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Share-Based Compensation (Tables)
 12 Months Ended
Jan. 01, 2022
Share-based Payment Arrangement [Abstract]  
Share-based Compensation Expense
The table below summarizes the share-based compensation expense for the years ended January 1, 2022, January 2, 2021, and December 28, 2019. Share-based compensation expense is recorded in SG&A expenses in the Consolidated Statements of Operations. As referenced below: (i) “Performance-based RSUs” represent restricted share units with performance-based vesting, (ii) “Time-based RSUs” represent restricted share units with time-based vesting, (iii) “Stock options” represent non-qualified stock options, (iv) “Director share awards” represent common shares issued in consideration of the annual board retainer fee to non-management members of our Board of Directors, and (v) the “ESPP” represents the Primo Water Corporation Employee Share Purchase Plan, under which common shares are issued to eligible employees at a discount through payroll deductions.

For the Year Ended
(in millions of U.S. dollars)January 1, 2022January 2, 2021December 28, 2019
Stock options$3.0 $5.5 $3.3 
Performance-based RSUs7.4 7.8 5.7 
Time-based RSUs5.5 4.9 2.1 
Director share awards1.3 1.3 1.1 
Liability-classified awards— 2.9 — 
Employee Share Purchase Plan0.3 0.3 0.2 
Total 1
$17.5 $22.7 $12.4 
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1     Includes $0.6 million and $0.7 million of share-based compensation expense from our discontinued operations, which were included in net income from discontinued operations, net of income taxes on the Consolidated Statements of Operations for the years ended January 2, 2021 and December 28, 2019, respectively.
Unrecognized Share-based Compensation Expense
As of January 1, 2022, the unrecognized share-based compensation expense and weighted average years over which we expect to recognize it as compensation expense were as follows:
(in millions of U.S. dollars, except years)Unrecognized share-based compensation expense as of January 1, 2022Weighted average years expected to recognize compensation
Stock options$1.2 1.5
Performance-based RSUs8.5 2.5
Time-based RSUs8.9 1.8
Total$18.6 
Schedule of Stock Option Assumptions
The grant date fair value of each option granted during 2021, 2020 and 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

For the Year Ended
January 1, 2022January 2, 2021December 28, 2019
Risk-free interest rate1.2 %0.7 %1.8 %
Average expected life (years)6.06.06.0
Expected volatility35.9 %36.2 %29.0 %
Expected dividend yield1.4 %1.6 %1.8 %
Stock Option Activity
The following table summarizes the activity for Company stock options:

Stock Options (in thousands)Weighted average exercise priceWeighted average contractual term (years)Aggregate intrinsic value (in thousands)
Outstanding at December 29, 20185,446 $12.30 7.3$11,993.0 
Granted1,138 13.68 
Exercised(91)10.47 389.1 
Forfeited or expired— — 
Outstanding at December 28, 20196,493 $12.57 6.9$11,045.4 
Granted1,054 15.48 
Exercised(252)10.27 1,185.9 
Forfeited or expired(25)11.98 
Outstanding at January 2, 20217,270 $13.07 6.5$20,659.3 
Granted18 17.79 
Exercised(2,382)10.32 17,439.4 
Forfeited or expired(51)13.62 
Outstanding at January 1, 20224,855 $14.42 6.0$15,588.1 
Exercisable at January 1, 20223,961 $14.30 5.4$13,192.7 
Vested or expected to vest at January 1, 20224,855 $14.42 6.0$15,588.1 
Performance-based RSU and Time-Based RSU Activity
Number of Performance-based RSUs (in thousands)Weighted Average Grant-Date Fair ValueNumber of Time-based RSUs (in thousands)Weighted Average Grant-Date Fair Value
Balance at December 29, 20181,665 $13.90 427 $14.23 
Awarded285 13.69 216 13.69 
Awarded in connection with modification190 11.22 — — 
Issued(441)11.30 (239)13.38 
Forfeited(100)12.33 (7)14.89 
Balance at December 28, 20191,599 $14.36 397 $14.43 
Awarded458 15.64 542 14.85 
Awarded in connection with modification344 17.50 — — 
Issued(842)16.80 (371)13.82 
Forfeited(374)16.03 (20)14.18 
Outstanding at January 2, 20211,185 $15.27 548 $14.75 
Awarded484 17.06 665 16.50 
Awarded in connection with modification119 17.46 — — 
Issued(467)17.46 (266)14.59 
Forfeited(75)15.02 (62)14.88 
Outstanding at January 1, 20221,246 $15.65 885 $16.10 
Vested or expected to vest at January 1, 20221,524 $15.34 885 $16.10