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STOCK-BASED COMPENSATION | 12 Months Ended
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Dec. 29, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We record stock-based compensation expense for restricted stock awards, restricted stock units, performance share units (collectively, “stock-based awards”), and shares purchased under an employee stock purchase plan (“ESPP”). Refer to Note 1: Summary of Significant Accounting Policies for more information on how we measure and recognize stock-based compensation expense. Our 2016 Omnibus Incentive Plan (“Incentive Plan”), effective May 11, 2016, applies to directors, officers, employees and consultants of the Company and permits the granting of nonqualified and incentive stock options, restricted stock awards, performance share units (“PSUs”), restricted stock units and stock appreciation rights. At the time of adoption, there were 1.5 million shares available for issuance. Additional shares were authorized under the Incentive Plan of 1.8 million shares on May 9, 2018, 0.7 million shares on May 11, 2023, and 0.8 million shares on May 15, 2024. Stock-based awards Under the Incentive Plan, stock-based awards are granted to the Board, executive officers and key employees. Stock-based awards granted to executive officers and key employees generally vest annually over three or four years. Restricted stock units granted to members of our Board vest in the fourth quarter of the same fiscal year in which the shares are granted. Receipt of the vested shares may be deferred until after a director leaves the Board. PSUs are only granted to certain executive officers. Vesting of PSUs is contingent upon the achievement of return on equity, profitability, individual performance, or relative total shareholder return (“rTSR”) goals at the end of each performance period, which is generally three years. Each PSU is equivalent to one share of common stock. The grant-date fair value of PSUs that are contingent on rTSR is calculated using a Monte Carlo simulation. The following assumptions were used in estimating this fair value of these awards granted in 2024:
| 2024
Risk-free interest rate (1) | 4.5 | %
Expected dividend yield (2) | — | %
Expected term (years) | 3.0
Expected volatility (3) | 43.7 | %
(1) The average risk-free interest rate was based on the zero-coupon rate derived from the Treasury Constant Maturities yield curve corresponding to the expected term in effect as of the grant date. (2) The expected dividend yield was not relevant as we did not pay dividends on common stock and do not currently expect to pay dividends during the term of the stock awards granted. (3) We determined expected volatility using the change in our stock price over the historical expected term. Stock-based award activity for the fiscal year ended December 29, 2024, was as follows:
(shares in thousands) | Shares | Weighted-average grant-date fair value
Non-vested at beginning of period | 1,576 |  | $ | 19.88 |
Granted (1) | 1,220 |  | $ | 11.19 |
Vested | (511) |  | $ | 18.39 |
Forfeited | (277) |  | $ | 17.54 |
Non-vested at the end of the period | 2,008 |  | $ | 15.29 |
(1) Includes 0.1 million shares of PSUs that are contingent on a market-based performance criteria. These shares had a fair market value of $10.00 using the Monte Carlo simulation discussed above. The following table summarizes the weighted-average grant-date fair value per share for stock-based awards granted:
| 2024 | 2023 | 2022
Weighted-average grant-date fair value | $11.19 | $17.77 | $25.51
As of December 29, 2024, total estimated unrecognized stock-based compensation expense was $13.9 million. We expect to recognize this expense over a weighted average remaining period of 1.7 years. The total fair value of stock-based awards that vested during fiscal 2024, 2023 and 2022 was $5.7 million, $12.2 million and $13.9 million, respectively. Employee Stock Purchase Plan At the time of adoption in 2010, there was 1.0 million shares of common stock authorized for purchase under our ESPP. Effective May 11, 2023, an additional 1.0 million shares of common stock were authorized for purchase under our ESPP. The plan allows eligible employees to contribute up to 10% of their earnings toward the monthly purchase of the company’s common stock. The employee’s purchase price is 85% of the lesser of the company’s common stock price on either the first day or the last day of each calendar month. We consider our ESPP to be a component of stock-based compensation and accordingly we recognize compensation expense over the requisite service period for stock purchases made under the plan. The requisite service period begins on the enrollment date and ends on the purchase date, the duration of which is one month. The following table summarizes transactions under our ESPP:
(shares in thousands) | 2024 | 2023 | 2022
Shares issued | 79 |  | 63 |  | 52 |
Average price per share | $ | 8.74 |  | $ | 13.58 |  | $ | 18.85 |
Stock-based compensation expense Total stock-based compensation expense for fiscal 2024, 2023 and 2022, which is included in SG&A expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), was $7.6 million, $13.9 million and $9.7 million, respectively. The related tax benefit, calculated using our statutory tax rate, was $1.6 million, $2.9 million and $2.0 million for fiscal 2024, 2023 and 2022, respectively.

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