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Stock-based Compensation
 12 Months Ended
Apr. 30, 2022
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
The consolidated statements of operations and other comprehensive income (loss) for fiscal 2022, 2021 and 2020 include pre-tax (after-tax) stock-based compensation expense of $23,805 ($18,686), $21,223 ($16,387) and $22,935 ($17,789), respectively. Pre-tax expense is included in operating expenses within the consolidated statements of operations and other comprehensive income (loss).
As of April 30, 2022, the total unrecognized compensation cost related to non-vested awards was $22,718, and it is expected to be recognized over a weighted average period of approximately 1.3 years.
2015 Omnibus Incentive Plan
In September 2015, our shareholders approved the 2015 Omnibus Incentive Plan ("Incentive Plan"), which was most recently amended and restated in September 2021. The aggregate number of shares of common stock that may be issued is 19,500. The Incentive Plan authorizes various award types to be issued under the plan, including stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance awards, non-employee director awards, cash-based awards and other stock-based awards. We issue new shares for stock option exercises, restricted stock award grants and also for vesting of restricted stock units and performance stock units. Awards that expire or are canceled without delivery of shares generally become available for reissuance under the plan.
At April 30, 2022, there were 10,515 shares available for awards under the Incentive Plan.
As a result of the approval of the Incentive Plan, awards are no longer granted under any prior equity incentive plan, but all outstanding awards previously granted under such prior plans will remain outstanding and subject to the terms of such prior plans. At April 30, 2022, there were 307 shares outstanding under prior plans.
Inducement Awards
On June 29, 2018, we issued a combination of non-statutory stock options and restricted stock units outside our Incentive Plan to our Chief Financial Officer. The stock option covers 99 shares of our common stock, has an exercise price of $22.67 per share, and has a 10-year term. Such award vested to the extent of one-third of the award on the first anniversary of the date of grant, one-third of the award on the second anniversary of the date of grant, and the remaining one-third of the award on the third anniversary of the date of grant. The restricted stock
unit award covers 31 shares of our common stock. Such award vested to the extent of 50% of the award on the first anniversary of the date of grant and the remaining 50% of the award on the second anniversary of the date of grant.
Stock Option Awards
Stock options granted to employees expire no later than ten years after the date of grant. Awards typically vest over three or five years.
The fair value of stock options granted was estimated as of the grant date using a Black-Scholes option-pricing model with the following assumptions:
Fiscal Year Ended
April 30,
2022		April 24,
2021		April 25,
2020
Expected dividend yield3.4 %4.4 %4.7 %
Expected stock price volatility38.1 %34.6 %26.8 %
Risk-free interest rate1.1 %0.4 %1.8 %
Expected life (years)6.06.06.0
Weighted average grant date fair value per share$7.97 $4.60 $3.37 
The following is a summary of stock option activity:
Number
of
Options		Weighted-
Average
Exercise
Price		Aggregate Intrinsic
Value
Balance as of April 24, 20212,697 $28.31 
Granted290 30.74 
Exercised(175)22.76 
Canceled(75)43.01 
Balance as of April 30, 20222,737 $28.52 $15,615 
Vested or expected to vest as of April 30, 20222,727 $28.53 $15,557 
Exercisable as of April 30, 20221,707 $30.39 $9,858 
The weighted average remaining contractual lives of options outstanding and options exercisable as of April 30, 2022 were 6.8 and 6.0 years, respectively.
Related to stock options exercised, the intrinsic value, cash received and tax benefits realized were $1,552, $3,975 and $238, respectively, in fiscal 2022; and $953, $3,399 and $129, respectively, in fiscal 2021. No stock options were exercised in fiscal 2020.
Restricted Stock
Restricted stock awards and restricted stock units granted to employees generally vest over a three or five year period. Restricted stock awards are also granted to non-employee directors annually and vest over one year. The grant date fair value of restricted stock awards and restricted stock units is based on the closing stock price on the day of the grant. The total fair value of restricted stock awards and restricted stock units that vested in fiscal 2022, 2021 and 2020 was $19,970, $11,672 and $8,788, respectively.
The following is a summary of restricted stock award activity:
Restricted Stock Awards
SharesWeighted-
Average
Grant Date
Fair Value
Outstanding at April 24, 202154 $30.63 
Granted32 31.86 
Vested(53)30.45 
Forfeitures(6)33.29 
Outstanding at April 30, 202227 $31.86 
The following is a summary of restricted stock unit activity:
Restricted Stock Units
SharesWeighted-
Average
Grant Date
Fair Value
Outstanding at April 24, 20211,241 $25.65 
Granted417 30.79 
Vested(586)26.42 
Forfeitures(70)26.92 
Outstanding at April 30, 20221,002 $27.24 
Performance Unit Awards
In fiscal 2022, 2021 and 2020, we granted performance unit awards to certain executives which are earned at the end of a three-year period if certain operating goals are met. The number of shares to be received at vesting related to the fiscal 2022 and 2021 awards will be determined by performance measured over three fiscal year periods and ultimately modified by Patterson's total shareholder return ("TSR") relative to the performance of companies in the S&P Midcap 400 Index measured over a three-year period. We estimate the grant date fair value of the TSR awards using the Monte Carlo valuation model. We recognize expense over the requisite service period based on the outcome that is probable for these awards. The total fair value of performance unit awards that vested in fiscal 2021 was $4,227. No performance unit awards vested in fiscal 2022 and 2020.
The following is a summary of performance unit award activity at target:
Performance Unit Awards
SharesWeighted-
Average
Grant Date
Fair Value
Outstanding at April 24, 2021288 $22.94 
Granted150 29.67 
Vested— — 
Forfeitures and cancellations— — 
Outstanding at April 30, 2022438 $26.14 
Employee Stock Purchase Plan ("ESPP")
We sponsor an ESPP under which a total of 9,000 shares have been reserved for purchase by employees. Eligible employees may purchase shares at 85% of the lower of the fair market value of our common stock on the beginning of the annual offering period, or on the end of each quarterly purchase period, which occur on March 31, June 30, September 30 and December 31. The offering periods begin on January 1 of each calendar year and end on December 31 of each calendar year. At April 30, 2022, there were 1,387 shares available for purchase under the ESPP.
We estimate the grant date fair value of shares purchased under our ESPP using the Black-Scholes option pricing valuation model with the following assumptions:
Fiscal Year Ended
April 30,
2022		April 24,
2021		April 25,
2020
Expected dividend yield3.6 %3.6 %5.1 %
Expected stock price volatility28.6 %51.7 %34.3 %
Risk-free interest rate0.3 %0.1 %1.6 %
Expected life (years)0.60.60.6
Weighted average grant date fair value per share$6.79 $8.77 $4.98