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Share-based Payment Arrangements | 3 Months Ended
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Mar. 26, 2022
Share-based Payment Arrangements |
(2) | Share-based Payment Arrangements
As of March 26, 2022, the Company has an employee equity incentive plan, the 2011 equity incentive plan (the “2011 EIP”). The Company also has a stock compensation plan for members of its Board of Directors, the Amended and Restated 2013 Directors Stock Compensation Plan (as amended and restated as of May 17, 2016, the “2013 DSCP”). 6,000,000 shares of the Company’s common stock were authorized for issuance under the 2011 EIP and 115,000 shares of the Company’s common stock were authorized for issuance under the 2013 DSCP. The 2011 EIP and 2013 DSCP are each referred to herein as a “Plan,” and, collectively, as the “Plans.” Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands):
|  | Thirteen Weeks Ended |
|  | March 26, 2022 |  |  | March 27, 2021 |
Total cost of the Plans during the period |  | $ | 1,995 |  |  | $ | 4,029 |
Amount of related income tax benefit recognized during the period |  |  | (3,360 | ) |  |  | (1,341 | )
Net cost of the Plans during the period |  | $ | (1,365 | ) |  | $ | 2,688 |
Included in income tax benefits recognized in the thirteen-week periods ended March 26, 2022 and March 27, 2021 were excess tax benefits from stock-based awards of $2,869,000 and $343,000, respectively. As of March 26, 2022, there were 56,502 shares of the Company’s common stock reserved for issuance under the 2013 DSCP and 3,230,826 shares of the Company’s common stock reserved for issuance under the 2011 EIP. Restricted Stock Units The following table summarizes information regarding the Company’s outstanding restricted stock unit (“RSU”) awards with either a performance condition or a market condition under the Plans:
|  | Number of RSUs |  |  | Weighted Average Grant Date Fair Value |
Outstanding at December 25, 2021 |  |  | 209,399 |  |  | $ | 102.90 |
Granted |  |  | 49,405 |  |  | $ | 139.78 |
Shares earned in excess of target (1) |  |  | 91,497 |  |  | $ | 92.58 |
Vested shares, including shares earned in excess of target |  |  | (174,366 | ) |  | $ | 96.14 |
Forfeited |  |  | (15,044 | ) |  | $ | 103.31 |
Outstanding at March 26, 2022 |  |  | 160,891 |  |  | $ | 115.64 |
(1) | Represents additional shares earned under each of the February 2, 2017; February 2, 2018 and February 1, 2019 RSU awards as fiscal year 2021 financial results exceeded target performance level.
During the thirteen-week period ended March 26, 2022, the Company granted RSUs with a performance condition. Outstanding RSUs at both December 25, 2021 and March 26, 2022 include RSUs with a performance condition and RSUs with a market condition, as further described below and in the Company’s 2021 Annual Report on Form 10-K. RSUs with a performance condition granted on January 28, 2022 may vest on January 31 of 2025, 2026 and 2027 based on growth in operating income and pre-tax income per diluted share from continuing operations as compared to the results from the 2021 fiscal year. The Company recognized approximately $ 1,301,000 and $3,223,000 of share-based compensation expense related to RSU awards in the thirteen-week periods ended March 26, 2022 and March 27, 2021, respectively. As of March 26, 2022, there was a maximum of $27.3 million of total unrecognized compensation cost related to RSU awards granted under the Plans with an expected average remaining life of approximately 3.9 years. With respect to RSU awards with a performance condition, the amount of future compensation expense to be recognized will be determined based on future operating results. Non-vested Restricted Stock and Deferred Stock Units The following table summarizes information regarding the Company’s outstanding shares of non-vested restricted stock and Deferred Stock Units (defined below) under the Plans:
|  | Number of Shares and Deferred Stock Units |  |  | Weighted Average Grant Date Fair Value |
Non-vested at December 25, 2021 |  |  | 56,436 |  |  | $ | 125.16 |
Granted |  |  | 17,008 |  |  | $ | 152.44 |
Vested |  |  | (21,500 | ) |  | $ | 110.16 |
Forfeited |  |  | (2,302 | ) |  | $ | 108.59 |
Non-vested at March 26, 2022 |  |  | 49,642 |  |  | $ | 141.77 |
The fair value of each share of non-vested restricted stock issued and Deferred Stock Unit granted under the Plans is based on the fair value of a share of the Company’s common stock on the date of grant. Shares of non-vested restricted stock are generally subject to vesting in three equal annual installments either on the first, second and third anniversary of the date of the grant or the third, fourth and fifth anniversary of the date of the grant, or 100% on the first or fifth anniversary of the date of the grant. For restricted stock awards granted under the 2013 DSCP plan, each recipient may elect to defer receipt of shares and instead receive restricted stock units (“Deferred Stock Units”), which represent contingent rights to receive shares of the Company’s common stock on the date of recipient separation from service from the Board of Directors, or, if earlier, upon a change in control event of the Company. Deferred Stock Units become vested 100% on the first anniversary of the date of the grant. Deferred Stock Units do not represent actual ownership in shares of the Company’s common stock and the recipient does not have voting rights or other incidents of ownership until the shares are issued. However, Deferred Stock Units do contain the right to receive dividend equivalent payments prior to settlement into shares. As of March 26, 2022, there was $5,555,000 of total unrecognized compensation cost related to non-vested shares of restricted stock and Deferred Stock Units granted under the Plans. The unrecognized compensation cost related to these non-vested shares of restricted stock and Deferred Stock Units is expected to be recognized over a weighted average period of 2.4 years. Stock Options The following table summarizes information regarding the Company’s outstanding stock options under the Plans:
|  | Number of Options |  |  | Weighted Average Exercise Price per Share |  |  | Weighted Average Remaining Contractual Term (years) |  |  | Aggregate Intrinsic Value (000s) |
Options outstanding at December 25, 2021 |  |  | 8,570 |  |  | $ | 55.42 |  |  |  |  |  |  |  |  |
Exercised |  |  | (3,500 | ) |  | $ | 54.01 |  |  |  |  |  |  |  |  |
Options outstanding at March 26, 2022 |  |  | 5,070 |  |  | $ | 56.40 |  |  |  | 0.8 |  |  | $ | 495 |
Options exercisable at March 26, 2022 |  |  | 5,070 |  |  | $ | 56.40 |  |  |  | 0.8 |  |  | $ | 495 |
The total intrinsic value of stock options exercised during the thirteen-week periods ended March 26, 2022 and March 27, 2021 was $369,000 and $521,000, respectively. As of March 26, 2022, there was no unrecognized compensation cost related to stock options granted under the Plans.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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