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Stock-Based Compensation Plans | 12 Months Ended
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Aug. 27, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation Plans | Stock-Based Compensation PlansOn December 11, 2018, our shareholders approved the Winnebago Industries, Inc. 2019 Omnibus Incentive Plan ("2019 Plan") as detailed in our Proxy Statement for the 2018 Annual Meeting of Shareholders. The 2019 Plan allows us to grant or issue non-qualified stock options, incentive stock options, restricted share units, and other equity compensation to key employees and to non-employee directors. The 2019 Plan replaces the 2014 Omnibus Equity, Performance Award, and Incentive Compensation Plan (as amended, the "2014 Plan"). The number of shares of our common stock that may be awarded and issued under the 2019 Plan is 4.1 million shares, plus the shares subject to any awards outstanding under the 2014 Plan and our predecessor plan, the 2004 Incentive Compensation Plan (the “2004 Plan”), on December 11, 2018 that subsequently expire, are forfeited or canceled, or are settled for cash. Until such time, awards under the 2014 Plan and the 2004 Plan, respectively, that were outstanding on December 11, 2018 will continue to be subject to the terms of the 2014 Plan or 2004 Plan, as applicable. Shares remaining available for future awards under the 2014 Plan were not carried over into the 2019 Plan. Our outstanding options have a 10-year term. Options issued to employees generally vest over a three-year period in equal annual installments on the annual anniversary dates following the grant date. Share awards generally vest based either upon continued employment ("time-based") or upon attainment of specified goals. Outstanding share awards that are not time-based vest at the end of a three-year incentive period based upon the achievement of company performance goals ("performance-based"). Generally, time-based share awards vest in the same manner as options, except for time-based share awards to directors which vest one year from the grant date. Beginning with our annual grant of restricted stock units in October 2018, dividend equivalents are attached to restricted stock units equal to dividends payable on the same number of shares of our common stock during the applicable period. Dividend equivalents, settled in cash, accrue on restricted stock unit awards during the vesting period. No dividend equivalents are paid on any restricted stock units that are forfeited prior to the vesting date. Our Employee Stock Purchase Plan ("ESPP") permits employees to purchase Winnebago Industries, Inc. common stock at a 15% discount from the market price at the end of semi-annual purchase periods and is compensatory. In Fiscal 2022 and 2021, 42,000 shares and 24,000 shares, respectively, were purchased through the ESPP. Plan participants had accumulated $0.4 million for each period ended August 27, 2022 and August 28, 2021 to purchase our common stock pursuant to this plan. Compensation expense associated with share-based awards is recognized on a straight-line basis over the required service period and forfeitures are recorded when they occur. Total stock-based compensation expense for the past three fiscal years consisted of the following components:
| 2022 |  | 2021 |  | 2020
Share awards: |  |  |  |  |
Time-based | $ | 7,540 |  |  | $ | 5,737 |  |  | $ | 4,287 |
Performance-based | 7,412 |  |  | 7,920 |  |  | 796 |
Stock options | 1,000 |  |  | 1,019 |  |  | 990 |
Other(1) | 1,133 |  |  | 671 |  |  | 402 |
Total stock-based compensation expense | $ | 17,085 |  |  | $ | 15,347 |  |  | $ | 6,475 |
(1) Includes stock-based compensation expense related to Board of Directors stock award expense and ESPP expense. Directors may elect to defer all or part of their annual retainer into a deferred compensation plan. The plan allows them to defer into either money units or stock units. Restricted Stock Units - Time-Based The fair value of time-based restricted stock units is determined based on the closing market price of our stock on the date of grant. A summary of the status of nonvested time-based restricted stock units at August 27, 2022, and changes during Fiscal 2022, is as follows:
| Shares(1) |  | Weighted Average Fair Value
Outstanding at August 28, 2021 | 330,819 |  |  | $ | 44.35 |
Granted | 147,236 |  |  | $ | 73.64 |
Vested | (111,832) |  |  | $ | 45.53 |
Forfeited/canceled | (37,385) |  |  | $ | 55.05 |
Outstanding at August 27, 2022 | 328,838 |  |  | $ | 55.85 |
(1) Number of shares in the above table are shown in whole numbers. As of August 27, 2022, there was $8.4 million of unrecognized compensation expense related to nonvested time-based restricted stock units that are expected to be recognized over a weighted average period of 0.8 years. The total fair value of restricted stock units vested during Fiscal 2022, 2021, and 2020 was $8.0 million, $5.2 million, and $3.3 million, respectively. Restricted Stock Units - Performance-Based The fair value of performance-based restricted stock units is determined based on the closing market price of our stock on the date of grant. A summary of the status of our nonvested performance-based restricted stock units at August 27, 2022, and changes during Fiscal 2022, is as follows:
| Shares(1) |  | Weighted Average Fair Value
Outstanding at August 28, 2021 | 227,751 |  |  | $ | 45.81 |
Granted | 88,557 |  |  | $ | 68.59 |
Vested | (76,413) |  |  | $ | 40.46 |
Forfeited/canceled | (41,689) |  |  | $ | 43.93 |
Outstanding at August 27, 2022 | 198,206 |  |  | $ | 58.45 |
(1) Number of shares in the above table are shown in whole numbers. As of August 27, 2022, there was $3.9 million of unrecognized compensation expense related to nonvested performance-based restricted stock units that are expected to be recognized over a weighted average period of 0.9 years. The total fair value of performance-based restricted stock units vested during Fiscal 2022, Fiscal 2021, and Fiscal 2020 was $5.8 million, $1.4 million, and $2.4 million respectively. Stock Options A summary of stock option activity for Fiscal 2022 is as follows:
| Stock Options(1) |  | Weighted Average Exercise Price Per Share |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Outstanding at August 28, 2021 | 317,903 |  |  | $ | 40.41 |  |  |  |  |
Granted | 44,040 |  |  | $ | 75.59 |  |  |  |  |
Exercised | (30,113) |  |  | $ | 36.24 |  |  |  |  |
Forfeited/canceled | (9,723) |  |  | $ | 60.27 |  |  |  |  |
Outstanding at August 27, 2022 | 322,107 |  |  | $ | 44.75 |  |  | 6.5 |  | $ | 5,886 |
Vested and expected to vest at August 27, 2022 | 322,107 |  |  | $ | 44.75 |  |  | 6.5 |  | $ | 5,886 |
Exercisable at August 27, 2022 | 232,549 |  |  | $ | 37.77 |  |  | 5.8 |  | $ | 5,454 |
(1) Number of shares in the above table are shown in whole numbers. As of August 27, 2022, there was $1.3 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted average period of 0.8 years. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
Valuation Assumptions(1) | 2022 |  | 2021 |  | 2020
Expected dividend yield | 1.0 | % |  | 0.8 | % |  | 0.9 | %
Risk-free interest rate(2) | 1.1 | % |  | 0.3 | % |  | 1.7 | %
Expected life of stock options (in years)(3) | 5 |  | 5 |  | 5
Expected stock price volatility(4) | 48.5 | % |  | 48.6 | % |  | 41.2 | %
Weighted average fair value of options granted | $ | 30.47 |  |  | $ | 21.65 |  |  | $ | 17.18 |
(1) Forfeitures are recorded when they occur. (2) Based on U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options. (3) Estimated based on historical experience. (4) Based on historical experience over a term consistent with the expected life of the stock options.

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