XML 41 R23.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure Of Compensation Related Costs Share Based Payments [Text Block] | 16. Stock-Based Compensation Stock Incentive Plan On May 28, 2013, the Company’s shareholders approved the 2013 Stock Incentive Plan (the “2013 Plan”), which permits the grant of a variety of stock-based awards, including stock options, restricted stock units (“RSUs”) and performance share units (“PSUs”) to selected employees and directors of the Company. As at December 30, 2017, 3,674,298 securities remained available for issuance under the 2013 Plan. For the years ended December 30, 2017, December 31, 2016 and January 2, 2016, total stock-based compensation expense amounted to $5.7 million, $4.1 million and $4.4 million, respectively. Stock Options Stock o ptions granted to selected employees during the year ended December 30, 2017 and December 31, 2016, vest ratably on each of the first t hrough third a nniversaries of the grant date and expire on the tenth anniversary of the grant date. Stock o ptions granted during the year ended January 2, 2016, vest ratably on each of the first through fifth anniversaries of the grant date and expire on t he tenth anniversary of the grant date. Stock options granted b y the Company contain an exercise price that is equal to the closing market price of the shares on the day prior to the grant date. Any consideration paid by employees or directors on exercise of stock options or purchase of stock is credited to capital s tock. The following table summarizes stock option activity for the year ended December 30, 2017:
|  |  |  |  |  |  | Weighted- |  |
|  |  |  |  |  |  | average |  |
|  |  |  |  | Weighted- | remaining |  |
|  |  |  |  | average | contractual | Aggregate
|  |  |  | Options | exercise price | term (years) | intrinsic value
Outstanding, beginning of year | 4,579,850 | $ | 6.47 |  |  |
Granted | 1,120,406 |  | 9.29 |  |  |
Exercised | (827,272) |  | 5.34 |  |  |
Forfeited | (1,260,767) |  | 6.74 |  |  |
Expired | (305,489) |  | 7.56 |  |  |
Outstanding at end of year | 3,306,728 | $ | 7.51 | 6.92 | $ | 4,145
Exercisable, end of year | 1,157,507 | $ | 7.16 | 5.12 | $ | 1,615
The following table summarizes non-vested stock option activity during the year ended December 30, 2017:
|  |  |  |  | Weighted-
|  |  |  |  | average grant-
|  |  |  | Stock options | date fair value
Non-vested, beginning of year | 2,843,676 | $ | 3.06
Granted | 1,120,406 |  | 4.12
Vested | (756,075) |  | 3.19
Forfeited | (1,058,786) |  | 3.05
Non-vested, end of year | 2,149,221 | $ | 3.57
The weighted-average grant-date fair values of all stock options granted in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, were $4.12, $1.86 and $4.37, respectively. The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the stock options granted in those years were as follows:
|  |  |  | December 30, 2017 | December 31, 2016 | January 2, 2016
Grant-date stock price | $9.29 | $4.25 | $8.41
Dividend yield(1) | 0% | 0% | 0%
Expected volatility(2) | 42.1% | 41.7% | 50.1%
Risk-free interest rate(3) | 2.0% | 1.6% | 1.9%
Expected life of options (years)(4) | 6.4 | 6.0 | 6.5
(1) Determined based on expected annual dividend yield at the time of grant. (2) Determined based on historical volatility of the Company’s C ommon S hares over the expected life of the option. (3) Determined based on the yield on U.S. Treasury zero-coupon issues with maturity dates equal to the expected life of the option. (4) Determined using simplified method, as the Company changed the vesting period of its stock option grants from five years to three years in 2016, and, as a result, historical exercise data may not provide a reasonable basis upon which to estimate expected life. The following table summarizes stock options outstanding and exercisable as at December 30, 2017:
|  |  |  |  |  | Weighted- |  |  |  |  |
|  |  |  |  |  | average |  |  |  |  |
|  |  | remaining | Weighted- |  | Weighted-
Exercise price range | Outstanding | contractual life | average exercise | Exercisable | average exercise
| Low |  |  | High | options | (years) | price | options | price
$ | 3.27 |  | $ | 5.14 | 664,048 | 6.43 | $ | 3.41 | 184,866 | $ | 3.78
| 5.15 |  |  | 7.28 | 636,177 | 6.47 |  | 6.01 | 383,844 |  | 5.74
| 7.29 |  |  | 9.38 | 704,499 | 6.53 |  | 8.00 | 294,900 |  | 7.40
| 9.39 |  |  | 9.60 | 706,052 | 9.40 |  | 9.50 | - |  | -
| 9.61 |  |  | 13.86 | 595,952 | 5.46 |  | 10.75 | 293,897 |  | 10.89
|  |  |  |  | 3,306,728 | 6.92 | $ | 7.51 | 1,157,507 | $ | 7.16
Total compensation costs related to non-vested stock option awards not yet recognized as an expense was $5.3 million as at December 30, 2017, which will be amortized over a weighted-average remaining vesting period of 2.2 years. Restricted Stock Units For the year ended December 30, 2017, the Company granted 762,710 RSUs to selected employees and directors. RSUs grante d to employees vest ratably on each of the first through third anniversaries of the grant date. RSUs granted to directors vest 100% on the first anniversary of the grant date. Each vested RSU will entitle the employee or director to receive one common sh are of the Company. The weighted-averag e grant-date fair value of the RSUs was estimated to be $9.18, based on the stock price of the Common Shares as of the dates of grant. The following table summarizes non-vested RSU activity during the year ended December 30, 2017:
|  |  |  |  | Weighted-
|  |  |  |  | average grant-
|  |  |  | RSUs | date fair value
Non-vested, beginning of year | 175,860 | $ | 6.10
Granted | 762,710 |  | 9.18
Vested | (95,724) |  | 6.31
Forfeited | (67,490) |  | 9.50
Non-vested, end of year | 775,356 | $ | 8.85
Total compensation costs related to non-vested RSU awards not yet recognized as an expense was $4.9 million as at December 30, 2017, which will be amortized over a weighted-average remaining vesting period of 2.2 years. Performance Share Units For the year ended December 30, 2017, the Company granted 1,560,535 PSUs to selected employees. T he vesting of the PSUs is subject to the satisfaction of certain stock price performance conditions during a three-year performance period ending May 24, 2020. One-third of the PSUs will vest upon achieving a stock price of $11.00, one-third will vest upon achieving a stock price of $14.00, and one-third will vest upon achieving a stock price of $18.00, in each case for 20 consecutive trading days and subject to the employee’s continued employment throughout the performance period. Each vested PSU will entitle the employee to receive one common share of the Company without payment of additional consideration. The fair value of the PSUs was estimated using a Monte C arlo valuation model, which simulates the potential outcomes for the Company’s stock price performance and determines the payouts that would occur under each scenario. Fair value is based on the average of those results. The grant-date weighted-average f air value of the PSUs was determined to be $5.64, based on the following inputs to the valuation model:
Grant-date stock price |  |  | $ | 9.33
Dividend yield |  |  |  | 0%
Expected volatility(1) |  |  |  | 42.2%
Risk-free interest rate(2) |  |  |  | 1.5%
Expected life (in years)(3) |  |  |  | 3.0
(1) Determined based on the historical volatility of the Common Shares over 6.5 years, which is consistent with the volatility assumption for stock options granted to employees. (2) Determined based on U.S. Treasury yields with a remaining term equal to the expected li fe of the PSUs. (3) Determined based on vesting for the PSUs. The following table summarizes non-vested PSU activity during the year ended December 30, 2017:
|  |  |  |  | Weighted-
|  |  |  |  | average grant-
|  |  |  | PSUs | date fair value
Non-vested, beginning of year | 454,425 | $ | 6.75
Granted | 1,560,535 |  | 5.64
Forfeited or cancelled | (495,208) |  | 6.70
Non-vested, end of year | 1,519,752 | $ | 5.68
Total compensation costs related to non-vested P SU awards not yet recognized as an expense was $6.4 million as at December 30, 2017, which will be amortized over a weighted-average remaining vesting period of 2.4 years. CEO Plan On February 6, 2017, David Colo was appointed President and CEO of the Company. In connection with his appointment, the Company granted Mr. Colo 473,940 performance-based stock options (the “Special Stock Options”) and 277,780 PSUs. In addition, Mr. Colo was granted 100,000 RSUs, of which 50,000 were contingent on Mr. Colo purchasing Common Shares with an aggregate value of $1.0 million in the open market. The vesting of the Special Stock Options and PSUs is subject to: (i) Mr. Colo’s continued employment with the Compa ny during a three-year performance period ending February 6, 2020; and (ii) the satisfaction of certain stock price performance conditions during the p erformance p eriod. One-third of the Special Stock Options and PSUs will vest upon achieving a stock price of $11.00, one-third will vest upon achieving a stock price of $14.00, and one-third will vest upon achieving a stock price of $18.00, in each case for 20 consecutive trading days and subject to Mr. Colo’s contin ued employment through the p erformance p eriod. Each vested Special Stock Option will entitle Mr. Colo to purchase one common share of the Company at an exercise price of $7.00, which was equal to the closing price of the Common Shares as at February 6, 20 17. Each vested PSU will entitle Mr. Colo to receive one common share of the Company without payment of additional consideration. The grant-date weighted-average fair values of the Special Stock Options and PSUs were esti mated using a Monte Carlo valuati on model and determined to be $1.84 and $2.79, respectively, based on the following i nputs to the valuation model:
|  |  |  |  | Special Stock |  |
|  |  |  |  | Options |  | PSUs
Grant-date stock price | $ | 7.00 | $ | 7.00
Exercise price | $ | 7.00 |  | NA
Dividend yield |  | 0% |  | 0%
Expected volatility(1) |  | 42.0% |  | 42.0%
Risk-free interest rate(2) |  | 2.2% |  | 1.5%
Expected life (in years)(3) |  | 6.5 |  | 3.0
(1) Determined based on the historical volatility of the Common Shares over the expected life of the Special Stock Options. (2) Determined based on U.S. Treasury yields with a remaining term equal to the respective expected lives of the Special Stock Options and PSUs. (3) Determined using the simplified method for the Special Stock Options, based on the mid-point of vesting (three years) and expiration (ten years). Determined based on vesting for the PSUs. The aggregate grant-date fair value of th e Special Stock Options and PSUs awarded to Mr. Colo was $1.6 million, which will be recognized on a straight-line basis over the requisite three-year performance period. The RSUs granted to Mr. Colo vest in three equal installments beginning on February 6, 2018. Each vested RSU will entitle Mr. Colo to receive one common share of the Company. The grant-date fair value of the RSUs was estimated to be $7.00 based on the stock price of the Common Shares as of the date of grant. The aggregate grant-date f air value of the RSUs awarded to Mr. Colo of $0.7 million will be recognized on a straight-line basis over the three-year vesting period. Employee S hare P urchase P lan The Company maintains an employee share purchase plan whereby employees can purchase common shares through payroll deductions. In the year ended December 30, 2017, the Company’s employees purchased 61,796 common shares (December 31, 2016 – 82,841; January 2, 2016 – 55,024) for total proceeds of $0.4 million (December 31, 2016 – $0.4 million; January 2, 2016 – $0.4 million). As at December 30, 2017, 1,112,073 common shares are remaining to be granted under thi s plan.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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