Stock-Based Compensation |
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Oct. 03, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | Note 16. Stock-Based Compensation The Company's stock-based compensation includes a combination of time-based restricted stock awards and performance-based awards. Restricted stock awards are granted without an exercise price and are converted to shares immediately upon vesting. When converted into shares upon vesting, shares equivalent in value to the minimum withholding taxes liability on the vested shares are withheld by the Company for the payment of such taxes. The Company generally estimates the fair value of stock-based awards based on the closing market price of the Company’s common stock on the grant date. In the case of performance-based awards that include a market condition, the Company estimates the fair value of the award using a combination of the closing market price of the Company’s common stock on the grant date and the Monte Carlo simulation model. For performance-based awards, shares attained over target upon vesting are reflected as awards granted during the period. Time-based restricted stock awards granted to eligible employees will generally vest in annual installments over a period of to four years subject to the employees’ continuing service to the Company and do not have an expiration date. The Company's performance-based awards may include performance conditions, market conditions, time-based service conditions or a combination thereof and are generally expected to vest in annual installments over a period of to four years. In addition, the actual number of shares awarded upon vesting of performance-based grants may vary from the target shares depending upon the achievement of the relevant performance or market-based conditions. Beginning in August 2026, the Company adopted a retirement eligibility provision applicable to future time-based restricted stock awards and performance-based awards granted to the Chief Executive Officer and certain senior executives who report directly to the Chief Executive Officer. Eligible participants who attain age 60, satisfy specified service requirements and provide at least 12 months' advance notice of retirement may continue to vest in outstanding time-based restricted stock awards after retirement in accordance with the original vesting schedule. Eligible performance-based awards remain subject to the applicable performance or market-based vesting conditions, and vesting following retirement is determined in accordance with the terms of the award agreements. As a result of this retirement eligibility provision, the Company recognizes stock-based compensation expense over a shortened requisite service period for affected awards, which accelerates the recognition of stock-based compensation expense. During the three months ended October 3, 2026 and September 27, 2025, the Company granted 0.9 million and 3.3 million time-based restricted stock awards, respectively. The aggregate grant-date fair value of time-based restricted stock awards granted during the three months ended October 3, 2026 and September 27, 2025 were estimated to be $34.3 million and $37.1 million, respectively. During the three months ended October 3, 2026 and September 27, 2025, the Company granted 0.3 million and 1.2 million performance-based awards, respectively. There were 0.6 million and less than 0.1 million performance-based shares attained over target during the three months ended October 3, 2026 and September 27, 2025, respectively. The aggregate grant-date fair value of performance-based awards granted during the three months ended October 3, 2026 and September 27, 2025 were estimated to be $13.9 million and $16.3 million, respectively. As of October 3, 2026, $95.6 million of unrecognized stock-based compensation costs remain to be amortized. The impact on the Company’s results of operations of recording stock-based compensation by function for the three months ended October 3, 2026 and September 27, 2025, is as follows (in millions):
Approximately $1.4 million and $1.1 million of stock-based compensation was capitalized to inventory as of October 3, 2026 and September 27, 2025, respectively.
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