Preferred and Common Shares and Share-Based Compensation (Tables)

9 Months Ended

Sep. 29, 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				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
	2023		2022		2023		2022
Selling, general and administrative	$	5,229	$	4,649	$	15,631	$	13,906
Research and development and engineering		510		586		1,495		1,780
Cost of revenue		298		719		1,252		2,123
Total share-based compensation expense	$	6,037	$	5,954	$	18,378	$	17,809

Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions

The grant-date fair value of the hybrid PSUs granted during the nine months ended September 29, 2023 was estimated using the Monte Carlo valuation method with the following assumptions:

	Nine Months Ended September 29, 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 nine months ended September 29, 2023 was estimated using the following assumptions as of the grant date:

	Nine Months Ended September 29, 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 nine months ended September 29, 2023:

	Shares (In thousands)			Weighted Average Grant Date Fair Value
Unvested at December 31, 2022		238		$	128.26
Granted		91		$	156.47
Vested		(102	)	$	122.48
Forfeited		(24	)	$	139.50
Unvested at September 29, 2023		203		$	142.72
Expected to vest as of September 29, 2023		185

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 nine months ended September 29, 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		(16	)	$	168.97
Unvested at September 29, 2023		207		$	160.40
Expected to vest as of September 29, 2023		246

(1) The amount shown represents performance adjustments related to the performance-based awards granted on February 20, 2020. These performance-based awards vested at a blended payout of 142% during the nine months ended September 29, 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 nine months ended September 29, 2023:

	Shares (In thousands)		Weighted Average Exercise Price
Outstanding as of December 31, 2022		84	$	72.18
Granted		48	$	156.72
Exercised		—	$	—
Forfeited or expired		—	$	—
Outstanding as of September 29, 2023		132	$	102.86
Exercisable as of September 29, 2023		57
Expected to vest as of September 29, 2023		75