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Shareholders' Equity | 6 Months Ended
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Jul. 02, 2023
Stockholders' Equity Note [Abstract] |
Shareholders' Equity | SHAREHOLDERS’ EQUITY The following tables depict the activity in the accounts which make up shareholders’ equity for the six months ended July 2, 2023 and July 3, 2022:
| SHARES |  | COMMON STOCK |  | ADDITIONAL PAID-IN CAPITAL |  | RETAINED EARNINGS |  | PENSION LIABILITY |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  | CASH FLOW HEDGE
| (in thousands)
Balance, at January 1, 2023 | 58,106 |  |  | $ | 5,811 |  |  | $ | 244,159 |  |  | $ | 278,639 |  |  | $ | (27,548) |  |  | $ | (138,775) |  |  | $ | (749) |
Net loss | — |  |  | — |  |  | — |  |  | (714) |  |  | — |  |  | — |  |  | — |
Issuances of stock related to performance shares | 79 |  |  | 8 |  |  | (8) |  |  | — |  |  | — |  |  | — |  |  | — |
Cash dividends declared, $0.01 per common share | — |  |  | — |  |  | — |  |  | (580) |  |  | — |  |  | — |  |  | — |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings | (132) |  |  | (14) |  |  | 1,850 |  |  | — |  |  | — |  |  | — |  |  | — |
Pension liability adjustment | — |  |  | — |  |  | — |  |  | — |  |  | (279) |  |  | — |  |  | — |
Foreign currency translation adjustment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,930 |  |  | — |
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 299 |
Balance, at April 2, 2023 | 58,053 |  |  | $ | 5,805 |  |  | $ | 246,001 |  |  | $ | 277,345 |  |  | $ | (27,827) |  |  | $ | (133,845) |  |  | $ | (450) |
Net income | — |  |  | — |  |  | — |  |  | 15,797 |  |  | — |  |  | — |  |  | — |
Issuances of stock related to restricted share units and performance shares | 5 |  |  | 1 |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |
Restricted stock issuances | 102 |  |  | 10 |  |  | 697 |  |  | — |  |  | — |  |  | — |  |  | — |
Unrecognized compensation expense related to restricted stock awards | — |  |  | — |  |  | (708) |  |  | — |  |  | — |  |  | — |  |  | — |
Cash dividends declared, $0.01 per common share | — |  |  | — |  |  | — |  |  | (581) |  |  | — |  |  | — |  |  | — |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings | (48) |  |  | (5) |  |  | 1,808 |  |  | — |  |  | — |  |  | — |  |  | — |
Pension liability adjustment | — |  |  | — |  |  | — |  |  | — |  |  | (800) |  |  | — |  |  | — |
Foreign currency translation adjustment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,361 |  |  | — |
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 300 |
Balance, at July 2, 2023 | 58,112 |  |  | $ | 5,811 |  |  | $ | 247,797 |  |  | $ | 292,561 |  |  | $ | (28,627) |  |  | $ | (132,484) |  |  | $ | (150) |
| SHARES |  | COMMON STOCK |  | ADDITIONAL PAID-IN CAPITAL |  | RETAINED EARNINGS |  | PENSION LIABILITY |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  | CASH FLOW HEDGE
| (in thousands)
Balance, at January 2, 2022 | 59,055 |  |  | $ | 5,905 |  |  | $ | 253,110 |  |  | $ | 261,434 |  |  | $ | (53,888) |  |  | $ | (100,441) |  |  | $ | (2,722) |
Net income | — |  |  | — |  |  | — |  |  | 13,293 |  |  | — |  |  | — |  |  | — |
Restricted stock issuances | 303 |  |  | 30 |  |  | 3,966 |  |  | — |  |  | — |  |  | — |  |  | — |
Unrecognized compensation expense related to restricted stock awards | — |  |  | — |  |  | (3,996) |  |  | — |  |  | — |  |  | — |  |  | — |
Cash dividends declared, $0.01 per common share | — |  |  | — |  |  | — |  |  | (592) |  |  | — |  |  | — |  |  | — |
Compensation expense related to share-based plans, net of shares received for tax withholdings | (30) |  |  | (2) |  |  | 1,787 |  |  | — |  |  | — |  |  | — |  |  | — |
Pension liability adjustment | — |  |  | — |  |  | — |  |  | — |  |  | 1,539 |  |  | — |  |  | — |
Foreign currency translation adjustment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (13,184) |  |  | — |
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 641 |
Balance, at April 3, 2022 | 59,328 |  |  | $ | 5,933 |  |  | $ | 254,867 |  |  | $ | 274,135 |  |  | $ | (52,349) |  |  | $ | (113,625) |  |  | $ | (2,081) |
Net income | — |  |  | — |  |  | — |  |  | 16,818 |  |  | — |  |  | — |  |  | — |
Restricted stock issuances | 198 |  |  | 20 |  |  | 2,533 |  |  | — |  |  | — |  |  | — |  |  | — |
Unrecognized compensation expense related to restricted stock awards | — |  |  | — |  |  | (2,553) |  |  | — |  |  | — |  |  | — |  |  | — |
Cash dividends declared, $0.01 per common share | — |  |  | — |  |  | — |  |  | (595) |  |  | — |  |  | — |  |  | — |
Compensation expense related to share-based plans, net of forfeitures | (14) |  |  | (1) |  |  | 2,145 |  |  | — |  |  | — |  |  | — |  |  | — |
Share repurchases | (415) |  |  | (42) |  |  | (5,540) |  |  | — |  |  | — |  |  | — |  |  | — |
Pension liability adjustment | — |  |  | — |  |  | — |  |  | — |  |  | 3,842 |  |  | — |  |  | — |
Foreign currency translation adjustment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (36,670) |  |  | — |
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 540 |
Balance, at July 3, 2022 | 59,097 |  |  | $ | 5,910 |  |  | $ | 251,452 |  |  | $ | 290,358 |  |  | $ | (48,507) |  |  | $ | (150,295) |  |  | $ | (1,541) |
Repurchase of Common Stock In the second quarter of 2022, the Company adopted a new share repurchase program in which the Company is authorized to repurchase up to $100 million of its outstanding shares of common stock. The program has no specific expiration date. No shares of common stock were repurchased during the six months ended July 2, 2023. During the first six months of 2022, the Company repurchased 415,223 shares of common stock at a weighted average price of $13.44 per share pursuant to this program. Restricted Stock Awards During the six months ended July 2, 2023, the Company granted restricted stock awards for 102,300 shares of common stock. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a one to three-year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company or upon involuntary termination without cause. For certain restricted stock awards with a graded vesting schedule, the Company has elected to recognize compensation expense on a straight-line basis over the requisite service period for the entire award. Compensation expense related to restricted stock grants was $2.4 million and $2.6 million for the six months ended July 2, 2023 and July 3, 2022, respectively. The Company has reduced its expense for any restricted stock forfeited during the period. The following table summarizes restricted stock outstanding as of July 2, 2023, as well as activity during the six months then ended:
| Restricted Shares |  | Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023 | 1,006,400 |  |  | $ | 13.91 |
Granted | 102,300 |  |  | 6.92 |
Vested | (405,100) |  |  | 14.43 |
Forfeited or canceled | (14,700) |  |  | 13.58 |
Outstanding at July 2, 2023 | 688,900 |  |  | $ | 12.57 |
As of July 2, 2023, the unrecognized total compensation cost related to unvested restricted stock was $3.8 million. That cost is expected to be recognized by the first quarter of 2025. Restricted Share Unit Awards During the six months ended July 2, 2023, the Company granted awards for 593,000 restricted share units to certain employees pursuant to the Company’s 2020 Omnibus Stock Incentive Plan. Each restricted share unit represents one share of the Company’s common stock to be issued to the award recipient once the vesting criteria have been satisfied. Awards of restricted share units have a graded vesting schedule over a three-year period from the date of grant, with one-third of the restricted share units vesting on each of the first, second and third anniversaries of the date of grant, provided the individual remains in the employment or service of the Company until such anniversaries. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company, upon involuntary termination without cause, or upon retirement provided certain eligibility criteria are met. The Company recognizes expense related to restricted share unit grants based on the grant date fair value of the units awarded, as determined by the market price of the Company’s common stock at date of grant. The expense is captured in selling, general and administrative expenses in the consolidated condensed statements of operations, and the Company has elected to recognize compensation expense on a straight-line basis over the requisite service period for the entire award for awards with a graded vesting schedule. Compensation expense related to the restricted share units was $1.0 million for the six months ended July 2, 2023. The Company reduces its expense for any restricted share units forfeited during the period. Grants of restricted share units are made primarily to executive-level personnel at the Company and, as a result, no compensation costs have been capitalized. The following table summarizes restricted share units outstanding as of July 2, 2023, as well as activity during the six months then ended:
| Restricted Share Units |  | Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023 | — |  |  | $ | — |
Granted | 593,000 |  |  | 10.36 |
Vested | (2,100) |  |  | 10.80 |
Forfeited or canceled | (9,100) |  |  | 10.80 |
Outstanding at July 2, 2023 | 581,800 |  |  | $ | 10.36 |
As of July 2, 2023, the unrecognized total compensation cost related to unvested restricted share units was $5.1 million. That cost is expected to be recognized by the end of 2026. Performance Share Awards During the six months ended July 2, 2023, the Company issued awards of performance shares to certain employees. These awards vest based on the achievement of certain performance-based goals over a performance period of one to three years, subject to (among other things) the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company’s election. The number of shares that may be issued in settlement of the performance shares to the award recipients may be greater (up to 200%) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. The Company evaluates the probability of achieving the performance-based goals as of the end of each reporting period and adjusts compensation expense based on this assessment. The following table summarizes the performance shares outstanding as of July 2, 2023, as well as the activity during the six months then ended:
| Performance Shares |  | Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023 | 923,600 |  |  | $ | 13.91 |
Granted | 467,500 |  |  | 10.79 |
Vested | (82,300) |  |  | 15.11 |
Forfeited or canceled | (190,100) |  |  | 14.84 |
Outstanding at July 2, 2023 | 1,118,700 |  |  | $ | 12.36 |
Compensation expense related to the performance shares was $1.7 million for both six-month periods ended July 2, 2023 and July 3, 2022. The Company has reduced its expense for any performance shares forfeited during the period. Unrecognized compensation expense related to these performance shares was approximately $8.1 million as of July 2, 2023. Depending on the performance of the Company, any compensation expense related to these outstanding performance shares will be recognized by the end of 2026. The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was approximately $0.5 million for the six months ended July 2, 2023.

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