|6 Months Ended|
Jul. 03, 2021
|Share Based Compensation [Abstract]|
10. STOCK-BASED COMPENSATION
Equity Incentive Plan
The Company’s 2019 Equity Incentive Plan and its predecessor equity plan provide for the grant of shares of restricted stock, restricted share units, stock options, stock appreciation rights, dividend or dividend equivalent rights, stock awards and other awards valued in whole or in part by reference to or otherwise based on the Company’s common stock, to officers, employees and directors of the Company.
Restricted Stock and Restricted Stock Units
The Company grants restricted shares of common stock and restricted stock units (“RSUs”) in connection with a long-term incentive plan. Awards with time-based vesting requirements primarily vest ratably over aperiod. Awards with performance-based vesting requirements cliff vest after a performance cycle and only after the achievement of certain performance criteria over that cycle. The number of shares ultimately issued for the performance-based units may vary from 0% to 200% of their target amount based on the achievement of defined performance targets.
Compensation expense recognized for restricted stock and RSUs totaled $2,796 and $2,072, respectively, for the six months ended July 3, 2021 and June 27, 2020.
The following table summarizes restricted stock and RSU activity for the six months ended July 3, 2021:
(1) Includes 107,749 unvested performance-based RSUs.
The Company had $8,555 of total unrecognized compensation cost related to the restricted stock and RSU awards as of July 3, 2021. That cost is expected to be recognized over a weighted average period of 2.0 years.
The following table summarizes stock options the Company has granted to its officers (in thousands, except per share data):
The exercise prices per share are equal to the market price of Helios stock on the respective grant dates. The options vest ratably over a three-year period and have a 10-year expiration. The grant date fair value of the options was estimated using a Black Scholes valuation model. At July 3, 2021, the Company had $400 of unrecognized compensation cost related to the options which is expected to be recognized over a weighted average period of 2.4 years.
Employee Stock Purchase Plans
The Company maintains an Employee Stock Purchase Plan (“ESPP”) in which U.S. employees are eligible to participate. Employees who choose to participate are granted an opportunity to purchase common stock at 85 percent of market value on the first or last day of the quarterly purchase period, whichever is lower. Employees in the United Kingdom (“UK”), under a separate plan, are granted an opportunity to purchase the Company’s common stock at market value, on the first or last day of the quarterly purchase period, whichever is lower, with the Company issuing one additional free share of common stock for each six shares purchased by the employee under the plan. Employees purchased 14,918 shares at a weighted average price of $53.37, and 23,364 shares at a weighted average price of $30.94, under the ESPP and UK plans during the six months ended July 3, 2021 and June 27, 2020, respectively. The Company recognized $311 and $155 of compensation expense during the six months ended July 3, 2021 and June 27, 2020, respectively.
Nonemployee Director Fees Plan
The Company’s 2012 Nonemployee Director Fees Plan compensates nonemployee directors for their board service with shares of common stock. Directors were granted 14,250 and 5,500 shares for the six months ended July 3, 2021 and June 27, 2020, respectively. The Company recognized director stock compensation expense of $1,043 and $235 for the six months ended July 3, 2021 and June 27, 2020, respectively.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef