Stockholders' Equity and Stock Compensation Plans

6 Months Ended

Mar. 30, 2025

Stockholders' Equity Note [Abstract]

Stockholders' Equity and Stock Compensation Plans

Stockholders’ Equity and Stock Compensation Plans

We recognize the fair value of our stock-based awards as compensation expense on a straight-line basis over the requisite service period in which the award vests. Stock-based compensation expense for the three and six months ended March 30, 2025 was $8.9 million and $17.0 million, compared to $8.0 million and $15.6 million for the same periods last year. Most of these amounts were included in our selling, general and administrative expenses on our consolidated statements of income. In the first half of fiscal 2025, we awarded 236,928 performance share units (“PSUs”) to our non-employee directors and executive officers at an estimated fair value of $49.85 per share on the award date. All PSUs are performance-based and vest, if at all, after the conclusion of the three-year performance period. The number of PSUs that ultimately vest is based 50% on growth in our diluted earnings per share and 50% on our relative total shareholder return over the vesting period. Additionally, we awarded 486,307 restricted stock units (“RSUs”) to our non-employee directors, executive officers and employees at a fair value of $40.27 per share on the award date. All executive officer and employee RSUs have time-based vesting over a four-year period, and the non-employee director RSUs vest after one year.