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Stock Compensation
 9 Months Ended
Sep. 29, 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 vested on July 16, 2018. On the vesting date, half of the vested value of the cash-settled SARs became 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 a 20 day trading average of the Company’s common stock through the vesting date, in excess of the $7.00 grant date valuation.
As of September 29, 2018, there were 222,500 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 September 29, 2018, the total liability was approximately $7.2 million, which reflects the fair value of the remaining SARs valued at the vesting date.
The following table summarizes the assumptions used to compute the current fair value of our cash-settled SARs:
 
 
September 29, 2018[1]
 
December 30, 2017[2]
Stock price
 
$
38.17

 
$
9.76

Expected volatility
 
Not applicable

 
33.80
%
Risk-free interest rate
 
Not applicable

 
1.55
%
Expected term (in years)
 
0

 
0.54

Expected dividend yield
 
Not applicable

 
Not applicable


__________________________ 
[1]Reflects the exercise price based on the 20 day trading average through vesting date (June 18, 2018 - July 16, 2018).
[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 September 29, 2018 and September 30, 2017, we incurred stock compensation expense of $1.7 million and $0.3 million, respectively. During the nine months ended September 29, 2018 and September 30, 2017, we incurred stock compensation expense of $14.7 million and $1.8 million, respectively. The increase in our stock compensation expense for the three- and nine-month periods of fiscal 2018 is attributable to cash-settled SARs.