Note 12. Stock-Based Compensation

We recognize compensation expense for awards ratably over the requisite service period of the award, which is generally three years. We recognize compensation expense based on the number of awards expected to vest using an estimated average forfeiture rate. We calculate the fair value of stock-based awards based on the closing price on the date the award was granted for those awards with only service or performance conditions. For those awards with market conditions, we have determined the grant date fair value using the Monte Carlo simulation model.

During the 39 weeks ended January 26, 2019, we granted the following awards:

•

385,171 performance share unit ("PSU") awards to employees that will vest based upon the achievement of pre-established performance goals related to absolute total shareholder returns ("TSR") determined by the Company's common stock price, DSS segment revenue and Company Adjusted EBITDA measured over a two year performance period (Fiscal 2019 - Fiscal 2020) with one additional year of time-based vesting. The number of PSU awards that will vest range from 0%-150% of the target award based on actual performance.


•	1,336,216 restricted stock units ("RSU") awards were granted to employees with a three year vesting period in accordance with the Equity Incentive Plan.


•	107,530 RSU awards and 21,506 restricted stock ("RS") awards were granted to the current Board of Directors ("BOD") members for annual compensation with a one year vesting period in accordance with the Equity Incentive Plan.

We recognized stock-based compensation expense for equity-based awards in selling and administrative expenses as follows:



	13 weeks ended						39 weeks ended
	January 26, 2019			January 27, 2018			January 26, 2019		January 27, 2018
Restricted stock expense	$	30		$	30		$	80	$	90
Restricted stock units expense ^{(a) (b)}	1,860			2,237			6,010		6,277
Performance shares expense^{(a) (c)}	(72		)	58			42		(275		)
Performance share units expense ^{(a) (c)}	60			(255		)	719		131
Stock-based compensation expense	$	1,878		$	2,070		$	6,851	$	6,223


(a)	For the 13 and 39 weeks ended January 26, 2019, the restricted stock units expense, performance shares expense and performance share units expense reflects a forfeiture adjustment for unvested shares related to the President, BNC retirement announcement.


(b)	For the 39 weeks ended January 27, 2018, the restricted stock units expense reflects a forfeiture adjustment for unvested shares related to the CEO transition (recorded in the first quarter of Fiscal 2018).


(c)	The performance shares and performance share units expense reflect catch-up adjustments for changes in the expected level of achievement of the respective grants for both Fiscal 2019 and Fiscal 2018.

For additional information related to President, BNC retirement and CEO transition, see Note 10. Supplementary Information -Restructuring and Other Charges.

Total unrecognized compensation cost related to unvested awards as of January 26, 2019 was $13,764 and is expected to be recognized over a weighted-average period of 2.0 years. Approximately $1,838 of the unrecognized compensation cost is related to performance shares and performance share units, which is subject to attaining the stated performance metrics.