20,602			—			—			—
Stock issuances under employee plans	4		—			35			—			—			—			—
Other issuances of common stock	—		—			—			—			—			—			—
Unamortized stock compensation expense related to restricted stock awards	—		—			—			—			—			—			—
Cash dividends paid	—		—			—			(3,868		)	—			—			—
Forfeitures and compensation expense related to stock awards	(9	)	(1		)	2,135			—			—			—			—
Share repurchases	—		—			—			—			—			—			—
Pension liability adjustment	—		—			—			—			3,459			—			—
Foreign currency translation adjustment	—		—			—			—			—			(20,773		)	—
Cash flow hedge unrealized gain	—		—			—			—			—			—			647
Balance, at July 1, 2018	59,493		$	5,949		$	262,285		$	215,383		$	(55,311	)	$	(90,886	)	$	3,183
Net income	—		—			—			8,172			—			—			—
Stock issuances under employee plans	10		1			86			—			—			—			—
Other issuances of common stock	2		1			40			—			—			—			—
Unamortized stock compensation expense related to restricted stock awards	—		—			(40		)	—			—			—			—
Cash dividends paid	—		—			—			(3,866		)	—			—			—
Forfeitures and compensation expense related to stock awards	—		—			2,929			—			—			—			—
Share repurchases	—		—			—			—			—			—			—
Pension liability adjustment	—		—			—			—			(196		)	—			—
Foreign currency translation adjustment	—		—			—			—			—			4,964			—
Cash flow hedge unrealized gain	—		—			—			—			—			—			286
Balance, at September 30, 2018	59,505		$	5,951		$	265,300		$	219,689		$	(55,507	)	$	(85,922	)	$	3,469

Repurchase of Common Stock

In the second quarter of 2017, the Company adopted a share repurchase program in which the Company was authorized to repurchase up to $100.0 million of its outstanding shares of common stock. During the second quarter of 2019, the Company repurchased the remaining $25.2 million of its outstanding shares of common stock authorized pursuant to this share repurchase program, thus completing the program.

Stock Option Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award.

All outstanding stock options vested prior to the end of 2013, and therefore there was no stock option compensation expense in the first nine months of 2019 or 2018.

As of September 29, 2019, there were 27,500 stock options outstanding and exercisable, at an average exercise price of $12.43 per share. There were no stock options granted in 2019 or 2018. There were 10,000 stock options exercised and 5,000 stock options forfeited in the first nine months of 2019. There were 20,000 stock options exercised in the first nine months of 2018 and no forfeitures during those nine months. The aggregate intrinsic value of the outstanding and exercisable stock options was not significant as of September 29, 2019.

Restricted Stock Awards

During the nine months ended September 29, 2019 and September 30, 2018, the Company granted restricted stock awards for 224,000 and 194,000 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a one to three-year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was $2.5 million and $2.9 million for the nine months ended September 29, 2019, and September 30, 2018, respectively. The Company estimates forfeitures for restricted stock and reduces compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate actual experience against the assumed forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of September 29, 2019, as well as activity during the nine months then ended:



	Restricted Shares		Weighted Average Grant Date Fair Value
Outstanding at December 30, 2018	549,000		$	27.65
Granted	224,000		17.54
Vested	(218,000	)	18.27
Forfeited or canceled	(37,000	)	20.88
Outstanding at September 29, 2019	518,000		$	27.71

As of September 29, 2019, the unrecognized total compensation cost related to unvested restricted stock was $4.7 million. That cost is expected to be recognized by the end of 2022.

Performance Share Awards

During the nine months ended September 29, 2019 and September 30, 2018, the Company issued awards of performance shares to certain employees. These awards vest based on the achievement of certain performance-based goals over a performance period of one to three years, subject to the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company’s election. The number of shares that may be issued in settlement of the performance shares to the award recipients may be greater (up to 200%) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards.

The following table summarizes the performance shares outstanding as of September 29, 2019, as well as the activity during the nine months then ended:



	Shares		Weighted Average Grant Date Fair Value
Outstanding at December 30, 2018	759,500		$	20.17
Granted	344,500		17.54
Vested	(472,000	)	18.85
Forfeited or canceled	(57,000	)	20.42
Outstanding at September 29, 2019	575,000		$	19.65

Compensation expense related to the performance shares was $4.0 million and $6.3 million for the nine months ended September 29, 2019, and September 30, 2018, respectively. Unrecognized compensation expense related to these performance shares was approximately $4.8 million as of September 29, 2019. That cost is expected to be recognized by the end of 2022.

The tax benefits recognized with regard to restricted stock and performance shares were approximately $1.1 million for the nine months ended September 29, 2019.