|9 Months Ended|
Sep. 28, 2019
|Share Based Compensation [Abstract]|
12. 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 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 a three-year period. Awards with performance-based vesting requirements cliff vest after a three-year performance cycle and only after the achievement of certain performance criteria over that cycle.
Compensation expense recognized for restricted stock and RSUs totaled $2,783 and $2,101, respectively, for the nine months ended September 28, 2019, and September 29, 2018.
The following table summarizes restricted stock and RSU activity for the nine months ended September 28, 2019:
(1) As of September 28, 2019, approximately 35,000 unvested performance-based RSUs are included in the table above. The number of shares ultimately issued for the performance-based units may vary from 0% to 150% of their target amount based on the achievement of defined performance targets.
The Company had $6,287 of total unrecognized compensation cost related to the restricted stock and RSU awards as of September 28, 2019. That cost is expected to be recognized over a weighted average period of 1.9 years.
Employee Stock Purchase Plans
The Company maintains an Employee Stock Purchase Plan (“ESPP”) in which the U.S. employees of Helios, Sun Hydraulics and Enovation Controls 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, 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 37,217 shares at a weighted average price of $33.65, and 27,454 shares at a weighted average price of $42.51, under the ESPP and U.K. plans during the nine months ended September 28, 2019, and September 29, 2018, respectively. The Company recognized $398 and $259 of compensation expense during the nine months ended September 28, 2019, and September 29, 2018, 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 18,875 and 18,375 shares for the nine months ended September 28, 2019 and September 29, 2018, respectively. The Company recognized director stock compensation expense of $856 and $999 for the nine months ended September 28, 2019 and September 29, 2018, respectively.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef