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

3 Months Ended

Apr. 01, 2022

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
	April 1,		April 2,
	2022		2021
Selling, general and administrative	$	5,201	$	4,929
Research and development and engineering		700		727
Cost of revenue		873		988
Total share-based compensation expense	$	6,774	$	6,644

Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions

The fair value of the TSR-PSUs at the date of grant was estimated using the Monte Carlo valuation method with the following assumptions:

	Three Months Ended April 1, 2022
Grant-date stock price	$	135.86
Expected volatility		40.70	%
Risk-free interest rate		1.69	%
Expected annual dividend yield		—
Fair value	$	141.52

Schedule of Share Based Payment Award Stock Options Valuation Assumptions

The aggregate Black-Scholes fair value of $1.9 million for the stock options granted during the three months ended April 1, 2022 was estimated using the following assumptions as of the grant date:

	Three Months Ended April 1, 2022
Expected option term in year ⁽¹⁾		4.5
Expected volatility ⁽²⁾		39.3	%
Risk-free interest rate ⁽³⁾		1.83	%
Expected annual dividend yield ⁽⁴⁾		—

⁽¹⁾

^{The expected option term was calculated using the simplified method provided by Codification of Staff Accounting Bulletins Topic 14: “Share-Based Payment”.}

⁽²⁾

^{The expected volatility was determined based on the historical volatility of the Company’s common shares over the expected option term.}

⁽³⁾

^{Risk-free interest rate was based upon treasury instrument whose term was half year longer than the expected option term.}

⁽⁴⁾

^{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 April 1, 2022:

	Shares (In thousands)			Weighted Average Grant Date Fair Value
Unvested at December 31, 2021		292		$	115.42
Granted		81		$	139.46
Vested		(95	)	$	108.01
Forfeited		(1	)	$	127.39
Unvested at April 1, 2022		277		$	124.92
Expected to vest as of April 1, 2022		254

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 April 1, 2022:

	Shares (In thousands)			Weighted Average Grant Date Fair Value
Unvested at December 31, 2021		162		$	122.26
Granted		102		$	158.59
Vested		(41	)	$	108.58
Forfeited		(1	)	$	173.77
Unvested at April 1, 2022		222		$	144.25
Expected to vest as of April 1, 2022		213

Stock Options Issued and Outstanding

The table below summarizes activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the three months ended April 1, 2022:



	Shares (In thousands)		Weighted Average Exercise Price
Outstanding as of December 31, 2021		60	$	14.13
Granted		40	$	135.86
Exercised		—	$	—
Forfeited or expired		—	$	—
Outstanding as of April 1, 2022		100	$	62.77
Exercisable as of April 1, 2022		60
Expected to vest as of April 1, 2022		40