Stockholders' Equity

9 Months Ended

Sep. 27, 2019

Stockholders' Equity Note [Abstract]

Stockholders’ Equity

Equity Incentive Plan

On May 17, 2019, the Company’s stockholders approved the 2019 Omnibus Equity Incentive Plan (the “2019 Plan”). Concurrently, the 2011 Omnibus Equity Incentive Plan (the “2011 Plan”) was terminated and any shares remaining available for new grants under the 2011 Plan share reserve were extinguished. The purpose of the 2019 Plan is to promote the interests of the Company and its stockholders by (i) attracting and retaining key officers, employees and directors of, and consultants to, the Company and its Subsidiaries and Affiliates; (ii) motivating such individuals by means of performance-related incentives to achieve long-range performance goals; (iii) enabling such individuals to participate in the long-term growth and financial success of the Company; (iv) encouraging ownership of stock in the Company by such individuals; and (v) linking their compensation to the long-term interests of the Company and its stockholders.

The 2019 Plan is administered by the Compensation and Human Capital Committee (the “Committee”) of the Board of Directors and allows for the issuance of stock options, stock appreciation rights (“SARs”), RSAs, restricted share units, performance awards, or other stock-based awards. Stock option exercise prices are fixed by the Committee but shall not be less

than the fair market value of a common share on the date of the grant of the option, except in the case of substitute awards. Similarly, the grant price of an SAR may not be less than the fair market value of a common share on the date of the grant. The Committee will determine the expiration date of each stock option and SAR, but in no case shall the stock option or SAR be exercisable after the expiration of ten years from the date of the grant. The 2019 Plan provides for 2,600,000 shares available for grant.

The following table reflects the activity of RSAs during the thirty-nine weeks ended September 27, 2019:



	Shares		Weighted Average Grant Date Fair Value
Unvested at December 28, 2018	526,730		$	20.60
Granted	375,383		34.43
Vested	(113,423	)	21.44
Forfeited	(55,193	)	20.46
Unvested at September 27, 2019	733,497		$	27.56

The Company granted 375,383 RSAs to its employees and directors at a weighted average grant date fair value of $34.43 during the thirty-nine weeks ended September 27, 2019. These awards are a mix of time and performance-based grants that generally vest over a one- to five-year period. The Company recognized expense totaling $908 and $940 on its RSAs during the thirteen weeks ended September 27, 2019 and September 28, 2018, respectively, and $2,797 and $2,548 during the thirty-nine weeks ended September 27, 2019 and September 28, 2018, respectively.

At September 27, 2019, the total unrecognized compensation cost for unvested RSAs was $10,784 and the weighted-average remaining period was approximately 2.5 years. Of this total, $6,778 related to RSAs with time-based vesting provisions and $4,006 related to RSAs with performance-based vesting provisions. At September 27, 2019, the weighted-average remaining period for time-based vesting and performance-based vesting RSAs were approximately 2.7 years and 2.1 years, respectively.

The following table summarizes stock option activity during the thirty-nine weeks ended September 27, 2019:



	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term (in years)
Outstanding December 28, 2018	191,808		$	20.23	$	2,129	7.2
Granted	—		—
Exercised	(31,412	)	20.23
Canceled/Forfeited	—		—
Outstanding and vested at September 27, 2019	160,396		$	20.23	$	3,134	6.5
Exercisable at September 27, 2019	160,396		$	20.23	$	3,134	6.5

The stock options fully vested during the first quarter of fiscal 2019. The Company recognized expense of $0 and $150 on stock options during the thirteen weeks ended September 27, 2019 and September 28, 2018, respectively, and $114 and $451 during the thirty-nine weeks ended September 27, 2019 and September 28, 2018, respectively.

As of September 27, 2019, there were 2,231,236 shares available for grant under the 2019 Plan. No share-based compensation expense related to the Company’s RSAs or stock options has been capitalized.