|6 Months Ended|
Jun. 27, 2020
|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 (“RSU”) 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 $2,072 and $1,859, respectively, for the six months ended June 27, 2020, and June 29, 2019.
The following table summarizes restricted stock and RSU activity for the six months ended June 27, 2020:
(1) Includes 61,032 unvested performance-based RSUs.
The Company had $6,941 of total unrecognized compensation cost related to the restricted stock and RSU awards as of June 27, 2020. That cost is expected to be recognized over a weighted average period of 2.0 years.
During the first six months of 2020, the Company granted 18,121 stock options to its officers. The exercise price of $39.75 per share is equal to the market price of Helios stock on the grant date. The options vest ratably over a three-year period and have a 10-year expiration. The weighted average grant date fair value of the options is $12.81 per share and was estimated using a Black Scholes valuation model. At June 27, 2020, the Company had $127 of unrecognized compensation cost related to the options which is expected to be recognized over a weighted average period of 2.7 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 23,364 shares at a weighted average price of $30.94, and 25,481 shares at a weighted average price of $33.09, under the ESPP and UK plans during the six months ended June 27, 2020, and June 29, 2019, respectively. The Company recognized $155 and $329 of compensation expense during the six months ended June 27, 2020, and June 29, 2019, 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 5,500 and 12,500 shares for the six months ended June 27, 2020 and June 29, 2019, respectively. The Company recognized director stock compensation expense of $235 and $660 for the six months ended June 27, 2020 and June 29, 2019, respectively.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef