v3.8.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2017
Equity [Abstract]  
Stockholders' Equity
Stockholders’ Equity

The 2015 Stock and Incentive Compensation Plan (the 2015 Stock Plan) and the New Hire Stock and Incentive Plan allow for the issuance of stock options, restricted stock units and awards, and performance stock units. As of December 31, 2017, approximately 5.3 million shares remained available for future grants under the 2015 Stock Plan. There is no set number of shares reserved for issuance under the New Hire Stock and Incentive Plan.

Restricted Stock

We issue restricted stock units (RSU) and performance stock units (PSU), which are both considered restricted stock. We grant restricted stock pursuant to the 2015 Stock Plan and satisfy such grants through the issuance of new shares. RSU are share awards that, upon vesting, will deliver to the holder shares of our common stock. RSU generally vest over a four-year period with equal vesting on anniversaries of the grant date. We issue PSU for which the number of shares issuable at the end of a three-year performance period can reach up to 150% of the shares approved in the award based on our performance relative to specified earnings per share targets and continued employment through the vesting period.

A summary of restricted stock activity and related information from December 28, 2014 through December 31, 2017 is as follows (in thousands, except per share amounts):
 
Restricted
Stock Units
(RSU)
 
Performance
Stock Units
(PSU)(1)
 
Weighted-Average Grant-
Date Fair Value per Share
 
 
 
RSU
 
PSU
Outstanding at December 28, 2014
2,841

 
1,257

 
$
92.35

 
$
96.21

Awarded
756

 
194

 
$
184.10

 
$
183.29

Vested
(1,138
)
 
(741
)
 
$
75.29

 
$
60.80

Cancelled
(253
)
 
(127
)
 
$
99.50

 
$
99.30

Outstanding at January 3, 2016
2,206

 
583

 
$
131.80

 
$
169.41

Awarded
1,245

 
172

 
$
132.47

 
$
113.56

Vested
(928
)
 
(199
)
 
$
105.49

 
$
148.99

Cancelled
(230
)
 
(96
)
 
$
139.74

 
$
163.05

Outstanding at January 1, 2017
2,293

 
460

 
$
141.80

 
$
158.66

Awarded
879

 
238

 
$
207.38

 
$
191.53

Vested
(861
)
 
(92
)
 
$
131.62

 
$
189.09

Cancelled
(226
)
 
(64
)
 
$
149.03

 
$
173.83

Outstanding at December 31, 2017
2,085

 
542

 
$
172.92

 
$
166.15

______________________________________
(1)
The number of units reflect the estimated number of shares to be issued at the end of the performance period.

Pre-tax intrinsic values and fair value of vested restricted stock are as follows (in millions):
 
Years Ended
 
December 31,
2017
 
January 1,
2017
 
January 3,
2016
Pre-tax intrinsic value of outstanding restricted stock:
 
 
 
 
 
RSU
$
456

 
$
294

 
$
423

PSU
$
118

 
$
59

 
$
112

 
 
 
 
 
 
Fair value of restricted stock vested:
 
 
 
 
 
RSU
$
113

 
$
98

 
$
86

PSU
$
17

 
$
30

 
$
45



Stock Options

Stock option activity from December 28, 2014 through December 31, 2017 is as follows:
 
Options
(in thousands)
 
Weighted-
Average
Exercise Price
Outstanding at December 28, 2014
3,211

 
$
34.74

Exercised
(1,529
)
 
$
28.54

Cancelled
(83
)
 
$
10.31

Outstanding at January 3, 2016
1,599

 
$
41.95

Exercised
(552
)
 
$
29.41

Cancelled
(2
)
 
$
46.35

Outstanding at January 1, 2017
1,045

 
$
48.56

Exercised
(723
)
 
$
49.31

Outstanding and exercisable at December 31, 2017
322

 
$
46.93



The weighted-average remaining life of options outstanding and exercisable is 3.0 years as of December 31, 2017.

The aggregate intrinsic value of options outstanding and options exercisable as of December 31, 2017 was $55 million. Aggregate intrinsic value represents the product of the number of options outstanding multiplied by the difference between our closing stock price per share on the last trading day of the fiscal period, which was $218.49 as of December 29, 2017, and the exercise price. Total intrinsic value of options exercised was $101 million, $71 million, and $256 million for the years ended December 31, 2017, January 1, 2017, and January 3, 2016, respectively.

Employee Stock Purchase Plan

A total of 15.5 million shares of our common stock have been reserved for issuance under our 2000 Employee Stock Purchase Plan, or ESPP. The ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first of the offering period or purchase date, whichever is lower. The initial offering period commenced in July 2000.

Approximately 0.3 million, 0.2 million, and 0.2 million shares were issued under the ESPP during the years ended December 31, 2017, January 1, 2017, and January 3, 2016, respectively. As of December 31, 2017 and January 1, 2017, there were approximately 14.0 million and 14.3 million shares available for issuance under the ESPP, respectively.

Share Repurchases

On July 28, 2016, our Board of Directors authorized a new share repurchase program, which superseded all prior and available repurchase authorizations, to repurchase $250 million of outstanding common stock. During Q1 2017, we repurchased the remaining shares, completing the program.

On May 4, 2017, our Board of Directors authorized an additional share repurchase program to repurchase $250 million of outstanding commons stock. The repurchases may be completed under a 10b5-1 plan or at management’s discretion.

During the years ended December 31, 2017, January 1, 2017, and January 3, 2016, we repurchased approximately 1.4 million shares for $251 million, 1.8 million shares for $249 million, and 1.7 million shares for $274 million, respectively. Authorizations to repurchase $100 million of our common stock remained available as of December 31, 2017.