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Stock-Based Compensation
12 Months Ended
Dec. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
12.
Stock-Based Compensation
The Company has awards and options outstanding under three stock incentive plans: the 2005 Stock Option and Incentive Plan (the "2005 Plan"), the 2015 Stock Option and Incentive Plan (the "2015 Plan") and the 2018 Stock Option and Incentive Plan (the "2018 Plan" and together with the 2005 Plan and the 2015 Plan, the "Plans"). The 2018 Plan is the only one of the three plans under which new awards may currently be granted. Under the 2018 Plan, which became effective on May 23, 2018, 1,750,000 shares were initially reserved for issuance in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock awards, cash-based awards, and dividend equivalent rights. On May 21, 2020, the stockholders approved an amendment to the 2018 Plan to increase the number of aggregate shares authorized for issuance to 2,495,000 shares, an increase of 745,000 shares. On May 27, 2022, the stockholders approved an amendment to the 2018 Plan to increase the number of aggregate shares authorized for issuance to 3,395,000 shares, an increase of 900,000 shares. Stock awards returned to the Plans, with the exception of those issued under the 2005 Plan, as a result of their expiration, cancellation or termination are automatically made available for issuance under the 2018 Plan. As of December 30, 2023, there were 822,528 shares available for future grant under the 2018 Plan. The Company recognized $36.1 million, $31.9 million and $21.7 million of stock-based compensation expense during the fiscal years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively.
Stock-based compensation breaks down by expense classification as follows (in thousands):
 Fiscal Year Ended
 December 30,
2023
December 31,
2022
January 1,
2022
Cost of revenue$3,160 $2,194 $1,321 
Research and development12,391 10,473 9,542 
Selling and marketing5,843 6,358 4,190 
General and administrative14,662 12,880 6,641 
Total$36,056 $31,905 $21,694 
Time-based Restricted Stock Units
Time-based restricted stock units entitle the holder to a specific number of shares of common stock upon vesting, typically over a three or four year period. As of December 30, 2023, the unamortized compensation costs associated with restricted stock units was $55.3 million with a weighted-average remaining recognition period of 1.96 years.
The following table summarizes the time-based restricted stock unit activity for fiscal 2023, 2022 and 2021:
Number of
Shares Underlying
Restricted Stock
Weighted Average
Grant Date Fair
Value
Outstanding at January 2, 2021
894,033 $68.97 
Granted523,496 88.73 
Vested(314,427)71.36 
Forfeited(99,886)75.82 
Outstanding at January 1, 20221,003,216 77.85 
Granted638,554 54.26 
Vested(321,443)78.10 
Forfeited(187,227)73.45 
Outstanding at December 31, 20221,133,100 65.21 
Granted1,001,090 42.10 
Vested(567,696)61.99 
Forfeited(212,895)61.24 
Outstanding at December 30, 20231,353,599 $50.09 
The aggregate intrinsic value of outstanding time-based restricted stock units at December 30, 2023 was $52.4 million based on the Company's closing stock price on December 30, 2023 of $38.70, with a weighted average remaining contractual term of 1.01 years.
Performance-Based Restricted Stock Units
The Company grants performance-based restricted stock units ("PSUs") to certain of its employees that vest on the satisfaction of service and performance or market conditions. The performance conditions are based on certain financial performance targets at the end of a three year performance period, and therefore awards generally cliff vest at the end of a three year performance period. The market conditions are based on the relative TSRs compared to a certain index for each performance period, and therefore awards vest at the end of each performance period. The number of shares actually vested may range from 0% to 200% of the target number of PSUs granted based on the actual achievement of the conditions.
The unamortized fair value as of December 30, 2023 associated with performance based restricted stock units was $1.4 million with a weighted-average remaining recognition period of 0.51 years.
The following table summarizes the performance-based restricted stock unit activity for fiscal 2023, 2022 and 2021:
Number of
Shares Underlying
PSU
Weighted Average
Grant Date Fair
Value
Outstanding at January 2, 2021229,652 $66.41 
Granted134,127 94.74 
Vested(55,503)68.41 
Forfeited(23,154)71.68 
Outstanding at January 1, 2022285,122 78.92 
Granted153,676 57.94 
Vested— — 
Forfeited(71,616)97.31 
Outstanding at December 31, 2022367,182 66.55 
Granted— — 
Vested(32,669)49.30 
Forfeited(180,620)54.07 
Outstanding at December 30, 2023153,893 $84.87 
The aggregate intrinsic value of outstanding PSUs was $6.0 million based on the Company's closing stock price on December 30, 2023 of $38.70 with a weighted average remaining contractual term of 0.51 years.