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Share-Based Compensation | 9 Months Ended
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Oct. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation | Share-Based Compensation The Company has share-based compensation and employee stock purchase plans under which shares of the Company’s Class A common stock are available for future grants and sales. Pre-tax share-based compensation expense recognized in the statements of operations was $21 million and $26 million for the nine month periods ended October 1, 2016 and October 3, 2015, respectively. Tax related benefits of $7 million and $9 million were also recognized for the nine month periods ended October 1, 2016 and October 3, 2015, respectively. The fair value of share-based compensation is estimated on the date of grant using a binomial model. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of the Company’s stock price over its entire stock history. Stock option grants in the table below include both stock options, all of which were non-qualified, and stock appreciation rights ("SARs") that will be settled in the Class A common stock or cash. Restricted stock grants are valued at the market closing price on the grant date. The following table shows the weighted-average assumptions used for grants of SARs as well as the fair value based on those assumptions:
| Nine Months Ended
| October 1, 2016 |  | October 3, 2015
Expected dividend yield | 0% |  | 0%
Forfeiture rate | 9.01% |  | 10.24%
Volatility | 43.14% |  | 33.98%
Risk free interest rate | 1.29% |  | 1.53%
Range of interest rates | 0.25% - 1.75% |  |  | 0.02% - 2.14% |
Expected weighted-average life | 5.33 years |  | 5.32 years
Fair value of SARs granted (in millions) | $ | 12 |  |  | $ | 12 |
Weighted-average grant date fair value of SARs granted (per underlying share) | $ | 20.06 |  |  | $ | 35.25 |
The following table summarizes the stock awards activity:
| Nine Months Ended October 1, 2016
Stock Awards | Shares |  | Weighted- Average Exercise Price
Outstanding at beginning of period | 1,397,611 |  |  | $ | 56.68 |
Granted | 618,866 |  |  | 51.83 |
Exercised | (58,384 | ) |  | 39.71 |
Forfeited | (52,858 | ) |  | 65.26 |
Expired | (5,577 | ) |  | 81.27 |
Outstanding at end of period | 1,899,658 |  |  | 55.22 |
Exercisable at end of period | 933,358 |  |  | 43.92 |
Intrinsic value of exercised SARs (in millions) | $ | 2 |  |  |
The following table summarizes information about stock awards outstanding at October 1, 2016:
| Outstanding |  | Exercisable
Aggregate intrinsic value (in millions) | $ | 26 |  |  | $ | 20 |
Weighted-average remaining contractual term | 7.1 years |  | 5.2 years
There were no stock options issued during the nine months ended October 1, 2016. A summary of the status of the Company's restricted stock awards, restricted stock units, performance stock awards and performance stock units activity was as follows:
| Nine Months Ended October 1, 2016
Restricted Stock Awards and Units | Shares |  | Weighted-Average Grant Date Fair Value
Outstanding at beginning of period | 605,193 |  |  | $ | 77.82 |
Granted |  |  |  |  |
Restricted Stock Awards | 381,278 |  |  | 51.60 |
Restricted Stock Units | 31,194 |  |  | 51.42 |
Total shares granted | 412,472 |  |  |  |
Released | (234,402 | ) |  | 56.46 |
Forfeited | (28,112 | ) |  | 79.34 |
Outstanding at end of period | 755,151 |  |  | 70.25 |
| Nine Months Ended October 1, 2016
Performance Stock Awards and Units | Shares |  | Weighted-Average Grant Date Fair Value
Outstanding at beginning of period | 341,703 |  |  | $ | 73.30 |
Granted |  |  |  |
Performance Stock Awards | 178,378 |  |  | 50.34 |
Performance Stock Units | — |  |  |
Total shares granted | 178,378 |  |  |
Released | (111,325 | ) |  | 46.58 |
Forfeited | (6,819 | ) |  | 74.22 |
Outstanding at end of period | 401,937 |  |  | 70.44 |
As of October 1, 2016, total unearned compensation costs related to the Company’s share-based compensation plans was $54 million which will be amortized over the weighted average remaining service period of 2.6 years.

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- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 + Details
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