Stock-Based Compensation

3 Months Ended

Mar. 29, 2025

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 304,989 restricted stock units (“RSUs”) at a weighted average grant-date fair value of $116.08 per unit for the three months ended March 29, 2025. The Company granted 288,554 RSUs at a weighted average of grant-date fair value of $114.59 per unit for the three months ended March 30, 2024. The Company recognized stock-based compensation expense related to RSUs of $7.6 million ($5.6 million net of taxes) and $6.8 million ($5.0 million net of taxes) for the three months ended March 29, 2025, and March 30, 2024, 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 $43.9 million as of March 29, 2025, and will be recognized as expense over a weighted-average period of approximately 2.28 years.