Leslie's, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Equity-Based Compensation (Tables)

Equity-Based Compensation (Tables)

12 Months Ended

Oct. 01, 2022

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Summary of Weighted Average Assumptions Used for Incentive Awards/ Stock Options

The following table summarizes the weighted average assumptions used for Stock Options granted during the year ended October 2, 2021:



Expected volatility	28.9	%
Risk-free interest rate	0.7	%
Dividend yield	0.0	%
Expected term (in years)	6.3

Summary of Incentive Awards/ Stock Options Activity

The following tables summarize our Stock Option activity under the Plan for the fiscal years ended (in thousands, except per share amounts):


	Year Ended
	October 1, 2022					October 2, 2021
	Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price
Outstanding, Beginning		4,877		$	18.22		—		$	—
Granted		—			—		5,372			18.43
Exercised		(81	)		17.00		—			—
Forfeited/Expired		(1,016	)		18.22		(495	)		17.26
Balance, Ending		3,780		$	18.24		4,877		$	18.22

Vested and exercisable as of year-end		1,349		$	18.28		—		$	—


	As of October 1, 2022
Aggregate intrinsic value of Stock Options outstanding	$	—
Unamortized value of unvested Stock Options	$	9,477
Weighted average years that expense is expected to be recognized		1.8
Weighted average remaining contractual years outstanding		8.6

Summary of RSU Activity under Plan

The following table summarizes our RSU activity under the Plan for the fiscal years ended (in thousands, except per share amounts):


	Year Ended
	October 1, 2022					October 2, 2021
	Number of RSUs			Weighted Average Grant Date Fair Value		Number of RSUs			Weighted Average Grant Date Fair Value
Outstanding, Beginning		3,135		$	6.90		—		$	—
Converted from Incentive Awards(1)		—			—		6,038			1.43
Granted		631			18.57		725			25.95
Vested(2)		(1,079	)		5.99		(3,321	)		1.10
Cancelled/forfeited		(390	)		9.82		(307	)		4.64
Balance, Ending		2,297		$	10.04		3,135		$	6.90

(1)

Represents approximately 4.8 million Service and Performance Incentive Awards converted to RSUs in connection with the IPO and adoption of the Plan during fiscal 2021.

(2)

RSUs that vested during the year ended October 2, 2021 includes RSUs that were issued in connection with the IPO that vest only upon achievement of volume weighted average price (“VWAP”) targets established by the compensation committee of the board of directors (Performance RSUs). The VWAP target was measured over rolling 20-day trading periods commencing on the six-month anniversary of the consummation of the IPO.


	As of October 1, 2022
Unamortized value of unvested RSUs	$	19,622
Weighted average period (years) expense is expected to be recognized		2.8

Incentive Awards

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Summary of Weighted Average Assumptions Used for Incentive Awards/ Stock Options

The following table summarizes the assumptions and fair value used for Incentive Awards for the fiscal year ended October 3, 2020:



Expected volatility	23.5	%
Risk-free interest rate	1.4	%
Dividend yield	0.0	%
Expected term (in years)	4.0

Summary of Incentive Awards/ Stock Options Activity

The following table summarizes our Incentive Awards activity for the fiscal year ended (in thousands, except per share amounts):


	October 2, 2021				October 3, 2020
	Number of Awards			Weighted Average Exercise Price	Number of Awards			Weighted Average Exercise Price
Outstanding, Beginning		13,267				10,263
Cancelled upon IPO		(8,450	)			—
Converted to RSUs		(4,817	)			—
Granted		—				5,980		$	1.87
Cancelled/forfeited		—				(2,976	)
Balance, Ending		—				13,267