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EQUITY-BASED COMPENSATION | 12 Months Ended
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Dec. 28, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION
A summary of equity-based compensation expense recognized during fiscal 2016, 2015 and 2014 is as follows:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Unit appreciation rights | $ | — |  |  | $ | 11,762 |  |  | $ | — |
Restricted Class B units | — |  |  | 605 |  |  | 165 |
Stock options | 4,262 |  |  | 4,314 |  |  | — |
Performance stock units | 1,092 |  |  | — |  |  | — |
Equity-based compensation expense | $ | 5,354 |  |  | $ | 16,681 |  |  | $ | 165 |
Total income tax benefit recognized related to equity-based compensation | $ | 168 |  |  | $ | 482 |  |  | $ | 4 |
Amounts are included in general and administrative expense and labor and related expenses on the Consolidated Statements of Income (Loss). We capitalized $139 of equity-based compensation in fiscal 2016. No amounts were capitalized in fiscal 2015 and 2014. Unit Appreciation Rights Prior to the IPO, we maintained a Unit Appreciation Rights Plan (the "UAR Plan"), effective in fiscal year 2012, and as amended, whereby we had the authority to grant up to 31,303 unit appreciation rights ("UARs") to employees. The UARs granted were subject to continued employment and were only exercisable upon a qualifying transaction. Our IPO constituted a qualifying transaction under the terms of the UAR Plan, and as a result 339,306 shares of Class A common stock were issued upon the settlement of the 22,554 outstanding UARs, net of employee withholding taxes. We recognized compensation expense of $11,762 during fiscal 2015 upon settlement of the outstanding UARs. There were no UARs outstanding as of December 28, 2016 or December 30, 2015. No compensation expense was recognized during fiscal 2016 and 2014. Restricted Class B Units Prior to the IPO, we granted restricted Class B units to certain of our executive officers. These awards were to vest in equal installments over periods ranging from three to five years. If not already fully vested, these units would fully vest (i) upon the occurrence of a change in control event or (ii) upon the occurrence of an initial public offering. The IPO constituted a transaction under the terms of the restricted Class B unit award agreements that resulted in the accelerated vesting of all then-outstanding awards, and we recognized $605 of equity-based compensation expense upon the vesting of these awards during fiscal 2015. There were no restricted Class B units outstanding as of December 28, 2016 or December 30, 2015. No compensation expense was recorded during fiscal 2016 and $165 was recorded during fiscal 2014. Stock Options In January 2015, we adopted the 2015 Incentive Award Plan (the "2015 Plan") under which we may grant up to 5,865,522 stock options and other equity-based awards to employees, directors and officers. The stock options granted generally vest equally over periods ranging from one to five years. We do not use cash to settle any of our equity-based awards, and we issue new shares of Class A common stock upon the exercise of stock options. The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:
| 2016 |  |  | 2015 |
Expected term (years)(1) | 5.5 |  |  | 7.5 |
Expected volatility(2) | 50.7 | % |  | 35.1 | %
Risk-free interest rate(3) | 1.5 | % |  | 1.6 | %
Dividend yield(4) | — | % |  | — | %
(1) | Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2) | Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3) | The risk-free rate rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4) | We have assumed a dividend yield of zero as we have no plans to declare dividends in the foreseeable future.
A summary of stock option activity for fiscal years 2015 and 2016 is as follows:
|  | Stock Options |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |  |  | Weighted Average Remaining Contractual Life (Years)
Outstanding as of December 31, 2014 | — |  |  | $ | — |  |  |  |  |
| Granted | 2,622,281 |  |  | 21.00 |  |  |  |  |
| Exercised | — |  |  | — |  |  |  |  |
| Forfeited | (47,300 | ) |  | (21.00 | ) |  |  |  |
| Expired | — |  |  | — |  |  |  |  |
Outstanding as of December 30, 2015 | 2,574,981 |  |  | $ | 21.00 |  |  |  |  |
| Granted | 16,931 |  |  | 34.74 |  |  |  |  |
| Exercised | (160,230 | ) |  | 21.00 |  |  |  |  |
| Forfeited | (66,960 | ) |  | (21.00 | ) |  |  |  |
| Expired | — |  |  | — |  |  |  |  |
Outstanding as of December 28, 2016 | 2,364,722 |  |  | $ | 21.10 |  |  | $ | 37,201 |  |  | 8.1
Options vested and exercisable as of December 28, 2016 | 400,471 |  |  | $ | 21.00 |  |  | $ | 6,339 |  |  | 8.1
Options expected to vest as of December 28, 2016 | 1,847,242 |  |  | $ | 21.13 |  |  | $ | 29,009 |  |  | 8.1
No stock options were granted in fiscal 2014. As of December 28, 2016, total unrecognized compensation expense related to unvested stock options, including an estimate for pre-vesting forfeitures, was $12,621, which is expected to be recognized over a weighted-average period of 3.1 years. C ash received from stock option exercises was $3,194 for fiscal 2016. A summary of unvested stock option activity for fiscal 2015 and 2016 is as follows:
|  | Stock Options |  |  | Weighted Average Grant-Date Fair Value |
Unvested as of December 31, 2014 | — |  |  | $ | — |
| Vested | — |  |  | — |
| Granted | 2,622,281 |  |  | 8.53 |
| Forfeited | (47,300 | ) |  | 8.59 |
Unvested as of December 30, 2015 | 2,574,981 |  |  | $ | 8.53 |
| Vested | (562,296 | ) |  | 8.32 |
| Granted | 16,931 |  |  | 16.32 |
| Forfeited | (65,365 | ) |  | 8.59 |
Unvested as of December 28, 2016 | 1,964,251 |  |  | $ | 8.66 |
The following table summarizes information about stock options outstanding and exercisable as December 28, 2016:
|  | Options Outstanding |  |  | Options Exercisable |
|  | Number Outstanding at December 28, 2016 |  |  | Weighted Average Remaining Contractual Life (Years) |  | Weighted Average Exercise Price |  |  | Number Exercisable at December 28, 2016 |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price |
Exercise Price |  |  |  |  |  |
$21.00 |  | 2,347,791 |  |  | 8.1 |  | $ | 21.00 |  |  | 400,471 |  |  | 8.1 |  |  | $ | 21.00 |
$34.62 |  | 15,823 |  |  | 9.4 |  | $ | 34.62 |  |  | — |  |  | — |  |  | $ | — |
$36.41 |  | 1,108 |  |  | 9.9 |  | $ | 36.41 |  |  | — |  |  | — |  |  | $ | — |
Performance Stock Units Under the 2015 Plan, we may grant performance stock units and other types of performance-based equity awards that vest based on the outcome of certain performance criteria that are established and approved by the Compensation Committee of the Board of Directors. The actual number of equity awards earned is based on the level of performance achieved over a predetermined performance period, relative to established financial goals, none of which are considered market conditions. For performance stock units granted during fiscal 2016, the amount of awards that can be earned range from 0% to 125% of the number of performance stock units granted, based on the achievement of approved financial goals over a one-year performance period. In addition to the performance conditions, performance stock units are also subject to a requisite service period and the awards will vest ratably over three years. The fair value of performance stock units is determined based on the closing market price of our Class A common stock on the date of grant. Compensation expense related to the performance stock units is recognized using a graded-vesting attribution method over the vesting period based on the most probable outcome of the performance conditions. A summary of performance stock unit activity for fiscal 2016 is as follows:
|  | Performance Stock Units |  |  | Weighted Average Grant Date Fair Value |
Outstanding at beginning of period | — |  |  | $ | — |
| Granted | 63,600 |  |  | 38.41 |
| Vested | — |  |  | — |
| Forfeited | (2,000 | ) |  | 38.43 |
| Expired | — |  |  | — |
Outstanding at end of period | 61,600 |  |  | $ | 38.41 |
No performance stock units were granted in fiscal 2015 and 2014. As of December 28, 2016, there were 61,600 performance stock units outstanding, of which none were vested. As of December 28, 2016, total unrecognized compensation expense related to unvested performance stock units, including an estimate for pre-vesting forfeitures, was $1,591, which is expected to be recognized over a weighted-average period of 2.3 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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