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Stockholders’ Equity and Stock-Based Compensation
 9 Months Ended
Sep. 25, 2021
Equity [Abstract]  
Stockholders’ Equity and Stock-Based Compensation Stockholders’ Equity and Stock-Based Compensation
Common Stock Repurchase Program
On October 26, 2020, our Board of Directors authorized a program to repurchase up to $50 million of outstanding common stock to offset potential dilution from issuances of common stock under our stock-based compensation plans. The share repurchase program will expire on October 28, 2022. During the nine months ended September 25, 2021, we repurchased and retired 620,200 shares of common stock for $24.0 million and, as of September 25, 2021, $26.0 million remained available for future repurchases.

Our policy related to repurchases of our common stock is to charge the excess of cost over par value to additional paid-in capital once the shares are retired. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

Restricted Stock Units
Restricted stock unit (“RSU”) activity under our equity incentive plan was as follows:
UnitsWeighted Average Grant Date Fair Value
RSUs at December 26, 20202,840,922 $19.80 
Awards granted1,030,085 36.09 
Awards vested(1,457,554)16.95 
Awards forfeited(38,128)23.82 
RSUs at September 25, 20212,375,325 28.55 

Performance Restricted Stock Units
We may grant Performance RSUs (“PRSUs”) to certain executives, which vest based upon us achieving certain market performance criteria.

On August 2, 2021, we granted 197,128 PRSUs to certain senior executives for a total grant date fair value of $8.6 million, which will be recognized ratably over the requisite service period. The performance criteria are based on Total Shareholder Returns ("TSR") for the period of July 1, 2021 - June 30, 2024, relative to the TSR of the companies identified as being part of the S&P semiconductor Select Industry Index (FormFactor peer companies) as of the grant date.

All 318,100 PRSUs granted in fiscal 2018 vested during the nine months ended September 25, 2021. These shares achieved TSR performance that resulted in an additional 124,600 shares issued during the nine months ended September 25, 2021 related to the 2018 PRSU grant.
There were no other PRSUs granted during the nine months ended September 25, 2021. PRSUs are included as part of the RSU activity above.

Stock Options
Stock option activity under our equity incentive plan was as follows:
Options OutstandingWeighted Average Exercise PriceWeighted Average Remaining Contractual Life in YearsAggregate Intrinsic Value
(in thousands)
Outstanding at December 26, 2020106,000 $8.35 
Options exercised(100,000)8.44 
Outstanding at September 25, 20216,000 $6.93 0.86$201 
Vested and expected to vest at September 25, 20216,000 $6.93 0.86$201 
Exercisable at September 25, 20216,000 $6.93 0.86$201 

Employee Stock Purchase Plan
Information related to activity under our Employee Stock Purchase Plan (“ESPP”) was as follows:
 Nine Months Ended
 September 25, 2021
Shares issued378,584 
Weighted average per share purchase price$25.91 
Weighted average per share discount from the fair value of our common stock on the date of issuance$(13.53)

Stock-Based Compensation
Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands):
Three Months EndedNine Months Ended
September 25,
2021		September 26,
2020		September 25,
2021		September 26,
2020
Cost of revenues$1,392 $962 $3,806 $2,800 
Research and development2,010 1,326 5,362 4,154 
Selling, general and administrative4,518 3,221 12,417 9,820 
Total stock-based compensation$7,920 $5,509 $21,585 $16,774 
 
Unrecognized Compensation Costs
At September 25, 2021, the unrecognized stock-based compensation was as follows (dollars in thousands): 
Unrecognized ExpenseAverage Expected Recognition Period in Years
Restricted stock units$43,364 2.33
Performance restricted stock units13,523 2.28
Employee stock purchase plan1,806 0.36
Total unrecognized stock-based compensation expense$58,693 2.26