XML 33 R18.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Stockholders' Equity | 12 Months Ended
--- | ---
Dec. 28, 2018
Stockholders Equity Note [Abstract] |
Stockholders' Equity | Note 11 — Stockholders’ Equity Immediate Vesting of All Unvested Equity Awards On February 11, 2016, a shareholder increased its beneficial ownership of the Company’s common stock to approximately 26% of all shares outstanding. This triggered the “Change in Control” provision in the Amended and Restated 2003 Omnibus Equity Incentive Plan (“Plan”). As a result, all then unvested equity awards outstanding under the Plan immediately vested. Consequently, we recorded an aggregate $6,857,000 non-cash charge to stock-based compensation in the Consolidated Statements of Operations on that date ($4,569,000 for stock options and $2,288,000 for restricted stock and restricted stock units). This charge was recorded and included in the following categories of the Consolidated Statements of Operations for the year ended December 30, 2016: $2,931,000 in general and administrative expenses, $1,527,000 in marketing and selling expenses, $1,838,000 in research and development expenses and $561,000 in manufacturing costs. Approximately $3,338,000 of the $6,857,000 of accelerated charges would have been recognized for stock-based compensation by the Company in fiscal years subsequent to 2016 had the Change in Control provision not been triggered. Note 11 — Stockholders’ Equity (Continued) Incentive Plan The Amended and Restated Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, and restricted stock units (“RSUs”). Options under the Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year period, or as determined by the Board of Directors, and expire over periods not exceeding 10 years from the date of grant. Certain option and share awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Plan). Grants of restricted stock outstanding under the Plan generally vest over periods of one to three years. Grants of RSUs outstanding under the Plan generally vest based on service, performance, or a combination of both. On June 14, 2018, stockholders approved a proposal to increase the number of shares under the Plan by 2,235,000 shares, for a total of 15,385,000 shares. As of December 28, 2018, there were 2,479,205 shares available for grant under the Plan. Stock-Based Compensation There was no net income tax benefit recognized in the Consolidated Statements of Operations for stock-based compensation expense for non-qualified stock options, as the Company fully offsets net deferred tax assets with a valuation allowance (see Note 9). The Company does not recognize deferred income taxes for incentive stock option compensation expense, and records a tax deduction only when a disqualified disposition has occurred (see Note 9). The following table represents the fair value of stock-based compensation granted during the year ended 2018 (in thousands):
|  | Fair Value |
Stock options |  | $ | 9,702 |
Restricted stock units |  |  | 849 |
Restricted stock |  |  | 335 |
Total stock-based compensation expense |  | $ | 10,886 |
The cost that has been charged against income for stock-based compensation is set forth below (in thousands):
|  | Years Ended |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Employee stock option |  | $ | 4,013 |  |  | $ | 1,731 |  |  | $ | 5,485 |
Restricted stock |  |  | 274 |  |  |  | 186 |  |  |  | 298 |
Restricted stock units |  |  | 2,120 |  |  |  | 1,226 |  |  |  | 2,717 |
Nonemployee stock options |  |  | 355 |  |  |  | 18 |  |  |  | 58 |
Total stock-based compensation expense |  | $ | 6,762 |  |  | $ | 3,161 |  |  | $ | 8,558 |
Note 11 — Stockholders’ Equity (Continued) Stock-Based Compensation (Continued) The Company recorded stock-based compensation expense in the following categories (in thousands):
|  | Years Ended |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Cost of sales |  | $ | 15 |  |  | $ | 8 |  |  | $ | 612 |
General and administrative |  |  | 2,635 |  |  |  | 1,487 |  |  |  | 3,809 |
Marketing and selling |  |  | 1,805 |  |  |  | 805 |  |  |  | 1,961 |
Research and development |  |  | 2,307 |  |  |  | 861 |  |  |  | 2,176 |
Total stock-based compensation expense, net |  |  | 6,762 |  |  |  | 3,161 |  |  |  | 8,558 |
Amounts capitalized as part of inventory |  |  | 637 |  |  |  | 372 |  |  |  | 269 |
Total stock-based compensation expense, gross |  | $ | 7,399 |  |  | $ | 3,533 |  |  | $ | 8,827 |
As of December 28, 2018, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plan were as follows (in thousands):
|  | 2018 |
Stock options |  | $ | 9,767 |
Restricted stock and restricted stock units |  |  | 2,007 |
Total unrecognized stock-based compensation cost |  | $ | 11,774 |
This cost is expected to be recognized over a weighted-average period of approximately two years. Assumptions The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted is derived from the historical exercises and post-vesting cancellations, and represents the period of time that options granted are expected to be outstanding. The Company has calculated an 11% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.
|  | Years Ended |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Expected dividend yield |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
Expected volatility |  |  | 53 | % |  |  | 57 | % |  |  | 57 | %
Risk-free interest rate |  |  | 2.71 | % |  |  | 1.96 | % |  |  | 1.34 | %
Expected term (in years) |  |  | 5.72 |  |  |  | 5.67 |  |  |  | 5.57 |
Note 11 — Stockholders’ Equity (Continued) Stock Options A summary of option activity under the Plan for the year ended December 28, 2018 is presented below:
|  | Shares (in 000’s) |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (years) |  |  | Aggregate Intrinsic Value (in 000’s) |
Outstanding at December 29, 2017 |  |  | 3,725 |  |  | $ | 8.78 |  |  |  |  |  |  |  |  |
Granted |  |  | 826 |  |  |  | 23.19 |  |  |  |  |  |  |  |  |
Exercised |  |  | (596 | ) |  |  | 8.72 |  |  |  |  |  |  |  |  |
Forfeited or expired |  |  | (35 | ) |  |  | 11.27 |  |  |  |  |  |  |  |  |
Outstanding at December 28, 2018 |  |  | 3,920 |  |  | $ | 11.80 |  |  |  | 6.80 |  |  | $ | 76,615 |
Exercisable at December 28, 2018 |  |  | 2,660 |  |  | $ | 8.53 |  |  |  | 5.79 |  |  | $ | 60,455 |
A summary of unvested options activity under the Plan for the year ended December 28, 2018 was as follows:
|  | Shares (in 000’s) |  |  | Weighted- Average Grant-Date Fair Value |
Unvested at December 29, 2017 |  |  | 1,148 |  |  | $ | 4.96 |
Granted |  |  | 826 |  |  |  | 11.95 |
Forfeited or expired |  |  | (35 | ) |  |  | 5.73 |
Vested |  |  | (679 | ) |  |  | 4.90 |
Unvested at December 28, 2018 |  |  | 1,260 |  |  | $ | 9.67 |
The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows:
|  | Years Ended |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Weighted-average grant-date fair value |  | $ | 11.95 |  |  | $ | 5.42 |  |  | $ | 3.77 |
Intrinsic value of options (in thousands) |  | $ | 13,699 |  |  | $ | 3,065 |  |  | $ | 1,737 |
Note 11 — Stockholders’ Equity (Continued) Restricted Stock A summary of restricted stock activity under the Plan for the year ended December 28, 2018 was as follows:
|  | Shares (in 000’s) |  |  | Weighted- Average Grant- Date Fair Value |
Outstanding at December 29, 2017 |  |  | 21 |  |  | $ | 9.60 |
Granted |  |  | 11 |  |  |  | 29.43 |
Vested |  |  | (21 | ) |  |  | 9.70 |
Outstanding at December 28, 2018 |  |  | 11 |  |  | $ | 29.80 |
Restricted Stock Units A summary of restricted stock units’ activity under the Plan for the year ended December 28, 2018 was as follows:
|  | Units (in 000’s) |  |  | Weighted- Average Grant- Date Fair Value |
Outstanding at December 29, 2017 |  |  | 488 |  |  | $ | 9.45 |
Granted |  |  | 49 |  |  |  | 17.22 |
Vested |  |  | (206 | ) |  |  | 9.65 |
Forfeited or expired |  |  | (9 | ) |  |  | 11.05 |
Outstanding at December 28, 2018 |  |  | 322 |  |  | $ | 10.46 |
Stock Offering On August 10, 2018, the Company closed an offering of its common stock. As part of this transaction, the Company issued 1,999,850 shares of its common stock at a price of $36.309 per share. Net proceeds, after deducting expenses, received from this offering were $72,150,000.

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

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration