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Stockholders' Equity | 12 Months Ended
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Jan. 01, 2021
Stockholders Equity Note [Abstract] |
Stockholders' Equity | Note 12 — Stockholders’ Equity 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, RSUs and PSUs. 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 and PSUs outstanding under the Plan generally vest based on service, performance, or a combination of both. On July 30, 2020, stockholders approved a proposal to increase the number of shares under the Plan by 2,650,000 shares, for a total of 18,035,000 shares. As of January 1, 2021, there were 3,380,231 shares available for grant under the Plan. Stock-Based Compensation The Company recognized a net income tax benefit in the Consolidated Statements of Income for stock-based compensation expense for incentive stock options and non-qualified stock options, as a result of disqualifying dispositions and exercises, respectively. 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 10). The following table represents the fair value of stock-based compensation granted during the year ended 2020 (in thousands):
|  | Fair Value |
Stock options |  | $ | 8,592 |
Restricted stock units |  |  | 4,260 |
Performance stock units |  |  | 790 |
Restricted stock |  |  | 644 |
Total stock-based compensation expense |  | $ | 14,286 |
The Company recorded stock-based compensation expense by award as follows (in thousands):
|  | Years Ended |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Employee stock option |  | $ | 9,577 |  |  | $ | 8,144 |  |  | $ | 4,013 |
Restricted stock |  |  | 428 |  |  |  | 320 |  |  |  | 274 |
Restricted stock units |  |  | 1,732 |  |  |  | 1,905 |  |  |  | 2,120 |
Performance stock units |  |  | 147 |  |  |  | — |  |  |  | — |
Nonemployee stock options |  |  | 262 |  |  |  | 178 |  |  |  | 355 |
Total stock-based compensation expense |  | $ | 12,146 |  |  | $ | 10,547 |  |  | $ | 6,762 |
Note 12 — Stockholders’ Equity (Continued) Stock-Based Compensation (Continued) The Company recorded stock-based compensation expense in the following categories (in thousands):
|  | Years Ended |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Cost of sales |  | $ | 112 |  |  | $ | 52 |  |  | $ | 15 |
General and administrative |  |  | 4,925 |  |  |  | 4,010 |  |  |  | 2,635 |
Selling and marketing |  |  | 3,471 |  |  |  | 3,318 |  |  |  | 1,805 |
Research and development |  |  | 3,638 |  |  |  | 3,167 |  |  |  | 2,307 |
Total stock-based compensation expense, net |  |  | 12,146 |  |  |  | 10,547 |  |  |  | 6,762 |
Amounts capitalized as part of inventory |  |  | 1,129 |  |  |  | 1,017 |  |  |  | 637 |
Total stock-based compensation expense, gross |  | $ | 13,275 |  |  | $ | 11,564 |  |  | $ | 7,399 |
As of January 1, 2021, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plan were as follows (in thousands):
|  | 2020 |
Stock options |  | $ | 12,545 |
Restricted stock, restricted stock units and performance stock units |  |  | 3,917 |
Total unrecognized stock-based compensation cost |  | $ | 16,462 |
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 6% 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 |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Expected dividend yield |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
Expected volatility |  |  | 53 | % |  |  | 53 | % |  |  | 53 | %
Risk-free interest rate |  |  | 0.53 | % |  |  | 2.40 | % |  |  | 2.71 | %
Expected term (in years) |  |  | 5.72 |  |  |  | 5.66 |  |  |  | 5.72 |
Note 12 — Stockholders’ Equity (Continued) Stock Options A summary of option activity under the Plan for the year ended January 1, 2021 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 January 3, 2020 |  |  | 4,326 |  |  | $ | 16.46 |  |  |  |  |  |  |  |  |
Granted |  |  | 621 |  |  |  | 28.78 |  |  |  |  |  |  |  |  |
Exercised |  |  | (1,507 | ) |  |  | 13.70 |  |  |  |  |  |  |  |  |
Forfeited or expired |  |  | (22 | ) |  |  | 32.35 |  |  |  |  |  |  |  |  |
Outstanding at January 1, 2021 |  |  | 3,418 |  |  | $ | 19.80 |  |  |  | 6.60 |  |  | $ | 203,087 |
Exercisable at January 1, 2021 |  |  | 2,372 |  |  | $ | 15.05 |  |  |  | 5.66 |  |  | $ | 152,218 |
A summary of unvested options activity under the Plan for the year ended January 1, 2021 was as follows:
|  | Shares (in 000’s) |  |  | Weighted-Average Grant-Date Fair Value |
Unvested at January 3, 2020 |  |  | 1,279 |  |  | $ | 15.44 |
Granted |  |  | 621 |  |  |  | 13.85 |
Forfeited or expired |  |  | (22 | ) |  |  | 16.52 |
Vested |  |  | (832 | ) |  |  | 14.66 |
Unvested at January 1, 2021 |  |  | 1,046 |  |  | $ | 15.09 |
The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows:
|  | Years Ended |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Weighted-average grant-date fair value |  | $ | 13.85 |  |  | $ | 17.95 |  |  | $ | 11.95 |
Intrinsic value of options (in thousands) |  | $ | 59,771 |  |  | $ | 9,955 |  |  | $ | 13,699 |
Note 12 — Stockholders’ Equity (Continued) Restricted Stock, Restricted Stock Units and Performance Stock Units A summary of restricted stock, RSU and PSU activity under the Plan for the year ended January 1, 2021was as follows:
|  | Restricted Stock |  |  | Restricted Stock Units |  |  | Performance Stock Units |
|  | Units (in 000’s) |  |  | Weighted- Average Grant- Date Fair Value |  |  | Units (in 000’s) |  |  | Weighted- Average Grant- Date Fair Value |  |  | Units (in 000’s) |  |  | Weighted- Average Grant- Date Fair Value |
Outstanding at January 3, 2020 |  |  | 11 |  |  | $ | 29.39 |  |  |  | 104 |  |  | $ | 10.79 |  |  |  | — |  |  | $ | — |
Granted |  |  | 11 |  |  |  | 58.25 |  |  |  | 127 |  |  |  | 33.57 |  |  |  | 15 |  |  |  | 51.42 |
Vested |  |  | (11 | ) |  |  | 29.82 |  |  |  | (108 | ) |  |  | 12.52 |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | 13.80 |  |  |  | — |  |  |  | — |
Outstanding at January 1, 2021 |  |  | 11 |  |  | $ | 59.06 |  |  |  | 122 |  |  | $ | 32.97 |  |  |  | 15 |  |  | $ | 51.42 |
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.

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: 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
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