Stockholders' Equity and Stock Compensation Plans

3 Months Ended

Dec. 29, 2019

Stockholders' Equity Note [Abstract]

Stockholders' Equity and Stock Compensation Plans

Stockholders’ Equity and Stock Compensation Plans

We recognize the fair value of our stock-based awards as compensation expense on a straight-line basis over the requisite service period in which the award vests. Stock-based compensation expense for the first quarters of fiscal 2020 and 2019 was $4.5 million and $4.5 million, respectively. Most of these amounts were included in SG&A in our consolidated statements of income. In the first quarter of fiscal 2020, we awarded 74,011 performance share units (“PSUs”) to our non-employee directors and executive officers at a fair value of $102.13 per share on the award date. All of the PSUs are performance-based and vest, if at all, after the conclusion of the three-year performance period. The number of PSUs that ultimately vest is based on 50% on the growth in our diluted earnings per share and 50% on our relative total shareholder return over the vesting period. Additionally, we awarded 160,775 restricted stock units (“RSUs”) to our non-employee directors, executive officers and employees at the fair value of $83.95 per share on the award date. All executive officer and employee RSUs have time-based vesting over a four-year period, and the non-employee director RSUs vest after one year.