XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Stock-Based Compensation | 12 Months Ended
--- | ---
Jan. 01, 2022
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Under the Corporation’s 2021 Stock-Based Compensation Plan (the "2021 Plan"), effective May 24, 2021, the Corporation may award options to purchase shares of the Corporation’s common stock and grant other stock awards to executives, managers, and key personnel. Upon shareholder approval of the 2021 Plan in May 2021, no future awards were granted under the Corporation’s 2017 Stock-Based Compensation Plan (the "2017 Plan" and together with the 2021 Plan, the "Plans"), but all outstanding awards previously granted under the 2017 Plan shall remain outstanding in accordance with their terms. As of January 1, 2022, there were approximately 3.0 million shares available for future issuance under the Plans. The Plans are administered by the Human Resources and Compensation Committee of the Board. Forms of awards issued under the Plans include stock options, restricted stock units based on a service condition ("RSUs"), and restricted stock units based on both financial performance and service conditions ("PSUs"). The Corporation uses common shares held in treasury to satisfy share option exercises and distributions of shares related to vested RSUs and PSUs. RSUs awarded prior to 2020 generally cliff-vest after three years, while RSUs awarded starting in 2020 generally vest ratably over three years. PSUs were awarded starting in 2020, and generally vest at the end of a three year period, subject to a performance metric based on the Corporation's cumulative profitability during the period. PSUs and RSUs awarded starting in 2020 generally accrue cash dividends during the vesting periods, with payment made when earned shares are distributed to participants. Stock options awarded to members must be at exercise prices equal to or exceeding the fair market value of the Corporation’s common stock on the date of grant. Stock options are generally subject to four-year cliff vesting and must be exercised within 10 years from the date of grant. The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employees' requisite service periods, adjusted for an estimated forfeiture rate for those shares not expected to vest. Additionally, expense related to PSUs is periodically adjusted for the probable number of shares to be awarded at the end of the three year performance period. Compensation cost charged against operations for the Plans and the 2017 MSPP described in "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity" in the Notes to Consolidated Financial Statements was as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Compensation cost | $ | 12,881 |  |  | $ | 7,827 |  |  | $ | 6,830 |
The total income tax benefit recognized in the Consolidated Statements of Comprehensive Income for share-based compensation arrangements was as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Income tax benefit | $ | 3,076 |  |  | $ | 1,925 |  |  | $ | 1,545 |
RSUs The following table summarizes the changes in RSUs:
| Number of Shares |  | Weighted-Average Grant Date Fair Value
Nonvested as of December 29, 2018 | 45,724 |  |  | $ | 36.49 |
Granted | 10,000 |  |  | 36.05 |
Vested | (24,823) |  |  | 33.30 |
Forfeited | (9,289) |  |  | 40.22 |
Nonvested as of December 28, 2019 | 21,612 |  |  | $ | 38.41 |
Granted | 173,766 |  |  | 36.78 |
Vested | (6,968) |  |  | 40.77 |
Forfeited | (5,930) |  |  | 37.50 |
Nonvested as of January 2, 2021 | 182,480 |  |  | $ | 36.80 |
Granted | 430,109 |  |  | 37.02 |
Vested | (62,989) |  |  | 37.09 |
Forfeited | (4,541) |  |  | 32.90 |
Nonvested as of January 1, 2022 | 545,059 |  |  | $ | 36.98 |
As of January 1, 2022, there was $6.7 million of unrecognized compensation cost related to RSUs, which the Corporation expects to recognize over a weighted-average period of 1.0 year. The total value of shares vested was as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Value of shares vested | $ | 2,336 |  |  | $ | 284 |  |  | $ | 827 |
PSUs The following table summarizes the changes in PSUs:
| Number of Shares |  | Weighted-Average Grant Date Fair Value
Nonvested as of December 28, 2019 | — |  |  | $ | — |
Granted | 157,266 |  |  | 37.64 |
Forfeited | (9,440) |  |  | 38.08 |
Nonvested as of January 2, 2021 | 147,826 |  |  | $ | 37.62 |
Granted | 163,650 |  |  | 36.99 |
Forfeited | (2,036) |  |  | 37.61 |
Nonvested as of January 1, 2022 | 309,440 |  |  | $ | 37.29 |
As of January 1, 2022, there was $4.9 million of unrecognized compensation cost related to PSUs, which the Corporation expects to recognize over a weighted-average period of 1.0 year. Stock Options Stock-based compensation expense related to stock options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions by grant year:
|  |  |  |  | 2019
Expected term |  |  |  |  | 5 years
Expected volatility (weighted-average) |  |  |  |  | 33.86 | %
Expected dividend yield (weighted-average) |  |  |  |  | 2.98 | %
Risk-free interest rate (weighted-average) |  |  |  |  | 2.52 | %
There were no stock options granted in 2021 or 2020. Expected volatilities were based on historical volatility as the Corporation does not expect that future volatility over the expected term of the options is likely to differ from the past. The Corporation used a calculation method based on the historical daily frequency for a period of time equal to the expected term. The Corporation used the current dividend yield as there are no plans to substantially increase or decrease its dividends. The Corporation used historical exercise experience to determine the expected term. The risk-free interest rate was selected based on yields from treasury securities as published by the Federal Reserve equal to the expected term of the options. The amount of stock-based compensation expense recognized during a period is also based on the portion of the stock options that are ultimately expected to vest. The Corporation estimates pre-vesting forfeitures at the time of grant by analyzing historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The following table summarizes the changes in outstanding stock options:
| Number of Shares |  | Weighted Average Exercise Price
Outstanding as of December 29, 2018 | 3,627,005 |  |  | $ | 36.89 |
Granted | 637,763 |  |  | 39.64 |
Exercised | (921,900) |  |  | 30.29 |
Forfeited or Expired | (120,143) |  |  | 39.29 |
Outstanding as of December 28, 2019 | 3,222,725 |  |  | $ | 39.24 |
Exercised | (188,734) |  |  | 29.24 |
Forfeited or Expired | (27,813) |  |  | 42.38 |
Outstanding as of January 2, 2021 | 3,006,178 |  |  | $ | 39.84 |
Exercised | (814,639) |  |  | 35.04 |
Forfeited or Expired | (832) |  |  | 39.77 |
Outstanding as of January 1, 2022 | 2,190,707 |  |  | $ | 41.62 |
A summary of the Corporation’s non-vested stock options and changes during the year are presented below:
| Number of Shares |  | Weighted Average Grant-Date Fair Value
Non-vested as of January 2, 2021 | 1,195,317 |  |  | $ | 10.62 |
Vested | (238,046) |  |  | 13.97 |
Forfeited | (832) |  |  | 9.88 |
Non-vested as of January 1, 2022 | 956,439 |  |  | $ | 9.79 |
As of January 1, 2022, there was $0.5 million of unrecognized compensation cost related to stock option awards, which the Corporation expects to recognize over a weighted-average period of 0.6 years. Information about stock options expected to vest or currently exercisable is as follows:
| January 1, 2022
| Number of Shares |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Exercisable Period (years) |  | Aggregate Intrinsic Value ($000s)
Expected to vest | 932,399 |  |  | $ | 39.18 |  |  | 6.7 |  | $ | 2,676 |
Exercisable | 1,234,268 |  |  | $ | 43.50 |  |  | 4.2 |  | $ | 3,510 |
Other information for the last three years is as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Total fair value of options vested | $ | 3,326 |  |  | $ | 3,608 |  |  | $ | 11,470 |
Total intrinsic value of options exercised | $ | 5,433 |  |  | $ | 1,527 |  |  | $ | 5,981 |
Cash received from exercise of stock options | $ | 28,549 |  |  | $ | 5,519 |  |  | $ | 27,926 |
Tax benefit realized from exercise of stock options | $ | 1,000 |  |  | $ | 376 |  |  | $ | 1,353 |
Weighted-average grant-date fair value of options granted | $ | — |  |  | $ | — |  |  | $ | 9.84 |
Deferred Compensation The following table details deferred compensation, which is a combination of cash and stock, and the affected line item in the Consolidated Balance Sheets where deferred compensation is presented (in thousands):
| January 1, 2022 |  | January 2, 2021
Current maturities of other long-term obligations | $ | 1,496 |  |  | $ | 1,490 |
Other long-term liabilities | 9,033 |  |  | 8,649 |
Total deferred compensation | $ | 10,529 |  |  | $ | 10,139 |
Total fair-market value of deferred compensation | $ | 8,079 |  |  | $ | 7,207 |

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration