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Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation Expense
The table below summarizes the share-based compensation expense for the years ended December 31, 2022, January 1, 2022, and January 2, 2021. 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)December 31, 2022January 1, 2022January 2, 2021
Stock options$0.8 $3.0 $5.5 
Performance-based RSUs6.5 7.4 7.8 
Time-based RSUs8.4 5.5 4.9 
Director share awards1.2 1.3 1.3 
Liability-classified awards— — 2.9 
ESPP0.3 0.3 0.3 
Total 1
$17.2 $17.5 $22.7 
______________________
1     Includes $0.6 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 year ended January 2, 2021.
Unrecognized Share-based Compensation Expense
As of December 31, 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 December 31, 2022Weighted average years expected to recognize compensation
Stock options$0.2 0.9
Performance-based RSUs9.0 2.3
Time-based RSUs6.2 1.7
Total$15.4 
Schedule of Stock Option Assumptions
The grant date fair value of each option granted during 2021 and 2020 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, 2021
Risk-free interest rate1.2 %0.7 %
Average expected life (years)6.06.0
Expected volatility35.9 %36.2 %
Expected dividend yield1.4 %1.6 %
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 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 
Exercised(126)10.65 729.9 
Forfeited or expired(205)14.51 
Outstanding at December 31, 20224,524 $14.52 5.2$6,482.0 
Exercisable at December 31, 20224,239 $14.45 5.0$6,403.2 
Vested or expected to vest at December 31, 20224,524 $14.52 5.2$6,482.0 
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 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 
Balance 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 
Awarded529 15.20 413 15.10 
Awarded in connection with modification44 14.61 — — 
Issued(319)14.61 (420)15.74 
Forfeited(49)16.10 (29)16.42 
Outstanding at December 31, 20221,451 $15.65 849 $15.78 
Vested or expected to vest at December 31, 20221,679 $15.33 849 $15.78