XML 50 R36.htm IDEA: XBRL DOCUMENT

Stock Plans (Tables)

12 Months Ended

Dec. 30, 2017

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each of these option awards is estimated on the date of grant using the Black-Scholes option pricing model with the weighted average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s common stock. Since the Company’s option exercise history is limited, it has estimated the expected term of these options (other than the options with a seven-year term) to be the midpoint between the vesting period and the contractual term of each option. For options with a seven-year contractual term, the expected term is equal to 7 years. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the Time-Vesting Options. The dividend yield is based on the Company’s historic average dividend yield.

	December 30,	December 31,		January 2,
	2017	2016		2016
Dividend yield	0.0%	0.0%		0.0%
Volatility	51.3%-51.7%	49.6%-51.4%		41.0%
Risk-free interest rate	2.17%	1.24%-2.26%		1.84%-1.89%
Expected term (years)	6.0-7.0		6.0		6.0

Summary of Option Activity Under Stock Plans, Inducement Option and Winfrey Option

A summary of all option activity under the Stock Plans and with respect to the Inducement Option and the Winfrey Option (see Note 4 for additional disclosure regarding the Winfrey Option) for the fiscal year ended December 30, 2017 is presented below:

						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Life (Yrs.)		Value
Outstanding at December 31, 2016		5,113		$	11.76
Granted		1,302		$	45.95
Exercised		(275	)	$	13.94
Cancelled		(256	)	$	35.86
Outstanding at December 30, 2017		5,884		$	18.17		7.3	$	163,681
Exercisable at December 30, 2017		4,214		$	10.60		7.4	$	144,138

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

A summary of RSU activity under the Stock Plans for the fiscal year ended December 30, 2017 is presented below:

				Weighted-Average
				Grant-Date Fair
	Shares			Value
Outstanding at December 31, 2016		1,138		$	14.15
Granted		682		$	31.58
Vested		(671	)	$	15.21
Forfeited		(72	)	$	15.74
Outstanding at December 30, 2017		1,077		$	24.22

Schedule of Share-based Compensation, Performance Stock Units Award Activity

Additionally, in fiscal 2016, the Company granted 289.9 PSUs having both time- and performance-vesting criteria. The time-vesting criteria for these PSUs will be satisfied on the third anniversary of the grant date (i.e., May 16, 2019). The performance-vesting criteria for these PSUs will be satisfied if the Company has achieved a Debt Ratio (as defined in the applicable term sheet for these PSU awards and based on a Debt to EBITDAS ratio (each, as defined therein)) at levels at or above a “threshold” level performance of 4.5x over the performance period from December 31, 2017 to December 29, 2018. Pursuant to these awards, the number of PSUs that become vested, if any, upon the satisfaction of both vesting criteria, shall be equal to (x) the target number of PSUs granted multiplied by (y) the applicable Debt Ratio achievement percentage, rounded down to avoid the issuance of fractional shares. If all of these awards fully meet the time-vesting criteria and the minimum performance condition is attained, depending on the Company’s Debt Ratio achievement, the number of shares of the Company’s common stock issuable under these PSUs range from 61.1 to 305.4. The Company is currently accruing compensation expense to what it believes is the probable outcome upon vesting.

The fair value of PSUs is determined using the closing market price of the Company’s common stock on the date of grant. A summary of PSU activity under the 2014 Plan for the fiscal year ended December 30, 2017 is presented below:

				Weighted-Average
				Grant-Date Fair
	Shares			Value
Outstanding at December 31, 2016		198		$	13.19
Granted		146		$	27.22
Vested		0		$	0
Forfeited		(14	)	$	13.20
Outstanding at December 30, 2017		330		$	19.42

Special Performance Based Options Awards

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The expected term represented the period from the grant date to the end of the five year performance period. Compensation expense on T&P Options was recognized ratably over the three year required service period as this period was longer than the derived service period calculated by the Monte Carlo simulation.

	December 30,		December 31,		January 2,
	2017		2016		2016
Dividend yield	0%		0%		0%
Volatility	0%		0%		40.5%
Risk-free interest rate	0.00%		0.00%		1.60%
Expected term (years)		0.0		0.0		5.0