XML 42 R20.htm IDEA: XBRL DOCUMENT
v3.20.4

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 27, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | (13) Stock-Based Compensation Stock-Based Compensation Granted Under the 2019 Long-Term Incentive Plan Stock options and restricted stock units are awarded under the 2019 Long-Term Incentive Plan (the “2019 Plan”) to eligible employees and certain non-employee members of the Board of Directors. The 2019 Plan gives broad powers to the Company’s Board of Directors to administer and interpret the 2019 Plan, including the authority to select the individuals to be granted equity awards and rights and to prescribe the particular form and conditions of each equity award to be granted. On May 16, 2019, the Company’s stockholders approved the 2019 Plan and, in connection therewith, all equity awards made after that date were made under the 2019 Plan. On June 10, 2019, the Company registered 1,200 thousand shares of its common stock reserved for issuance under the 2019 Plan. The Amended and Restated 2013 Long-Term Incentive Plan (the “2013 Plan”) had 626 thousand remaining shares of common stock reserved for issuance, which are available for issuance under the 2019 Plan and no future awards will be made under the 2013 Plan. On June 24, 2020 the 2019 Plan was amended and restated effective to increase the number of shares of common stock authorized for issuance by 900 thousand shares, for a total of 2,100 thousand shares. As of December 27, 2020, there have been 2,908 thousand shares of restricted stock units and performance stock units granted under the 2019 Plan. There were no options or shares of common stock granted in 2020 or 2019 under the 2019 Plan. As of December 27, 2020, there are 2,068 thousand shares reserved for future issuance. Stock Options Under the Plans, the number of shares and exercise price of each option are determined by the committee designated by the Company’s Board of Directors. The options granted are generally exercisable within a 10-year period from the date of grant. The company awards options to certain employees including the senior leadership team. Options outstanding expire on various dates through the year 2028. The range of exercise prices for options outstanding as of December 27, 2020 is $7.22 to $20.53 per option, and the options generally vest in one-fourth and one-fifth increments over four and five-year periods, respectively. A summary of stock option activity is as follows:
Options |  | Shares (Thousands) |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value (Thousands) |  |  | Weighted Average Remaining Term (Years) |
Outstanding—December 31, 2017 |  |  | 3,309 |  |  | $ | 10.71 |  |  | $ | 7,699 |  |  |  | 4.90 |
Granted |  |  | 203 |  |  |  | 11.27 |  |  |  |  |  |  |  |  |
Exercised |  |  | (993 | ) |  |  | 8.30 |  |  |  |  |  |  |  |  |
Canceled |  |  | (369 | ) |  |  | 13.63 |  |  |  |  |  |  |  |  |
Outstanding—December 30, 2018 |  |  | 2,150 |  |  | $ | 11.49 |  |  | $ | 378 |  |  |  | 5.13 |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Exercised |  |  | (22 | ) |  |  | 7.93 |  |  |  |  |  |  |  |  |
Canceled |  |  | (354 | ) |  |  | 12.45 |  |  |  |  |  |  |  |  |
Outstanding—December 29, 2019 |  |  | 1,774 |  |  | $ | 11.34 |  |  | $ | — |  |  |  | 4.33 |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Exercised |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Canceled |  |  | (541 | ) |  |  | 12.84 |  |  |  |  |  |  |  |  |
Outstanding—December 27, 2020 |  |  | 1,233 |  |  | $ | 10.68 |  |  | $ | — |  |  |  | 2.49 |
Exercisable—December 27, 2020 |  |  | 1,217 |  |  | $ | 10.65 |  |  | $ | — |  |  |  | 2.43 |
There were no stock option grants in 2020 and 2019. The following table reflects the average assumptions utilized in the Black-Scholes option-pricing model to value the options granted for 2018:
|  |  |  |  |  | 2018 |
Risk-free interest rate |  |  |  |  |  |  |  | 3.0 | %
Expected life (years) |  |  |  |  |  |  |  | 6.25 |
Expected dividend yield |  |  |  |  |  |  |  | — |
Volatility |  |  |  |  |  |  |  | 35.0 | %
Weighted average grant date fair value |  |  |  |  |  |  | $ | 4.52 |
The risk-free rate is based on U.S. Treasury rates in effect at the time of the grant with a similar duration of the expected life of the options. The expected life of options granted is derived from the average of the vesting period and the term of the option. The Company has not paid dividends to date (with exception to the one-time dividend paid to stockholders prior to the initial public offering) and does not plan to pay dividends in the near future. Stock-based compensation related to stock options is measured at the grant date based on the calculated fair value of the award, and is recognized as expense over the requisite employee service period, which is generally the vesting period of the grant with a corresponding increase to additional paid-in capital. For t he years ended December 27, 2020, Decembe r 29, 2019 and December 30, 2018, the Company recognized stock-based compensation expense related to stock options of $0.1 million, $0.8 million and $1.4 million, respectively. The Company records stock-based compensation expense within general and administrative expenses in the consolidated statements of operations. As of December 27, 2020, unrecognized stock-based compensation expense related to stock options was $0.1 million, which will be recognized through fiscal year 2022. Restricted stock units The Company awards restricted stock units (“RSUs”) to certain employees of the Company and certain non-employee members of its Board of Directors. The Board of Director grants have a vesting schedule of 50% on the first anniversary of the grant date and 50% on the second anniversary of the grant date. The employee grants vest in one-third increments over a three-year period. A summary of RSU activity is as follows:
RSUs |  |  | Number of RSUs (Thousands) |  |  | Weighted Average Fair Value per Share |
Non-vested as of December 31, 2017 |  |  |  | 267 |  |  | $ | 11.79 |
Granted |  |  |  | 131 |  |  |  | 12.12 |
Vested |  |  |  | (121 | ) |  |  | 11.92 |
Canceled |  |  |  | (30 | ) |  |  | 11.05 |
Non-vested as of December 30, 2018 |  |  |  | 247 |  |  | $ | 11.99 |
Granted |  |  |  | 402 |  |  |  | 6.47 |
Vested |  |  |  | (135 | ) |  |  | 11.94 |
Canceled |  |  |  | (51 | ) |  |  | 8.48 |
Non-vested as of December 29, 2019 |  |  |  | 463 |  |  | $ | 7.59 |
Granted |  |  |  | 1,604 |  |  |  | 2.79 |
Vested |  |  |  | (231 | ) |  |  | 2.87 |
Canceled |  |  |  | (842 | ) |  |  | 3.65 |
Non-vested as of December 27, 2020 |  |  |  | 994 |  |  | $ | 3.35 |
For the years ended December 27, 2020, December 29, 2019 and December 30, 2018, the Company recognized stock-based compensation expense related to RSUs of $1.5 million, $1.5 million and $1.5 million, respectively. As of December 27, 2020, unrecognized stock-based compensation expense for RSUs was $1.3 million, which will be recognized though fiscal year 2023. Performance stock units The Company awards performance share units (“PSUs”) to certain employees. The PSUs have certain vesting conditions based upon the Company’s financial performance or the Company’s stock price. The Company previously granted PSUs that are subject to service and performance vesting conditions. The PSUs will vest based on the Company’s achievement of certain targets related to adjusted EBITDA and same store sales goals. The quantity of shares that will vest ranges from 0% to 200% of the targeted number of shares. If the defined minimum targets are not met, then no shares will vest. For the year ended December 27, 2020, no expense was recognized related to PSUs with performance vesting conditions. These shares were not presented in the PSU table below given they are not expected to vest. In 2020, the Company granted PSUs with multiple tranches that are subject to service and market vesting conditions. The fair market value was established using a Monte Carlo simulation model. Participants are entitled to receive a specified number of shares of the Company’s common stock contingent on the Company’s achievement of a stock return on the Company’s common stock. The PSUs may vest during a performance period of five years. Compensation expense for these awards is being amortized over an average expected service period or earlier based on when each tranche’s vesting conditions are met. For the year ended December 27, 2020, the Company recognized stock-based compensation expense for PSUs with market vesting conditions of $0.9 million. A summary of activity for PSUs with market vesting conditions is as follows:
PSUs |  |  | Number of PSUs (Thousands) |  |  | Weighted Average Fair Value per Share |
Non-vested as of December 29, 2019 |  |  |  | — |  |  | $ | — |
Granted |  |  |  | 1,475 |  |  |  | 1.43 |
Vested |  |  |  | (501 | ) |  |  | 4.45 |
Canceled |  |  |  | (472 | ) |  |  | 1.50 |
Non-vested as of December 27, 2020 |  |  |  | 502 |  |  | $ | 1.38 |

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration