XML 21 R12.htm IDEA: XBRL DOCUMENT v3.22.2
Stock-based Compensation
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation (“ASC 718”). In accordance with ASC 718, the Company measures compensation cost for all stock-based awards at fair value on the date of grant and recognizes compensation expense, net of forfeitures, using the straight-line method over the requisite service period of awards expected to vest, which for each of the awards is the service vesting period. Stock-based compensation expense for the twenty-six weeks ended June 30, 2022 and July 1, 2021 was $10.9 million and $10.1 million, respectively, and was included in general and administrative expenses within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income.
Stock Options
The table below summarizes stock option activity for the twenty-six weeks ended June 30, 2022.
OptionsWeighted Average Exercise Price
Outstanding at December 31, 20212,503,654 $26.81 
Exercised(240,735)21.50 
Forfeited or expired(34,211)52.88 
Outstanding at June 30, 2022
2,228,708 $26.99 
Vested and exercisable at June 30, 2022
1,831,270 $22.01 
Restricted Stock Units
During the twenty-six weeks ended June 30, 2022, the Company granted service-based restricted stock units (“RSUs”) to certain employees, executive officers, and non-employee directors and performance-based restricted stock units (“PSUs”) to certain executive officers that represent an unfunded, unsecured right to receive a share of the Company’s Class A common stock upon vesting. The RSUs granted during the period have an aggregate grant-date fair value of $21.4 million and vest in three ratable annual installments on each of the first three anniversaries of the grant date, subject to the grantee’s continued service through the applicable vesting date. The PSUs granted during the period have an aggregate grant-date fair value of $3.5 million and cliff vest after a three-year period based on the achievement of specific targets for adjusted EBIT (earnings before interest and taxes) growth and return on invested capital, subject to the grantee’s continued service through the applicable vesting date. Based on the extent to which the performance goals are achieved, vested shares may range from 0% to 200% of the target award amount, and the Company assesses the probability of achieving these performance goals on a quarterly basis. The fair values of the service-based and performance-based restricted stock units were determined based on the closing price of the Company’s Class A common stock on the date of grant.
The following table summarizes restricted stock unit activity during the twenty-six weeks ended June 30, 2022:
Restricted Stock Units
Service-basedPerformance-basedTotal Restricted Stock Units
Unvested at December 31, 2021214,778 — 214,778 
Granted230,208 36,566 266,774 
Vested(52,351)— (52,351)
Forfeited(9,718)— (9,718)
Unvested at June 30, 2022382,917 36,566 419,483 
Restricted Stock Awards
The following table summarizes restricted stock award activity during the twenty-six weeks ended June 30, 2022:
Restricted Stock Awards
Service-basedPerformance-basedTotal Stock Return (TSR)Total Restricted Stock Awards
Unvested at December 31, 2021144,725 160,315 104,456 409,496 
Vested(24,656)— — (24,656)
Forfeited(16,195)(25,997)(16,939)(59,131)
Unvested at June 30, 2022103,874 134,318 87,517 325,709