Shareholders' Deficit

12 Months Ended

Dec. 30, 2023

Share-Based Payment Arrangement [Abstract]

Shareholders’ Deficit

Shareholders’ Deficit

Stock-Based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):

	2023		2022		2021
Stock awards(1)	$	11,053	$	9,471	$	20,216
Stock options	3,802		3,752		2,998
Total stock-based compensation expense(1)	14,855		13,223		23,214
Income tax benefit	3,476		3,319		5,722
Total stock-based compensation expense, net of tax	$	11,379	$	9,904	$	17,492

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(1)    Changes in annual stock-based compensation expense includes the cumulative impact of the change in the expected achievements of certain performance targets.

Stock Options

A summary of the Company’s stock option activity was as follows (in thousands, except per share amounts and years):

	Stock Options	Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (1)
Outstanding at December 31, 2022	787	$	46.02	6.1	$	829
Granted	305	27.30
Exercised	(20)	21.43
Canceled/Forfeited	(26)	55.69
Outstanding at December 30, 2023	1,046	$	40.80	6.2	$	—
Exercisable at December 30, 2023	654	$	42.08	4.5	$	—
Vested and expected to vest at December 30, 2023	1,014	$	40.87	6.1	$	—

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(1)    Aggregate intrinsic value includes only those options where the current share price is equal to or greater than the share price on the date of grant.

Other information pertaining to options was as follows (in thousands, except per share amounts):

	2023		2022		2021
Weighted-average grant date fair value of stock options granted	$	16.41	$	30.22	$	71.93
Total intrinsic value (at exercise) of stock options exercised	$	298	$	1,298	$	16,003

Cash received from the exercise of stock options for the fiscal year ended December 30, 2023 was $0.4 million. The Company’s tax benefit related to the exercise of stock options for the fiscal year ended December 30, 2023 was $0.1 million.

At December 30, 2023, there was $5.2 million of total stock option compensation expense related to non-vested stock options not yet recognized, which is expected to be recognized over a weighted-average period of 1.9 years.

The assumptions used to calculate the fair value of options granted using the Black-Scholes-Merton option-pricing model were as follows:

Valuation Assumptions	2023		2022		2021
Expected dividend yield	0.0	%	0.0	%	0.0	%
Expected volatility	64	%	57	%	58	%
Risk-free interest rate	3.8	%	2.2	%	0.9	%
Expected term (years)	5.7		5.3		5.2

Stock Awards

Stock award activity was as follows (in thousands, except per share amounts):

	Time- Based Stock Awards	Weighted-Average Grant Date Fair Value		Performance- Based Stock Awards	Weighted-Average Grant Date Fair Value
Outstanding at December 31, 2022	261	$	61.88	501	$	66.33
Granted	304	26.10		440	28.85
Vested	(127)	57.10		(201)	36.84
Canceled/Forfeited	(41)	48.64		(41)	61.15
Outstanding at December 30, 2023	397	$	37.38	699	$	51.74

At December 30, 2023, there was $8.7 million of unrecognized compensation expense related to non-vested time-based stock awards, which is expected to be recognized over a weighted-average period of 1.7 years, and $7.8 million of unrecognized compensation expense related to non-vested performance-based stock awards, which is expected to be recognized over a weighted-average period of 2.1 years.

Repurchases of Common Stock

Repurchases of the Company’s common stock were as follows (in thousands):

	2023		2022		2021
Amount repurchased under Board-approved share repurchase program	$	—	$	54,868	$	364,479
Amount repurchased in connection with the vesting of employee restricted stock grants	3,747		9,320		17,897
Total amount repurchased (based on trade dates)	$	3,747	$	64,188	$	382,376

As of December 30, 2023, the remaining authorization under the Board-approved $600 million share repurchase program was $348 million.

Net (Loss) Income per Common Share

The components of basic and diluted net (loss) income per share were as follows (in thousands, except per share amounts):

	2023		2022		2021
Net (loss) income	$	(15,287)	$	36,610	$	153,746
Reconciliation of weighted-average shares outstanding:
Basic weighted-average shares outstanding	22,429		22,396		24,038
Dilutive effect of stock-based awards	—		456		909
Diluted weighted-average shares outstanding	22,429		22,852		24,947
Net (loss) income per share – basic	$	(0.68)	$	1.63	$	6.40
Net (loss) income per share – diluted	$	(0.68)	$	1.60	$	6.16

Additional potential dilutive stock-based awards totaling 1.3 million, 0.6 million and 0.9 million for 2023, 2022 and 2021, respectively, have been excluded from the diluted net (loss) income per share calculations because these stock-based awards were anti-dilutive. For 2023, otherwise dilutive stock-based awards of $0.1 million have been excluded from the calculation of diluted weighted-average shares outstanding, as their inclusion would have had an anti-dilutive effect on net loss per diluted share.