Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity and Share-Based Compensation

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Stockholders' Equity and Share-Based Compensation
 9 Months Ended
Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stockholders' Equity and Share-Based Compensation
Stockholders’ Equity and Share-Based Compensation
Non-Controlling Interest
Non-controlling interests represent equity interests in consolidated subsidiaries that are not attributable, either directly or indirectly, to the Company (i.e., minority interests). Non-controlling interests include the minority equity holders' proportionate share of the equity of AutoMD. Ownership interests in subsidiaries held by parties other than the Company are presented as non-controlling interests within stockholders' equity, separately from the equity held by the Company. Revenues, expenses, net income (loss) and other comprehensive loss are reported in the consolidated financial statements at the consolidated amounts, which includes amounts allocated to both the Company's interest and the non-controlling interests in AutoMD. Net loss and other comprehensive loss is then attributed to the Company's interest and the non-controlling interests. Net income (loss) to non-controlling interests is deducted from net income (loss) in the consolidated statements of comprehensive operations to determine net loss attributable to the Company's common stockholders.
The following table summarizes the Company’s stock option activity under the AutoMD 2014 Equity Incentive Plan (the "AMD Plan") for the thirty-nine weeks ended October 3, 2015, and details regarding the options outstanding and exercisable at October 3, 2015:

 
Shares
(in thousands)
 
Weighted
Average
Exercise Price
 
Weighted Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic Value
Options outstanding, January 3, 2015
180

 
$1.00
 
 
 
 
Granted
1,060

 
$1.00
 
 
 
 
Exercised
—

 
—

 
 
 
 
Expired
—

 
—

 
 
 
 
Forfeited
—

 
—

 
 
 
 
Options outstanding, October 3, 2015
1,240

 
$1.00
 
9.33
 
$
—

Vested and expected to vest at October 3, 2015
916

 
$1.00
 
9.33
 
$
—

Options exercisable, October 3, 2015
—

 
—

 
0.00
 
$
—

At October 3, 2015, 710 shares were available for future grants under the AMD Plan.
The weighted-average fair value of options granted during the thirty-nine weeks ended October 3, 2015 and September 27, 2014 was $0.54 and $0, respectively. The intrinsic value of stock options at the date of exercise is the difference between the fair value of the stock at the date of the balance sheet and the exercise price. During the thirty-nine weeks ended October 3, 2015 and September 27, 2014, the options had $0 intrinsic value as none were exercisable. The Company had $414 of unrecognized share-based compensation expense related to stock options outstanding as of October 3, 2015, which expense is expected to be recognized over a weighted-average period of 3.33 years.
Options exercised under all share-based compensation plans are granted net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. For those employees who elect not to receive shares net of the minimum statutory withholding requirements, the appropriate taxes are paid directly by the employee. During the thirty-nine weeks ended October 3, 2015, we withheld 27 shares to satisfy $80 of employees' tax obligations and 64 shares related to the net settlement of the stock options.
USAP Options and Restricted Stock Units
The Company had the following common stock option activity during the thirty-nine weeks ended October 3, 2015:
•Granted options to purchase 1,230 common shares.
•Forfeitures of 250 options to purchase common shares.

The following table summarizes the Company’s restricted stock unit ("RSU") activity for the thirty-nine weeks ended October 3, 2015, and details regarding the awards outstanding and exercisable at October 3, 2015 (in thousands):
 
Shares
 
Weighted
Average
Exercise Price
 
Weighted Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic Value
Awards outstanding, January 3, 2015
880

 
$
—

 
 
 
 
Awarded
435

 
$
—

 
 
 
 
Vested
(398
)
 
$
—

 
 
 
 
Forfeited
(113
)
 
$
—

 
 
 
 
Awards outstanding, October 3, 2015
804

 
$
—

 
0.34
 
$
1,617

Vested and expected to vest at October 3, 2015
772

 
$
—

 
0.34
 
$
1,552

During the thirty-nine weeks ended October 3, 2015, 398 RSUs vested, of which 221 were time-based and 177 were performance-based. For the majority of RSUs awarded, the number of shares issued on the date the RSUs vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. For those employees who elect not to receive shares net of the minimum statutory withholding requirements, the appropriate taxes are paid directly by the employee. During the thirty-nine weeks ended October 3, 2015, we withheld 151 shares to satisfy $358 of employees' tax obligations. Although shares withheld are not issued, they are treated as a common stock repurchase in our consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting.

For the thirteen and thirty-nine weeks ended October 3, 2015, we recorded compensation expense of $357 and $915, respectively. As of October 3, 2015, there was unrecognized compensation expense of $485 related to unvested RSUs based on awards that are expected to vest. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 0.34 years.