Equity Plans: The Company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, performance shares units, and other stock rights to employees and directors. As of December 27, 2025, there were 0.8 million shares available for issuance of future awards under the Company’s equity-based compensation plans.

Stock options generally vest over a three-year period and are exercisable over either a seven or ten-year period commencing from the date of the grant. Restricted shares and share units granted by the Company generally vest over three years. Performance share units have three-year performance periods with vesting at the end of the performance period and earned based on the Company’s relative Total Shareholder Return ("TSR") relative to a group of peer companies. Stock options, restricted share and performance share units may have accelerated vesting upon meeting certain qualified conditions.


	Shares Under Option	Weighted Average Price		Weighted Average Remaining Contract Life (Years)	Aggregate Intrinsic Value (000’s)
Outstanding December 28, 2024	629,812	$	200.07
Granted	—	N/A

Exercised	(164,064)	173.67
Forfeited	(7,712)	236.20
Outstanding December 27, 2025	458,036	208.92		3.1	$	24,677
Exercisable December 27, 2025	416,903	206.38		2.9	23,550

The following table provides a reconciliation of non-vested restricted share and share unit awards ("RSU") for the fiscal year ended December 27, 2025.


	Shares	Weighted Average Grant-Date Fair Value
Nonvested December 28, 2024	186,013	$	229.56
Granted	175,235	186.04
Vested	(98,705)	229.94
Forfeited	(35,652)	212.78
Nonvested December 27, 2025	226,891	198.43

The following table provides a reconciliation of non-vested performance share unit awards ("PSU") for the fiscal year ended December 27, 2025.


	Shares	Weighted Average Grant-Date Fair Value
Nonvested December 28, 2024	—	N/A
Granted	75,067	319.63
Vested	—	N/A
Forfeited	(2,400)	252.93
Nonvested December 27, 2025	72,667	321.83

The total intrinsic value of options exercised during 2025, 2024, and 2023 was $13.0 million, $6.3 million, and $12.2 million, respectively. The total fair value of the vested RSU shares was $17.7 million, $16.2 million, and $19.8 million for 2025, 2024, and 2023, respectively. No PSU shares vested in 2025. The total amount of share-based liabilities paid was $1.2 million, $1.3 million, and $2.2 million for 2025, 2024, and 2023, respectively.

The Company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At December 27, 2025, the unrecognized compensation cost for options, restricted shares and performance shares was $43.6 million before tax, and will be recognized over a weighted average period of 2.0 years. Compensation cost included as a component of cost of sales, research and development and selling, general, and administrative expenses for all equity compensation plans discussed above was $28.6 million, $27.4 million, and $25.7 million for 2025, 2024,

and 2023, respectively. The total related income tax benefit recognized in the Consolidated Statements of Net (Loss) Income was $4.0 million, $4.0 million, and $3.8 million for 2025, 2024, and 2023, respectively.

The Company uses the Monte Carlo valuation model to determine the fair value of PSU shares granted. The weighted average fair value of and related assumptions for PSU shares granted are as follows:

2025

2024

2023

Weighted average fair value of options granted

$319.63

N/A

Assumptions:

Risk-free interest rate

4.01%

N/A

Expected dividend yield

—%

N/A

Expected stock price volatility

33.16%

N/A

Expected correlation

24.29%

N/A

Expected volatilities and correlation factors are based on the historical volatility of the Company’s and each peer company’s stock price. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the remaining performance period.

The fair value of RSU shares without rights to dividend equivalents is determined based on the Company's stock price on the grant date reduced by the present value of expected dividends through the vesting period. The fair value of RSU with rights to dividend equivalents is based on the Company’s stock price on the grant date.

The Company uses the Black-Scholes option valuation model to determine the fair value of stock option awards granted. The weighted average fair value of and related assumptions for options granted are as follows:


	2025	2024	2023
Weighted average fair value of options granted	N/A	$75.25	$77.40
Assumptions:
Risk-free interest rate	N/A	4.71%	3.67%
Expected dividend yield	N/A	1.13%	1.00%
Expected stock price volatility	N/A	34.9%	36.0%
Expected life of options (years)	N/A	4.4	4.4

Preferred Stock: The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board may fix by resolution.

The Company's Board of Directors authorized the repurchase of up to $300 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 ("2021 program"). On April 25, 2024, the Company's Board of Directors authorized a new three-year program to repurchase up to $300.0 million in the aggregate of shares of the Company's stock for the period May 1, 2024 to April 30, 2027 ("2024 program") to replace the expired 2021 program.