Stock-Based Compensation

6 Months Ended

Jun. 29, 2024

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company recognizes compensation expense for all stock-based payments granted based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10. Compensation expense is recognized on a straight-line basis over the awards’ estimated lives for fixed awards with ratable vesting provisions.

The Company granted no restricted stock units (“RSUs”) for the three months ended June 29, 2024. The Company granted 0.3 million RSUs at a weighted average grant-date fair value of $101.42 per unit for the six months ended June 29, 2024. The Company granted 0.0 million RSUs at a weighted average of grant-date fair value of $94.86 per unit for the three months ended July 1, 2023. The Company granted 0.3 million RSUs at a weighted average grant-date fair value of $102.09 per unit for the six months ended July 1, 2023. The Company recognized stock-based compensation expense related to the issuance of RSUs of $6.8 million ($5.0 million net of taxes) and $5.4 million ($4.0 million net of taxes) for the three months ended June 29, 2024 and July 1, 2023, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. The Company recognized stock-based compensation costs related to the issuance of RSUs of $13.6 million ($10.1 million net of taxes) and $10.4 million ($7.7 million net of taxes) for the six months ended June 29, 2024 and July 1, 2023, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $31.9 million as of June 29, 2024, and will be recognized as expense over a weighted-average period of approximately 2.00 years.