14. Stock Options and Stock Awards

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The Company recognizes share-based compensation expense over the requisite service period of the award, net of an estimate for the impact of forfeitures. Operating results for the thirty-nine week periods ended November 27, 2021 and November 28, 2020 include $8,820 and $8,677, respectively, of compensation costs related to the Company’s stock-based compensation arrangements.

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The Company provides certain of its associates with performance based incentive plans under which the associates will receive a certain number of shares of the Company’s common stock or cash based on the Company meeting certain financial and performance goals. If such goals are not met, no stock-based compensation expense is recognized and any recognized stock-based compensation expense is reversed. During the thirty-nine week periods ended November 27, 2021 and November 28, 2020, the Company incurred expense of $573 and $1,170 related to these performance based incentive plans, respectively, which is recorded as a component of stock-based compensation expense.

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The total number and type of newly awarded grants and the related weighted average fair value for the thirty-nine week periods ended November 27, 2021 and November 28, 2020 are as follows:

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Typically, stock options granted vest, and are subsequently exercisable in equal annual installments over a four-year period for employees. Restricted stock awards typically vest in equal annual installments over a three-year period.

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The Company calculates the fair value of stock options using the Black-Scholes-Merton option pricing model.

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As of November 27, 2021, the total unrecognized pre-tax compensation costs related to unvested stock options and restricted stock awards granted, net of estimated forfeitures and the weighted average period of cost amortization are as follows:

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