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Common Stock and Stock-Based Compensation | 6 Months Ended
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Jul. 01, 2023
Share-Based Payment Arrangement [Abstract] |
Common Stock and Stock-Based Compensation | L. Common Stock and Stock-Based Compensation Option Activity Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Directors is summarized as follows:
|  | Shares |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term in Years |  |  |  | Aggregate Intrinsic Value (in thousands) |
Outstanding at December 31, 2022 |  |  | 204,245 |  |  | $ | 334.26 |  |  |  |  |  |  |  |
Granted |  |  | 51,278 |  |  |  | 324.78 |  |  |  |  |  |  |  |
Exercised |  |  | (43,481 | ) |  |  | 198.14 |  |  |  |  |  |  |  |
Forfeited |  |  | (5,756 | ) |  |  | 396.86 |  |  |  |  |  |  |  |
Outstanding at July 1, 2023 |  |  | 206,286 |  |  | $ | 358.85 |  |  |  | 6.25 |  |  | - |  | $ | 7,742 |
Exercisable at July 1, 2023 |  |  | 101,963 |  |  | $ | 299.46 |  |  |  | 4.75 |  |  |  | $ | 5,747 |
Vested and expected to vest at July 1, 2023 |  |  | 173,203 |  |  | $ | 350.05 |  |  |  | 5.91 |  |  |  | $ | 7,343 |
Of the total options outstanding at July 1, 2023, 48,231 shares were performance-based options for which the performance criteria had yet to be achieved. On March 1, 2023, the Company granted options to purchase an aggregate of 24,769 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value and exercise price per share of $161.52 and $323.80, respectively, of which all shares relate to performance-based stock options. On May 15, 2023, the Company granted options to purchase an aggregate of 3,944 shares of the Company’s Class A Common Stock to a member of senior management with a fair value and exercise per share of $152.15 and $308.14, respectively. On May 17, 2023, the Company granted options to purchase an aggregate of 2,085 shares of the Company’s Class A Common Stock to the Company’s non-employee Directors. All of the options vested immediately on the date of the grant. These options have a fair value and exercise price per share of $156.12 and $319.16, respectively. On May 24, 2023, the Company granted options to purchase an aggregate of 19,624 shares of the Company’s Class A Common Stock to a member of senior management with a weighted average fair value and exercise price per share of $152.88 and $330.68, respectively, of which 6,348 shares relate to performance-based stock options. On July 1, 2023, the Company granted options to purchase an aggregate 856 shares of the Company’s Class A Common Stock to the Company’s newly appointed non-employee Director. All of the options vested immediately on the date of the grant. These options have a fair value and exercise price per share of $151.91 and $308.44, respectively. Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows:
|  | 2023 |
Expected Volatility |  |  | 39.6 | %
Risk-free interest rate |  |  | 3.8 | %
Expected Dividends |  |  | 0.0 | %
Exercise factor |  |  | 2.4 |
Discount for post-vesting restrictions |  |  | 0.6 | %
Non-Vested Shares Activity The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards:
|  | Number of Shares |  |  | Weighted Average Fair Value |
Non-vested at December 31, 2022 |  |  | 91,211 |  |  | $ | 410.22 |
Granted |  |  | 61,285 |  |  |  | 303.89 |
Vested |  |  | (27,569 | ) |  |  | 341.73 |
Forfeited |  |  | (12,748 | ) |  |  | 367.63 |
Non-vested at July 1, 2023 |  |  | 112,179 |  |  | $ | 373.80 |
Of the total non-vested shares outstanding at July 1, 2023, 10,422 shares were performance-based shares for which the performance criteria had yet to be achieved. On March 1, 2023, the Company granted a combined 33,810 shares of restricted stock units to certain officers, senior managers and key employees, of which all shares vest ratably over service periods of up to four years. Additionally on March 1, 2023, employees elected to purchase a combined 10,594 shares under the Company’s investment share program. The weighted average fair value of the restricted stock units and investment shares, which are sold to employees at discount under its investment share program, was $323.80 and $200.08 per share, respectively. On May 17, 2023, the Company granted a combined 1,020 shares of restricted stock units to the Company’s non-employee Directors, of which all shares vest one year from the grant date. The fair value of the restricted stock units was $319.16 per share. On May 24, 2023, the Company granted a combined 15,122 shares of restricted stock units to a member of senior management, of which all shares vest ratably over service periods of up to four years. The fair value of the restricted stock units was $330.68 per share, of which 9,073 shares were performance-based shares. On July 1, 2023, the Company granted a combined 422 shares of restricted stock units to the Company’s newly appointed non-employee Director, of which all shares vest one year from the grant date. The fair value of the restricted stock units was $308.44 per share. Stock-Based Compensation The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying condensed consolidated statements of comprehensive operations:
|  | Thirteen weeks ended |  |  | Twenty-six weeks ended |
|  | July 1, 2023 |  |  | June 25, 2022 |  |  | July 1, 2023 |  |  | June 25, 2022 |
|  | (in thousands) |  |  | (in thousands) |
Amounts included in advertising, promotional and selling expenses |  | $ | 1,539 |  |  | $ | 1,494 |  |  | $ | 3,582 |  |  | $ | 2,721 |
Amounts included in general and administrative expenses |  |  | 2,654 |  |  |  | 3,314 |  |  |  | 4,684 |  |  |  | 5,009 |
Total stock-based compensation expense |  | $ | 4,193 |  |  | $ | 4,808 |  |  | $ | 8,266 |  |  | $ | 7,730 |
Stock Repurchases In 1998, the Company began a share repurchase program. Under this program, the Company's Board of Directors has authorized the repurchase of the Company's Class A Stock. On May 18, 2023, the Board of Directors authorized an increase in the aggregate expenditure limit for the Company’s stock repurchase program by $269 million, increasing the limit from $931.0 million to $1.2 billion. The Board of Directors did not specify a date upon which the total authorization would expire and, in the future, can further increase the authorized amount. Share repurchases under this program for the periods included herein were effected through open market transactions. During the thirteen and twenty-six weeks ended July 1, 2023, the Company repurchased and subsequently retired 77,041 and 142,070 shares of its Class A Common Stock, respectively, for an aggregate purchase price of $24.8 million and $46.7 million, respectively. As of July 1, 2023, the Company had repurchased a cumulative total of approximately 13.9 million shares of its Class A Common Stock for an aggregate purchase price of approximately $887.4 million and had approximately $312.6 million remaining on the $1.2 billion stock repurchase expenditure limit set by the Board of Directors.

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