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Stock-Based Compensation | 6 Months Ended
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Jul. 13, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Note 11 – Stock-Based Compensation Stock-Based Employee Awards The Company sponsors shareholder-approved stock incentive plans that provide for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units, dividend equivalent rights, and other stock-based and stock-related awards to directors, officers and other key associates. Stock-based compensation expense recognized and included in “Selling, general and administrative expenses” in the condensed consolidated statements of earnings, and related tax impacts were as follows:
| 12 Weeks Ended |  |  | 28 Weeks Ended |
(In thousands) | July 13, 2024 |  |  | July 15, 2023 |  |  | July 13, 2024 |  |  | July 15, 2023 |
Restricted stock expense | $ |  | 1,179 |  |  | $ |  | 1,896 |  |  | $ |  | 3,261 |  |  | $ |  | 6,697 |
Restricted stock unit expense |  |  | 874 |  |  |  |  | — |  |  |  |  | 3,664 |  |  |  |  | — |
Performance share unit (benefit) expense |  |  | (197 | ) |  |  |  | 569 |  |  |  |  | (1,349 | ) |  |  |  | 915 |
Income tax benefit |  |  | (517 | ) |  |  |  | (742 | ) |  |  |  | (1,442 | ) |  |  |  | (2,909 | )
Stock-based compensation expense, net of tax | $ |  | 1,339 |  |  | $ |  | 1,723 |  |  | $ |  | 4,134 |  |  | $ |  | 4,703 |
The following table summarizes activity in the stock incentive plans for the 28 weeks ended July 13, 2024:
|  |  |  |  | Weighted |  |  |  |  |  |  | Weighted |  |  |  |  |  |  | Weighted |
| Restricted |  |  | Average |  |  | Restricted |  |  | Average |  |  | Performance |  |  | Average |
| Stock |  |  | Grant-Date |  |  | Stock |  |  | Grant-Date |  |  | Share |  |  | Grant-Date |
| Awards |  |  | Fair Value |  |  | Units |  |  | Fair Value |  |  | Units |  |  | Fair Value |
Outstanding at December 30, 2023 |  |  | 819,457 |  |  | $ |  | 24.92 |  |  |  |  | — |  |  | $ |  | — |  |  |  |  | 290,310 |  |  | $ |  | 27.00 |
Granted |  |  | — |  |  |  |  | — |  |  |  |  | 580,063 |  |  |  |  | 20.29 |  |  |  |  | 413,207 |  |  |  |  | 20.53 |
Vested |  |  | (460,364 | ) |  |  |  | 23.16 |  |  |  |  | (15,490 | ) |  |  |  | 20.41 |  |  |  |  | — |  |  |  |  | — |
Cancelled/Forfeited |  |  | (12,981 | ) |  |  |  | 26.77 |  |  |  |  | (11,631 | ) |  |  |  | 20.41 |  |  |  |  | (10,294 | ) |  |  |  | 23.39 |
Outstanding at July 13, 2024 |  |  | 346,112 |  |  | $ |  | 27.19 |  |  |  |  | 552,942 |  |  | $ |  | 20.28 |  |  |  |  | 693,223 |  |  | $ |  | 23.20 |
The following table summarizes the unrecognized compensation cost and weighted average recognition period for awards granted under the Company's stock incentive plans as of July 13, 2024:
|  |  |  |  | Weighted
| Unrecognized |  |  | Average
| Compensation |  |  | Recognition
| Cost |  |  | Period
| (In thousands) |  |  | (in years)
Restricted stock awards | $ |  | 5,476 |  |  |  | 1.3
Restricted stock units |  |  | 7,895 |  |  |  | 2.4
Performance share units |  |  | 7,664 |  |  |  | 2.4
Total | $ |  | 21,035 |  |  |  |
Stock Warrant On October 7, 2020, in connection with its entry into a commercial agreement with Amazon.com, Inc. (“Amazon”), the Company issued Amazon.com NV Investment Holdings LLC, a subsidiary of Amazon, a warrant to acquire up to an aggregate of 5,437,272 shares of the Company’s common stock (the “Warrant”), subject to certain vesting conditions. Warrant shares totaling 1,087,455 shares vested upon the signing of the commercial agreement and had a grant date fair value of $5.51 per share. Warrant shares totaling up to 4,349,817 shares may vest in connection with conditions defined by the terms of the Warrant, as Amazon makes payments to the Company in connection with the commercial supply agreement, in increments of $200 million, and had a grant date fair value of $5.33 per share. Upon vesting, shares may be acquired at an exercise price of $17.7257. The Warrant contains customary anti-dilution, down-round and change-in-control provisions. The right to purchase shares in connection with the Warrant expires on October 7, 2027. Share-based payment expense recognized as a reduction of “Net sales” in the condensed consolidated statements of earnings, and related tax benefits were as follows:
| 12 Weeks Ended |  |  | 28 Weeks Ended |
(In thousands) | July 13, 2024 |  |  | July 15, 2023 |  |  | July 13, 2024 |  |  | July 15, 2023 |
Warrant expense | $ |  | 190 |  |  | $ |  | 353 |  |  | $ |  | 516 |  |  | $ |  | 960 |
Income tax benefit |  |  | (13 | ) |  |  |  | (31 | ) |  |  |  | (55 | ) |  |  |  | (95 | )
Warrant expense, net of tax | $ |  | 177 |  |  | $ |  | 322 |  |  | $ |  | 461 |  |  | $ |  | 865 |
The following table summarizes stock warrant activity for the 28 weeks ended July 13, 2024:
|  |  |  |  |  |  |  | Warrant |
Outstanding and nonvested at December 30, 2023 |  |  |  |  |  |  |  |  | 3,262,357 |
Vested |  |  |  |  |  |  |  |  | (108,746 | )
Outstanding and nonvested at July 13, 2024 |  |  |  |  |  |  |  |  | 3,153,611 |
As of July 13, 2024, total unrecognized cost related to nonvested warrant shares was $16.4 million, which may be expensed as vesting conditions are satisfied over the remaining term of the agreement, or 3.2 years. Warrants representing 2,283,661 shares are vested and exercisable. As of July 13, 2024, nonvested warrant shares had an intrinsic value of $3.0 million, and vested warrant shares had an intrinsic value of $2.2 million.

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