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Shareholders' Equity
12 Months Ended
Jan. 01, 2021
Stockholders Equity Note [Abstract]  
Shareholders' Equity

11. Shareholders’ Equity

Employee Stock Purchase Plan

Effective July 1, 1998, the Company adopted an Employee Stock Purchase Plan to provide substantially all employees who have completed three months of service as of the beginning of an offering period an opportunity to purchase shares of its common stock through payroll deductions. Purchases on any one grant are limited to 10% of eligible compensation. Shares of the Company’s common stock may be purchased by employees at six -month intervals at 95% of the fair value on the last trading day of each six-month period. The aggregate fair value, determined as of the first trading date of the offering period, of shares purchased by an employee may not exceed $25,000 annually.  In 2017, the Company’s Board of Directors and the Company’s shareholders approved an extension of the Employee Stock Purchase Plan to July 1, 2023 from July 1, 2018 and added an additional 250,000 shares of common stock which increased the total available shares of common stock to 279,606 at that time.  As of year-end 2020, a total of 73,573 shares of common stock were available for purchase under the plan. For plan years 2020, 2019 and 2018, 56,679 shares, 51,548 shares and 55,045 shares, respectively, were issued for total proceeds of $0.8 million in each year.

Treasury Stock

On July 30, 2002, the Company announced that its Board of Directors approved the repurchase of up to $5.0 million of the Company’s common stock. Since the inception of the repurchase plan, the Board of Directors approved the repurchase of an additional $142.2 million of the Company’s common stock, thereby increasing the total program size to $147.2 million as of January 1, 2021. As of January 1, 2021, the Company had affected cumulative purchases under the plan of $142.9 million, leaving $4.3 million available for future purchases. There is no expiration of the authorization.  Under the repurchase plan, the Company may buy back shares of its outstanding stock from time to time either on the open market or through privately negotiated transactions, subject to market conditions and trading restrictions.    

11. Shareholders’ Equity (continued)

 

During 2020 and 2019, the Company repurchased 184 thousand and 339 thousand shares of its common stock, respectively, at an average price per share of $12.84 and $15.60, respectively, for a total cost of $2.4 million and $5.3 million, respectively. As of January 1, 2021 and December 27, 2019 the Company had repurchased 27.6 million and 27.4 million shares of its common stock, respectively, at an average price of $5.19 per share and $5.14 per share, respectively. During 2020, the Company repurchased 37 thousand shares of its common stock from members of its Board of Directors for $0.7 million or $17.43 per share.  The proceeds from the sale of these shares were used in part to cover estimated tax liabilities associated with previously vested restricted stock units.

The Company holds repurchased shares of its common stock as treasury stock and accounts for treasury stock under the cost method.

Shares purchased under the repurchase plan do not include shares withheld to satisfy withholding tax obligations. These withheld shares are never issued and in lieu of issuing the shares, taxes were paid on the employee’s behalf. In 2020, 139 thousand shares were withheld and not issued for a cost of $2.1 million bringing the total cumulative cash used to repurchase stock in 2020 to $4.5 million. In 2019, 132 thousand shares were withheld and not issued for a cost of $2.5 million, bringing the total cumulative cash used to repurchase stock in 2019 to $7.8 million. The shares withheld for taxes are included under issuance of common stock in the accompanying consolidated statements of shareholders’ equity.    

Dividends

In December 2012, the Company announced an annual dividend of $0.10 per share to be paid semi-annually. The Company has periodically increased the annual dividend since 2012.   In 2018, the Company increased the annual dividend to $0.34 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $10.8 million each paid to shareholders of record on June 29, 2018 and December 21, 2018, respectively. In 2019, the Company increased the annual dividend to $0.36 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $11.2 million each paid to shareholders of record on July 10, 2019 and December 20, 2019, respectively. The second semi-annual dividend declared in December 2019 of $5.8 million, was paid in January 2020. In 2020, the Company increased the annual dividend to $0.38 per share to be paid on a quarterly basis which resulted in aggregate dividends of $9.1 million paid to shareholders of record on June 30, 2020, September 25, 2020 and December 18, 2020, all of which were paid in 2020. These dividends were paid from U.S. domestic sources and are accounted for as an increase to accumulated deficit. Subsequent to January 1, 2021, the Company increased its annual dividend 5% to $0.40 per share to be paid on a quarterly basis and declared its first quarterly dividend for 2021 of $0.10 per share for shareholders on March 26, 2021 to be paid on April 8, 2021.