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Stock-Based Compensation (Notes) | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company recognized stock-based compensation expense of $33.4 million, $38.1 million and $28.9 million and related income tax benefits of $6.5 million, $7.5 million and $5.6 million for grants under its stock-based compensation plans in the statements of operations for fiscal years 2022, 2021 and 2020, respectively. As of December 31, 2022, the Company had 5,543,811 stock incentive units (stock options, stock appreciation rights, restricted stock, restricted stock units and common stock) available for issuance under the Stock Incentive Plan of 2016, as amended and restated ("Stock Plan"). Each stock option or stock appreciation right granted counts as 1.0 stock incentive unit. Stock options granted under the Stock Plan have an exercise price equal to the fair market value of the underlying stock on the grant date, expire no later than ten years from the grant date and generally vest over three years. All other awards granted, including Restricted Awards and Performance Awards, count as 2.6 stock incentive units for each share, restricted share or restricted stock unit granted. Restricted Awards issued under the Stock Plan are subject to certain restrictions, including a prohibition against any sale, transfer or other disposition by the officer or employee during the vesting period (except for certain transfers for estate planning purposes for certain officers), and a requirement to forfeit all or a certain portion of the award upon certain terminations of employment. These restrictions typically lapse over a three - to four- year period from the date of the award. The Company has elected to recognize expense for these stock-based incentive plans ratably over the vesting term on a straight-line basis. Certain option and restricted awards provide for accelerated vesting under various scenarios, including retirement, death and disability, and upon a change in control of the Company. Awards issued to employees that meet the specified retirement age and service requirements are vested upon the employee's retirement in accordance with plan provisions and the applicable award agreements issued under the Stock Plan. The Company issues shares to plan participants upon exercise or vesting of stock-based incentive awards from either authorized, but unissued shares or treasury shares. The Board of Directors awards an annual grant of Performance Awards to certain plan participants. The number of Performance Awards that will be earned (and eligible to vest) during the performance period will depend on the Company’s level of success in achieving two specifically identified performance targets. Any portion of the Performance Awards that are not earned by the end of the three-year measurement period will be forfeited. The final determination of the number of Performance Awards to be issued in respect to an award is determined by the Compensation Committee of the Company’s Board of Directors. Restricted Awards and Performance Awards A summary of the unvested Restricted Awards and Performance Awards is as follows:
| Restricted Awards |  | Weighted- Average Grant Date Fair Value |  | Performance Awards |  | Weighted- Average Grant Date Fair Value
Unvested at December 28, 2019 | 1,618,916 |  |  | $ | 27.36 |  |  | 1,127,102 |  |  | $ | 31.94 |
Granted | 1,416,117 |  |  | 22.59 |  |  | 455,207 |  |  | 34.00 |
Vested | (1,122,811) |  |  | 22.07 |  |  | (451,334) |  |  | 23.51 |
Forfeited | (268,205) |  |  | 29.67 |  |  | (125,653) |  |  | 35.91 |
Unvested at January 2, 2021 | 1,644,017 |  |  | $ | 26.39 |  |  | 1,005,322 |  |  | $ | 35.25 |
Granted | 654,898 |  |  | 34.64 |  |  | 630,996 |  |  | 38.02 |
Vested | (981,681) |  |  | 22.78 |  |  | (181,657) |  |  | 35.03 |
Forfeited | (109,234) |  |  | 32.75 |  |  | (690,246) |  |  | 35.71 |
Unvested at January 1, 2022 | 1,208,000 |  |  | $ | 33.62 |  |  | 764,415 |  |  | $ | 35.69 |
Granted | 980,456 |  |  | 25.86 |  |  | 437,253 |  |  | 27.40 |
Vested | (452,448) |  |  | 33.37 |  |  | (343,290) |  |  | 37.06 |
Forfeited | (219,530) |  |  | 30.05 |  |  | (83,724) |  |  | 27.31 |
Unvested at December 31, 2022 | 1,516,478 |  |  | $ | 28.95 |  |  | 774,654 |  |  | $ | 34.14 |
As of December 31, 2022, there was $19.4 million of unrecognized compensation expense related to unvested Restricted Awards, which is expected to be recognized over a weighted-average period of 1.6 years. The total fair value of Restricted Awards vested during the year ended December 31, 2022 was $10.9 million. As of January 1, 2022, there was $19.8 million of unrecognized compensation expense related to unvested Restricted Awards, which was expected to be recognized over a weighted-average period of 1.6 years. The total fair value of Restricted Awards vested during the year ended January 1, 2022 was $34.8 million. As of January 2, 2021, there was $18.5 million of unrecognized compensation expense related to unvested Restricted Awards, which was expected to be recognized over a weighted-average period of 1.5 years. The total fair value of Restricted Awards vested during the year ended January 2, 2021 was $35.0 million. As of December 31, 2022, there was $10.8 million of unrecognized compensation expense related to unvested Performance Awards, which is expected to be recognized over a weighted-average period of 1.6 years. The total fair value of Performance Awards vested during the year ended December 31, 2022 was $9.3 million. As of January 1, 2022, there was $16.1 million of unrecognized compensation expense related to unvested Performance Awards, which was expected to be recognized over a weighted-average period of 1.4 years. The total fair value of Performance Aw ards vested during the year ended January 1, 2022 was $6.2 million. As of January 2, 2021, there was $1.4 million of unrecognized compensation expense related to unvested Performance Awards, which was expected to be recognized over a weig hted-average period of 1.4 years. The total fair value of Performance Awards vested during the year ended January 2, 2021 was $28.0 million. Stock Options The Company estimated the fair value of employee stock options on the date of grant using the Black-Scholes-Merton formula. The estimated weighted-average fair value for each option granted was $8.46, $11.14 and $8.20 per share for fiscal years 2022, 2021 and 2020, respectively. A summary of the stock option transactions is as follows:
| Shares Under Option |  | Weighted-Average Exercise Price |  | Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (In millions)
Outstanding at December 28, 2019 | 4,033,107 |  |  | $ | 21.41 |  |  | 4.4 |  | $ | 49.8 |
Granted | 28,171 |  |  | 32.85 |  |  |  |  |
Exercised | (788,883) |  |  | 18.39 |  |  |  |  |
Canceled | (12,990) |  |  | 25.39 |  |  |  |  |
Outstanding at January 2, 2021 | 3,259,405 |  |  | $ | 22.22 |  |  | 3.9 |  | $ | 29.7 |
Granted | 23,610 |  |  | 34.22 |  |  |  |  |
Exercised | (776,850) |  |  | 22.11 |  |  |  |  |
Canceled | (17,353) |  |  | 33.79 |  |  |  |  |
Outstanding at January 1, 2022 | 2,488,812 |  |  | $ | 22.29 |  |  | 3.2 |  | $ | 16.7 |
Granted | 20,171 |  |  | 25.19 |  |  |  |  |
Exercised | (74,482) |  |  | 18.26 |  |  |  |  |
Canceled | (101,091) |  |  | 22.57 |  |  |  |  |
Outstanding at December 31, 2022 | 2,333,410 |  |  | $ | 22.43 |  |  | 2.4 |  | $ | — |
Unvested at December 31, 2022 | (36,909) |  |  |  |  |  |  |
Exercisable at December 31, 2022 | 2,296,501 |  |  | $ | 22.33 |  |  | 2.3 |  | $ | — |
The total pretax intrinsic value of stock options exercised during fiscal years 2022, 2021 and 2020 was $0.4 million, $11.4 million and $9.3 million, respectively. As of December 31, 2022, there was $0.1 million of unrecognized compensation expense related to stock option grants expected to be recognized over a weighted-average period of 0.9 years. As of January 1, 2022 and January 2, 2021, there was $0.2 million and $0.1 million, respectively, of unrecognized compensation expense related to stock option awards expected to be recognized over a weighted-average period of 1.3 years and 0.9 years, respectively. The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price as of each fiscal year end, which would have been received by the option holders had all option holders exercised options, where the market price o f the Company's stock was above the strike price ("in-the-money"), as of that date. There were no in-the-money options exercisable as of December 31, 2022, based on the Company’s closing stock price of $10.93 per share. As of January 1, 2022, 2,247,575 outstanding options were exercisable and in-the-money, with a weighted-average exercise price of $21.70 per share.

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