At a meeting of the Board of Directors on July 24, 2018, the Company's Board of Directors approved the extinguishment of the existing 3.0 million share repurchase program that was approved in November 2013 and replaced it with an authorization to purchase up to $250.0 million of shares. At a meeting of the Board of Directors on October 25, 2019, the July 2018 repurchase authorization was extinguished and replaced with an authorization to purchase up to $250.0 million of shares. For the six months ended June 27, 2020, the Company repurchased and retired 315,072 shares of its common stock at an average cost of $79.38 per share for a total cost of $25.0 million. For the six months ended June 29, 2019, the Company repurchased and retired 731,745 shares of its common stock at an average cost of $76.42 for a total cost of $55.9 million under the July 2018 program.

As of June 27, 2020, there was approximately $210.0 million in common stock available for repurchase under the October 2019 program. The Company suspended the share repurchase program during the first quarter of 2020. The existing share repurchase program remains authorized by the Company's Board of Directors and the Company may resume share repurchases at any time.

The majority of the Company’s annual share-based incentive awards had historically been granted in the second fiscal quarter. Beginning in fiscal 2020, the Company moved its granting of share-based incentive awards to the first fiscal quarter.

The Company recognized approximately $2.8 million and $3.1 million in share-based compensation expense for the three months ended June 27, 2020 and June 29, 2019, respectively. Share-based compensation expense was $5.5 million and $7.4 million for the six months ended June 27, 2020 and June 29, 2019, respectively. The total income tax benefit recognized in the Condensed Consolidated Statements of Income for share-based compensation expense was $0.2 million and $0.6 million for the three months ended June 27, 2020 and June 29, 2019, respectively. The total income tax benefit recognized in the Condensed Consolidated Statements of Income for share-based compensation expense was $0.4 million and $1.5 million for the six months ended June 27, 2020 and June 29, 2019, respectively. The Company recognizes compensation expense on grants of share-based compensation awards on a straight-line basis over the vesting period of each award. As of June 27, 2020, total unrecognized compensation cost related to share-based compensation awards was approximately $24.0 million, net of estimated forfeitures, which the Company expects to recognize over a weighted average period of approximately 2.0 years.

The Company uses stock settled stock appreciation rights (“SARs”) as a form of share-based incentive awards. SARs are the right to receive stock in an amount equal to the appreciation in value of a share of stock over the base price per share. Shares granted prior to fiscal 2020 generally vest over five years on the anniversary date while shares granted in fiscal 2020 generally vest over three years on the anniversary date of the grant date. Generally all grants expire 10 years from the grant date. All grants are made at prices equal to the fair market value of the stock on the grant date. For the six months ended June 27, 2020 and June 29, 2019, expired and canceled shares were immaterial.



	June 27, 2020		June 29, 2019
Total Intrinsic Value of Share-Based Incentive Awards Exercised	$	3.1	$	3.9
Cash Received from Stock Option Exercises	0.2		—
Income Tax Benefit from the Exercise of SARs	0.4		0.2
Total Fair Value of Share-Based Incentive Awards Vested	1.8		5.3

The average risk-free interest rate is based on the US Treasury security rate as of the grant date. The expected dividend yield is based on the projected annual dividend as a percentage of the estimated market value of the Company's common stock as of the grant date. The Company estimated the expected volatility using a weighted average of daily historical volatility of the Company's stock price over the expected term of the award. The Company estimated the expected term using historical data.



Number of Shares Under SARs	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding as of December 28, 2019	817,790		$	73.34	6.0	$	9.9
Granted	181,177		88.25
Exercised	(189,749	)	69.29
Forfeited	(74,355	)	76.55
Expired	(3,058	)	66.98
Outstanding as of June 27, 2020	731,805		$	77.78	7.0	$	5.5
Exercisable as of June 27, 2020	306,295		$	70.78	4.4	$	4.1

Restricted stock awards ("RSA") and restricted stock units ("RSU") consist of shares or the rights to shares of the Company's stock. The awards are restricted such that they are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer. As defined in the individual grant agreements, acceleration of vesting may occur under a change in control, death or disability.



	Shares		Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (Years)
Unvested RSAs as of December 28, 2019	15,571		$	80.41	0.4
Granted	16,280		70.05
Vested	(14,176	)	80.68
Unvested RSAs as of June 27, 2020	17,675		$	70.65	0.8

RSAs vest on the first anniversary of the grant date, provided the holder of the shares is continuously employed by or in the service of the Company until the vesting date. Compensation expense recognized related to the RSAs was $0.6 million for the six months ended June 27, 2020.



	Shares		Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (Years)
Unvested RSUs as of December 28, 2019	175,025		$	78.19	1.9
Granted	66,446		85.65
Vested	(48,401	)	80.24
Forfeited	(20,685	)	77.98
Unvested RSUs as of June 27, 2020	172,385		$	80.52	2.1

RSUs granted prior to fiscal 2020 vest on the third anniversary of the grant date while RSUs granted in fiscal 2020 vest one third each year on the anniversary of the grant date, provided the holder of the RSUs is continuously employed by the Company until the vesting date. Compensation expense recognized related to the RSUs was $2.4 million for the six months ended June 27, 2020.

Performance share units ("PSU") consist of shares or the rights to shares of the Company's stock which are awarded to employees of the Company. These shares are payable upon the determination that the Company achieved certain established performance targets and can range from 0% to 200% of the targeted payout based on the actual results. PSUs have a performance period of 3 years and vest 3 years from the grant date. The PSUs have performance criteria based on a return on invested capital metric or they have performance criteria using returns relative to the Company's peer group. As set forth in the individual award agreements, acceleration of vesting may occur under a change in control, death or disability. There are no voting rights associated with PSUs until vesting occurs and a share of stock is issued. Some of the PSU awards are valued using a Monte Carlo simulation method as of the grant date while others are valued using the closing market price as of the grant date depending on the performance criteria for the award.



	Shares		Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (Years)
Unvested PSUs as of December 28, 2019	90,565		$	86.35	1.9
Granted	42,677		99.74
Vested	(7,430	)	95.30
Forfeited	(27,014	)	86.85
Unvested PSUs as of June 27, 2020	98,798		$	91.32	2.2

Compensation expense for awards granted is recognized based on the grant issuance value or the expected payout ratio depending upon the performance criterion for the award, net of estimated forfeitures. Compensation expense recognized related to PSUs was $1.0 million for the six months ended June 27, 2020. Total unrecognized compensation expense for all PSUs granted as of June 27, 2020 is estimated to be $6.2 million which is expected to be recognized as a charge to earnings over a weighted average period of 2.2 years.