v3.22.2.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Equity Incentive Plans
The following table summarizes the allocation of stock-based compensation in the accompanying Condensed Consolidated Statements of Income:
For the three months endedFor the nine months ended
September 30, 2022October 1, 2021September 30, 2022October 1, 2021
Cost of sales$292 $203 $701 $514 
Sales and marketing227 215 680 580 
Research and development215 244 705 669 
General and administrative3,555 3,324 9,293 8,091 
Total$4,289 $3,986 $11,379 $9,854 
As of January 1, 2021, $421 of stock-based compensation expense related to our executive bonus plan is included in accrued expenses on the Condensed Consolidated Balance Sheets. This amount was recognized as additional paid in capital during the nine months ended October 1, 2021 upon the issuance of the underlying restricted stock units ("RSUs").
The following table summarizes the activity for the Company's unvested RSUs for the nine months ended September 30, 2022:
Unvested RSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at December 31, 2021338 $76.30 
Granted142 $95.33 
Canceled(16)$78.24 
Vested(162)$73.11 
Unvested at September 30, 2022302 $86.88 
As of September 30, 2022, the Company had approximately $20,719 of unrecognized stock-based compensation expense related to RSUs, which will be recognized over the remaining weighted-average vesting period of approximately 1.96 years.
During the nine months ended September 30, 2022, the Company issued performance share units (“PSUs”) to certain executives that represent shares potentially issuable in the future. Issuance is based upon the Company's performance, over a 2-3 year performance period, on certain measures including return on invested capital and free cash flow. The PSUs vest only upon the achievement of the applicable performance goals for the performance period, and, depending on the actual achievement on the performance goals, the grantee may earn between 0% and 200% of the target PSUs. The Company considered it probable that the performance goals would be achieved, therefore the fair value of PSUs is calculated based on the stock price on the date of grant.
The following table summarizes the activity for the Company's unvested PSUs for the nine months ended September 30, 2022:
Unvested PSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at December 31, 202129 $141.46 
Granted37 $120.90 
Canceled(4)$126.73 
Unvested at September 30, 202262 $130.14 
The stock-based compensation expense recognized each period is dependent upon our estimate of the number of shares that will ultimately vest based on the achievement of certain performance conditions. Future stock-based compensation expense for unvested performance-based awards could reach a maximum of $8,797 assuming achievement at the maximum level. The unrecognized stock-based compensation expense is expected to be recognized over a weighted average period of 1.83 years.
For the nine months ended September 30, 2022, the Company had 153 unvested RSUs and PSUs outstanding which were excluded from the calculation of dilutive earnings per share because the effect would be anti-dilutive.
During the nine months ended September 30, 2022, 33 shares of common stock were issued due to the exercise of stock options. As of September 30, 2022, stock-based compensation expense related to stock options has been fully recognized and there are no outstanding options to purchase common stock.