Common Stock Repurchases

9 Months Ended

Sep. 26, 2020

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Common Stock Repurchases

11. Common Stock Repurchases

We periodically repurchase, at the then current market price, and cancel shares of Dorman common stock issued to the Dorman Products, Inc. 401(k) Retirement Plan and Trust (the “401(k) Plan”). 401(k) Plan participants can no longer purchase shares of Dorman common stock as an

investment option under the 401(k) Plan. Shares are purchased from the 401(k) Plan when participants sell units as permitted by the 401(k) Plan or elect to leave the 401(k) Plan upon retirement, termination or other reasons. For the nine months ended September 26, 2020, we repurchased and cancelled 15,280 shares of common stock held in the 401(k) Plan for $1.1 million at an average price of $73.49 per share. During the year ended December 28, 2019, we repurchased and cancelled 22,380 shares of common stock held in the 401(k) Plan for $1.9 million at an average price of $87.26 per share.

Our Board of Directors authorized a share repurchase program of up to $400 million through December 31, 2020. Under this program, share repurchases may be made from time to time depending on market conditions, share price, share availability and other factors at our discretion. The share repurchase program does not obligate us to acquire any specific number of shares. For the nine months ended September 26, 2020, we repurchased and cancelled 218,836 shares of common stock for $16.2 million at an average price of $73.99 per share under this program. For the year ended December 28, 2019, we repurchased and cancelled 499,564 shares of common stock for $39.4 million at an average price of $78.84 per share under this program. At September 26, 2020, $127.7 million was available for repurchase under this share repurchase program.

On October 27, 2020, the Company’s Board of Directors approved a resolution to increase and extend its share repurchase program by an additional $100 million, raising the aggregate authorization under the program to $500 million and extending it through December 31, 2022.