Stock-based compensation

9 Months Ended

Sep. 26, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-based compensation

Stock-based compensation

The Company recognizes compensation expense for all share-based payments granted based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10. Compensation expense is recognized on a straight-line basis over the options’ or other awards’ estimated lives for fixed awards with ratable vesting provisions.

The Company granted 4 restricted stock units ("RSUs") at a weighted average grant-date fair value of $94.25 per unit for the three months ended September 26, 2020. The Company granted 193 restricted stock units ("RSUs") at a weighted average grant-date fair value of $120.35 per unit for the nine months ended September 26, 2020. The Company granted no RSUs for the three months ended September 28, 2019. The Company granted 187 RSUs at a weighted average grant-date fair value of $137.30 per unit for the nine months ended September 28, 2019. The Company recognized stock-based compensation costs related to the issuance of RSUs of $4,883 ($3,614 net of taxes) and $5,651 ($4,182 net of taxes) for the three months ended September 26, 2020 and September 28, 2019, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. The Company recognized stock-based compensation costs related to the issuance of RSUs of $14,559 ($10,773 net of taxes) and $17,228 ($12,749 net of taxes) for the nine months ended September 26, 2020 and September 28, 2019, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $22,977 as of September 26, 2020, and will be recognized as expense over a weighted-average period of approximately 1.83 years. The Company did not recognize any stock-based compensation costs related to stock options for the nine months ended September 26, 2020 and September 28, 2019, respectively.