Stock-Based Compensation

9 Months Ended

Sep. 28, 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 5,048 restricted stock units (“RSUs”) at a weighted average grant-date fair value of $150.84 per unit for the three months ended September 28, 2024. The Company granted 293,602 RSUs at a weighted average grant-date fair value of $115.21 per unit for the nine months ended September 28, 2024. The Company granted 1,250 RSUs at a weighted average of grant-date fair value of $103.07 per unit for the three months ended September 30, 2023. The Company granted 262,677 RSUs at a weighted average grant-date fair value of $102.09 per unit for the nine months ended September 30, 2023. The Company recognized stock-based compensation expense related to RSUs of $7.0 million ($5.2 million net of taxes) and $5.3 million ($4.0 million net of taxes) for the three months ended September 28, 2024 and September 30, 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 RSUs of $20.6 million ($15.2 million net of taxes) and $15.7 million ($11.6 million net of taxes) for the nine months ended September 28, 2024 and September 30, 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 $25.7 million as of September 28, 2024, and will be recognized as expense over a weighted-average period of approximately 1.79 years.