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Preferred and Common Shares and Share-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share-Based Compensation Expense Recorded in the Consolidated Statements of Operations

The table below summarizes share-based compensation expense recorded in the consolidated statements of operations (in thousands):

 

Three Months Ended

 

 

March 31,

 

 

April 1,

 

 

2023

 

 

2022

 

Selling, general and administrative

$

5,531

 

 

$

5,201

 

Research and development and engineering

 

443

 

 

 

700

 

Cost of revenue

 

492

 

 

 

873

 

Restructuring, acquisition, and related costs

 

 

 

 

 

Total share-based compensation expense

$

6,466

 

 

$

6,774

 

Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions

The grant-date fair value of the Hybrid PSUs granted during the three months ended March 31, 2023 was estimated using the Monte Carlo valuation method with the following assumptions:

 

 

Three Months Ended
March 31, 2023

 

Grant-date stock price

$

156.72

 

Expected volatility

 

35.89

%

Risk-free interest rate

 

4.44

%

Expected annual dividend yield

 

 

Fair value

$

181.45

 

Schedule of Share Based Payment Award Stock Options Valuation Assumptions

The aggregate Black-Scholes fair value of $3.0 million for the stock options granted during the three months ended March 31, 2023 was estimated using the following assumptions as of the grant date:

 

Three Months Ended
March 31, 2023

 

Expected option term in years

 

4.5

 

Expected volatility

 

40.7

%

Risk-free interest rate

 

4.00

%

Expected annual dividend yield

 

 

The expected option term was calculated using the simplified method permitted under Codification of Staff Accounting Bulletins Topic 14, “Share-Based Payment”. The expected volatility was determined based on the historical volatility of the Company’s common shares over the expected option term. The risk-free interest rate was based on treasury instrument whose term was six months longer than the expected option term. The expected annual dividend yield is zero as the Company does not have plans to issue dividends.

Amended and Restated 2010 Incentive Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Restricted Stock Units and Deferred Stock Units Issued and Outstanding

The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the three months ended March 31, 2023:

 

 

Shares
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

Unvested at December 31, 2022

 

238

 

 

$

128.26

 

Granted

 

81

 

 

$

155.12

 

Vested

 

(89

)

 

$

121.47

 

Forfeited

 

(9

)

 

$

132.87

 

Unvested at March 31, 2023

 

221

 

 

$

140.82

 

Expected to vest as of March 31, 2023

 

196

 

 

 

 

Performance-Based Awards Issued and Outstanding

The table below summarizes the activities relating to the performance-based awards issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the three months ended March 31, 2023:

 

 

Shares
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

Unvested at December 31, 2022

 

216

 

 

$

144.16

 

Granted

 

57

 

 

$

179.15

 

Performance adjustments(1)

 

20

 

 

$

122.24

 

Vested

 

(70

)

 

$

116.56

 

Forfeited

 

(7

)

 

$

167.06

 

Unvested at March 31, 2023

 

216

 

 

$

160.81

 

Expected to vest as of March 31, 2023

 

241

 

 

 

 

(1) The amount shown represents performance adjustments related to the performance-based awards granted on February 20, 2020. These units vested at a blended payout of 142% during the three months ended March 31, 2023 based on the achievement of cumulative Non-GAAP EPS and applicable relative TSR performance conditions, respectively, over the performance period of fiscal years 2020 through 2022.

Stock Options Issued and Outstanding

The table below summarizes the activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the three months ended March 31, 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares
(In thousands)

 

 

Weighted
Average Exercise Price

 

Outstanding as of December 31, 2022

 

84

 

 

$

72.18

 

Granted

 

48

 

 

$

135.86

 

Exercised

 

 

 

$

 

Forfeited or expired

 

 

 

$

 

Outstanding as of March 31, 2023

 

132

 

 

$

102.86

 

Exercisable as of March 31, 2023

 

57

 

 

 

 

Expected to vest as of March 31, 2023

 

75