The Company recorded stock-based compensation expense, net of forfeitures, of approximately $6.0 million and $12.0 million in the three and six months ended June 28, 2026, respectively, and $6.1 million and $11.3 million in the three and six months ended June 29, 2025, respectively.

The Board approved various share grants under the Company’s 2009 Omnibus Incentive Plan for the six months ended June 28, 2026 totaling 183,643 shares in the aggregate at an average fair value of $127.20 per share at grant date for a total fair value at grant date of $23.4 million.

On February 25, 2025, the Board approved the grant of 329,850 SARs divided into four tranches at exercise prices of $92.72, $110.76, $132.31 and $158.05 per share. The SARs vest pro-ratably over four years from the grant date and have nine-year contractual terms. The SARs are to be settled in shares of common stock or, at the sole discretion of the Board, in cash. As of June 28, 2026, the total remaining unrecognized cost was $3.5 million which will be expensed ratably over the four-year vesting period.

On February 25, 2025, the Board approved the grant of 329,850 stock options at an exercise price per share of $92.72. The stock options vest pro-rata over four years from the grant date and have nine-year contractual terms. As of June 28, 2026, the total remaining unrecognized cost was $4.9 million which will be expensed ratably over the four-year vesting period.

The Company estimates the fair value of the stock options and SARs awards as of the grant date by applying the Black-Scholes option-pricing model. The following are the assumptions that were used in calculating the fair value of stock options and SARs granted in February 2025: