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Stock Compensation
 6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Compensation Stock Compensation
Cash-Settled Stock Appreciation Rights (“SARs”)
During fiscal 2016, we granted certain executives and employees cash-settled SARs. The cash-settled SARs vest on July 16, 2018, unless otherwise specifically amended. On the vesting date, half of any vested value of the cash-settled SARs will become payable within thirty days of the vesting date, and the remainder payable within one year of the vesting date. The exercise price for the cash-settled SARs was amended so that it is based on a 20 trading day average of the Company’s common stock through the vesting date, in excess of the $7.00 grant date valuation.
As of June 30, 2018, there were 445,000 cash-settled SARs issued and outstanding. On December 30, 2017, we had accrued a total liability of approximately $1.0 million for the cash-settled SARs. On June 30, 2018, we increased the total liability to approximately $13.3 million, based on the assumptions below, which were largely driven by an increase in our stock price.
The following table summarizes the assumptions used to compute the current fair value of our cash-settled SARs:
 
 
June 30, 2018[1]
 
December 30, 2017[2]
Stock price
 
$
37.44

 
$
9.76

Expected volatility
 
65.04
%
 
33.80
%
Risk-free interest rate
 
1.73
%
 
1.55
%
Expected term (in years)
 
0.04

 
0.54

Expected dividend yield
 
Not applicable

 
Not applicable


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[1]Reflects an assumed exercise price based on the 20 trading day average. The 20 trading day average was based on the 20 trading days prior to the last trading day of the fiscal quarter, inclusive of the last trading day.
[2]Reflects an assumed exercise price based on the closing stock price, as per the original SARs Agreement. The closing stock price used in the analysis was the closing stock price on the last trading day of the fiscal quarter.
Stock Compensation Expense
During the three months ended June 30, 2018 and July 1, 2017 we incurred stock based compensation expense of $3.8 million and $0.7 million respectively. During the six months ended June 30, 2018 and July 1, 2017 we incurred stock compensation expense of $13.0 million and $1.5 million, respectively. The increase in our stock compensation expense for the three and six-month periods of fiscal 2018 is attributable to cash-settled stock appreciation rights.