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Stock-Based Compensation | 6 Months Ended
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Jul. 03, 2021
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation [Text Block] | 9. Stock-Based Compensation Short-Term Incentive Plan In connection with the vesting of outstanding performance share units ("PSUs") previously granted to certain employees under the Company's 2020 Short-Term Incentive Plan, the Company issued 2,742,469 Common Shares during the second quarter of 2021, which included 1,177,397 Common Shares sold to cover the statutory income tax withholding requirements on behalf of the employees. On March 30, 2021, the Company granted a total of 612,947 PSUs to certain employees of the Company under its 2021 Short-Term Incentive Plan. The vesting of these PSUs is subject to the Company achieving a predetermined measure of adjusted EBITDA for fiscal 2021 and subject to each employee's continued employment with the Company through March 30, 2022 (the requisite service period). The aggregate grant-date fair value of these PSUs was estimated to be $8.7 million based on a closing price of $14.25 for the Common Shares on the date of grant. Each reporting period, the number of PSUs that are expected to vest is redetermined and the aggregate grant-date fair value of the redetermined number of PSUs is amortized on a straight-line basis over the remaining requisite service period less amounts previously recognized. For the quarter ended July 3, 2021, the Company recognized compensation expense of $2.2 million related to the number of these PSUs expected to vest, and the remaining compensation cost related to these PSUs not yet recognized as an expense was determined to be $6.1 million as at July 3, 2021. Long-Term Incentive Plan On April 15, 2021, the Company granted 26,305 Restricted Stock Units ("RSUs"), 70,513 PSUs and 135,668 stock options to selected employees under its 2021 Long-Term Incentive Plan. The RSUs vest in three equal annual installments beginning on April 15, 2022, and each vested RSU entitles the recipient to receive one Common Share without payment of additional consideration. The vesting of the PSUs is dependent on the Company's total shareholder return (the "TSR") performance relative to food and beverage companies in a designated index during the three-year period commencing January 1, 2021 and continuing through December 31, 2023, and the recipient's continued employment with the Company through April 15, 2024. The TSR for the Company and each of the companies in the designated index will be calculated using a 20-trading day average closing price as of December 31, 2023. The percentage of vested PSUs may range from 0% to 200% based on the Company's achievement of predetermined TSR thresholds. Each vested PSU entitles the recipient to receive one Common Share without payment of additional consideration. The stock options vest ratably on each of the first through third anniversaries of the grant date and expire on the tenth anniversary of the grant date. Each vested stock option entitles the recipient to purchase one Common Share at an exercise price of $14.77, which was the closing price of the Common Shares on April 15, 2021. The grant-date fair value of the RSUs was estimated to be $14.77 based on the closing price of the Common Shares on the date of grant. A grant-date fair value of $23.40 was estimated for the PSUs using a Monte Carlo valuation model, and a grant-date fair value of $8.33 was estimated for the stock options using the Black-Scholes option pricing model. The following table summarizes the assumptions used to determine the fair values of the PSUs and stock options granted.
|  | PSUs |  |  | Stock options |
Grant-date stock price | $ | 14.77 |  | $ | 14.77 |
Exercise price |  | NA |  | $ | 14.77 |
Dividend yield |  | 0% |  |  | 0% |
Expected volatility(1) |  | 76.9% |  |  | 61.7% |
Risk-free interest rate(2) |  | 0.3% |  |  | 1.0% |
Expected life (in years)(3) |  | 2.71 |  |  | 6.00 |
(1) Determined based on the historical volatility of the Common Shares over the performance period of the PSUs and expected life of the stock options. (2) Determined based on U.S. Treasury yields with a remaining term equal to the performance period of the PSUs and expected life of the stock options. (3) Determined based on the performance period of the PSUs and the mid-point of vesting (three years) and expiration (ten years) for the stock options. The aggregate grant-date fair value of the RSUs, PSUs and stock options was determined to be $3.2 million, which will be recognized on a straight-line basis over the three-year requisite service period ending April 15, 2024. As at July 3, 2021, total compensation costs not yet recognized as an expense was $2.9 million.

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