STOCK-BASED COMPENSATION (Note)

12 Months Ended

Dec. 26, 2021

Share-based Payment Arrangement [Abstract]

We record stock-based compensation expense for restricted stock awards, restricted stock units, performance share units (collectively, “stock-based awards”), and shares purchased under an employee stock purchase plan (“ESPP”).

Our 2016 Omnibus Incentive Plan (“Incentive Plan”), effective May 11, 2016, applies to directors, officers, employees and consultants of the Company and permits the granting of nonqualified and incentive stock options, restricted stock awards, performance share units, restricted stock units and stock appreciation rights. Upon adoption, the Incentive Plan provided for the issuance or delivery of up to 1.5 million shares of our common stock. Effective May 9, 2018, an additional 1.8 million shares were authorized under the Incentive Plan.

Stock-based awards

Under the Incentive Plan, stock-based awards are granted to the Board, executive officers and key employees. Stock-based awards granted to executive officers and key employees generally vest annually over three or four years. Beginning in fiscal 2020, stock-based awards granted to members of our Board vest over an eight month period. Prior to fiscal 2020, stock-based awards granted to members of our Board vested immediately. Receipt of the vested shares may be deferred until after a director leaves the Board. Compensation expense related to these grants is calculated based on the grant-date fair value. We recognize compensation expense on a straight-line basis over the vesting period, net of forfeitures.

Beginning in fiscal 2020, performance share units are only granted to certain executive officers. Prior to fiscal 2020, performance share units were also granted to certain employees. Vesting of performance share units is contingent upon the achievement of return on equity, profitability, or individual performance goals at the end of each three-year performance period. Each performance share unit is equivalent to one share of common stock. Compensation expense for these grants is calculated based on the grant-date market value of our stock and is recognized ratably over the performance period only for the performance share units expected to vest. Our estimate of the performance units expected to vest is reviewed and adjusted as appropriate each quarter.

Stock-based award activity for the fiscal year ended December 26, 2021, was as follows:


(shares in thousands)	Shares	Weighted-average grant-date fair value
Non-vested at beginning of period	1,523	$	22.77
Granted	953	$	20.21
Vested	(579)	$	22.43
Forfeited	(184)	$	19.91
Non-vested at the end of the period	1,713	$	21.71

The following table summarizes the weighted-average grant-date fair value per share for stock-based awards granted during fiscal 2021, 2020 and 2019:


	2021	2020	2019
Weighted-average grant-date fair value	$20.21	$17.06	$23.05

As of December 26, 2021, total unrecognized stock-based compensation expense was approximately $17.5 million, which is estimated to be recognized over a weighted average remaining period of 1.7 years. The total fair value of stock-based awards that vested during fiscal 2021, 2020 and 2019 was $20.6 million, $7.0 million and $8.7 million, respectively.

Employee Stock Purchase Plan

Our ESPP reserves 1.0 million shares of common stock for purchase. The plan allows eligible employees to contribute up to 10% of their earnings toward the monthly purchase of the company’s common stock. The employee’s purchase price is 85% of the lesser of the company’s common stock price on either the first day or the last day of each calendar month. We consider our ESPP to be a component of stock-based compensation and accordingly we recognize compensation expense over the requisite service period for stock purchases made under the plan. The requisite service period begins on the enrollment date and ends on the purchase date, the duration of which is one month.

The following table summarizes transactions under our ESPP during fiscal 2021, 2020 and 2019:


(shares in thousands)	2021		2020		2019
Shares issued	44		68		73
Average price per share	$	19.77	$	13.46	$	18.31

Stock-based compensation expense

Total stock-based compensation expense for fiscal 2021, 2020 and 2019, which is included in SG&A expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), was $13.9 million, $9.1 million and $9.8 million, respectively. The related tax benefit was $2.9 million, $1.9 million and $2.1 million for fiscal 2021, 2020 and 2019, respectively.