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Share-based Compensation | 9 Months Ended
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Oct. 02, 2022
Share-Based Payment Arrangement [Abstract] |
Share-based Compensation | Share-based Compensation Restricted Stock Units (“RSUs”) The Company and certain of its subsidiaries issue time-vested RSUs under their respective executive ownership plans and long-term incentive plans. RSU activity under the Company’s various plans during the periods presented is as follows:
(in thousands, except per share amounts) | Non-vested shares outstanding at January 2, 2022 |  | Granted |  |  |  | Vested |  | Forfeited |  | Non-vested shares outstanding at October 2, 2022
KKI |  |  |  |  |  |  |  |  |  |  |
RSUs | 5,866 |  |  | 995 |  |  |  |  | 281 |  |  | 801 |  |  | 5,779 |
Weighted Average Grant Date Fair Value | $ | 13.78 |  |  | 14.34 |  |  |  |  | 9.54 |  |  | 14.18 |  |  | $ | 14.03 |
KKUK |  |  |  |  |  |  |  |  |  |  |
RSUs | 60 |  |  | — |  |  |  |  | — |  |  | — |  |  | 60 |
Weighted Average Grant Date Fair Value | $ | 15.77 |  |  | — |  |  |  |  | — |  |  | — |  |  | $ | 15.77 |
Insomnia Cookies |  |  |  |  |  |  |  |  |  |  |
RSUs | 33 |  |  | 10 |  |  |  |  | 1 |  |  | 5 |  |  | 37 |
Weighted Average Grant Date Fair Value | $ | 79.66 |  |  | 169.70 |  |  |  |  | 74.12 |  |  | 102.67 |  |  | $ | 100.67 |
KK Australia |  |  |  |  |  |  |  |  |  |  |
RSUs | 1,897 |  |  | 21 |  |  |  |  | 1,564 |  |  | — |  |  | 354 |
Weighted Average Grant Date Fair Value | $ | 1.48 |  |  | 1.73 |  |  |  |  | 1.49 |  |  | — |  |  | $ | 1.47 |
KK Mexico |  |  |  |  |  |  |  |  |  |  |
RSUs | 58 |  |  | 2 |  |  |  |  | — |  |  | — |  |  | 60 |
Weighted Average Grant Date Fair Value | $ | 32.86 |  |  | 40.14 |  |  |  |  | — |  |  | — |  |  | $ | 33.08 |
The Company recorded total non-cash compensation expense related to RSUs under the plans of $2.5 million and $11.4 million for the quarter and three quarters ended October 2, 2022, respectively, and $5.1 million and $14.9 million for the quarter and three quarters ended October 3, 2021, respectively. The unrecognized compensation cost related to the unvested RSUs and the weighted-average period over which such cost is expected to be recognized are as follows:
| As of October 2, 2022
| Unrecognized Compensation Cost |  | Recognized Over a Weighted-Average Period of
KKI | $ | 49,955 |  |  | 3.0 years
KKUK | 222 |  |  | 1.2 years
Insomnia Cookies | 2,502 |  |  | 3.0 years
KK Australia | 192 |  |  | 1.8 years
KK Mexico | 1,431 |  |  | 3.2 years
The estimated fair value of restricted stock is calculated using a market approach (i.e., market multiple is used for the KKUK and Insomnia Cookies plans and an agreed-upon EBITDA buyout multiple is used for KK Australia and KK Mexico plans). Time-Vested Stock Options KKI issues time-vested stock options under its Omnibus Incentive Plan. The fair value of time-vested stock options was estimated on the date of grant using the Black-Scholes option pricing model. A summary of the status of the time-vested stock options as of January 2, 2022 and changes during the first three quarters of fiscal 2022 is presented below:
| Share Options Outstanding At |  |  |  |  |  |  |  | Share Options Outstanding At
(in thousands, except per share amounts) | January 2, 2022 |  | Granted |  | Exercised |  | Forfeited or Expired |  | October 2, 2022
KKI |  |  |  |  |  |  |  |  |
Options | 2,817 |  |  | — |  |  | — |  |  | 248 |  |  | 2,569
Weighted Average Grant Date Fair Value | $ | 6.10 |  |  | — |  |  | — |  |  | 6.10 |  |  | $ | 6.10
Weighted Average Exercise Price | $ | 14.61 |  |  | — |  |  | — |  |  | 14.61 |  |  | $ | 14.61
The Company recorded total non-cash compensation expense related to the time-vested stock options of $0.3 million and $1.9 million for the quarter and three quarters ended October 2, 2022, respectively, and $1.2 million and $2.1 million for the quarter and three quarters ended October 3, 2021, respectively. The unrecognized compensation cost related to the unvested stock options and the weighted-average period over which such cost is expected to be recognized are as follows:
| As of October 2, 2022
| Unrecognized Compensation Cost |  | Recognized Over a Weighted-Average Period of
KKI | $ | 10,429 |  |  | 3.6 years
No time-vested stock options under the KKI plan vested nor were exercised during the fiscal periods presented.

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