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Stock Options, Other Stock Awards and Warrants | 12 Months Ended
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Dec. 31, 2017
Stock Options, Other Stock Awards and Warrants [Abstract] |
Stock Options, Other Stock Awards and Warrants | (13) Stock Options, Other Stock Awards and Warrants The Compa ny has reserved 10,127 shares of its common stock for issuance upon exercise of options and other awards granted or to be granted under stock incentive plans for employees and for non-employee members of the Board of Directors (collectively, the "plans"). These awards generally vest a nd are expensed in equal annual amounts over three to five years. The plans provide that options be granted at exercise prices not less than the market value of the underlying common stock on the date the option is granted and options and share awards are adjusted for such changes as stock splits and stock dividends. Options are exercisable for periods of no more than seven years after date of grant. Upon exercise in the case of stock options, grant in the case of restricted stock or vesting in the case of performance based contingent stock and restricted stock unit grants, shares are issued out of available treasury shares. The Company’s current plan permits the granting of awards in the form of stock, stock appreciation rights, stock awards and cash awards in addition to stock options. Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee members of its Board of Directors, and stock performance awards for the years ende d December 3 1, 2017, December 25, 2016 and December 27, 2015 was $5 6,032, $61,624 and $5 3,880, respectively, and was recorded as follows:
| 2017 |  | 2016 |  | 2015
Cost of sales | $ | — |  |  | 200 |  |  | 366
Product development |  | 3,312 |  |  | 3,248 |  |  | 3,527
Selling, distribution and administration |  | 52,720 |  |  | 58,176 |  |  | 49,987
|  | 56,032 |  |  | 61,624 |  |  | 53,880
Income tax benefit |  | 9,574 |  |  | 20,298 |  |  | 13,489
| $ | 46,458 |  |  | 41,326 |  |  | 40,391
The following table represents total stock compensation expense by award type related to stock performance awards, restricted stock units, stock options and awards made to non-employee members of the Company’s Board of Directors, for the years ended December 31, 2017, December 25, 2016 and December 27, 2015:
| 2017 |  | 2016 |  | 2015
Stock performance awards | $ | 27,522 |  |  | 34,248 |  |  | 27,960
Restricted stock units |  | 20,573 |  |  | 19,908 |  |  | 19,052
Stock options |  | 6,342 |  |  | 5,838 |  |  | 5,419
Non-employee awards |  | 1,595 |  |  | 1,630 |  |  | 1,449
|  | 56,032 |  |  | 61,624 |  |  | 53,880
Income tax benefit |  | 9,574 |  |  | 20,298 |  |  | 13,489
| $ | 46,458 |  |  | 41,326 |  |  | 40,391
Stock Performance Awards In 2017, 2016 and 2015, as part of its annual equity grant to executive officers and certain other employees, the Company issued contingent stock performance awards (the "Stock Performance Awards"). These awards provide the recipients with the ability to earn shares of the Company's common stock based on the Company's achievement of stated cumulative operating performance targets over the three fiscal years ended December 2019, December 2018, and December 2017 for the 2017, 2016 and 2015 awards, respectively. Each Stock Performance Award has a target number of shares of common stock associated with such award which may be earned by the recipient if the Company achieves the stated diluted earnings per share and revenue targets. For certain employees, t he Stock Performance Awards also include an additional return on invested capital target in addition to the diluted earnings per share and revenue targets. The ultimate amount of the award may vary from 0% to 200% of the target number of shares, depending on the cumulative results achieved. Information with respect to Stock Performance Awards for 2017, 2016 and 2015 is as follows:
|  | 2017 |  | 2016 |  | 2015
Outstanding at beginning of year |  | 1,074 |  |  | 992 |  |  | 655
| Granted |  | 428 |  |  | 529 |  |  | 362
| Forfeited |  | (28) |  |  | (23) |  |  | (25)
| Vested |  | (574) |  |  | (424) |  |  | —
Outstanding at end of year |  | 900 |  |  | 1,074 |  |  | 992
Weighted average grant-date fair value: |  |  |  |  |  |  |  |
| Granted | $ | 99.58 |  |  | 74.69 |  |  | 61.85
| Forfeited | $ | 74.86 |  |  | 61.86 |  |  | 53.45
| Vested | $ | 52.21 |  |  | 47.21 |  |  | —
Outstanding at end of year | $ | 77.27 |  |  | 62.19 |  |  | 53.17
Shares granted in 2017 include 227 shares related to the 2015 award, reflecting increase s in the ultimate amount of shares to be issued based on the Company’s cumulative results achieved during the performance period. These shares are excluded from the calculation of the weighted average grant-date fair value of Stock Performance awards granted in 2017. Similarly, s hares granted in 2016 include d 276 additional shares related to the 2014 award, and shares granted in 2015 included 90 additional shares related to the 2013 award. These shares were excluded from the calculation of the weighted average grant-date fair value of Stoc k Performance awards granted in 2016 and 2015. During 2017, 2016 and 2015, the Company recognize d $2 7,522, $34,248 and $27,960, respectively, of expense relating to Stock Performance Awards. Awards are valued at the market value of the underlying common stock at the dates of grant and are expensed over the performance period. On a periodic basis, the Company reviews the actual and forecasted performance of the Company against the stated targets for each award. The total expense is adjusted upward or downward based on the expected amount of shares to be issued as defined in the respective stock per formance award agreement. If minimum targets as detailed under the award are not met, no additional compensation expense will be recognized and any previously recognized compensation expense will be reversed. At December 31, 2017, the amount of total unrec ognized compensation cost related to these awards is approximately $23,0 68 and the weighted average period over which this will be expensed is 19 months. Restricted Stock Units The Company, as part of its annual equity grant to executive officers and certain other employees, issues restricted stock or grants restricted stock units. These shares or units are nontransferable and subject to forfeiture for periods prescribed by the C ompany. These awards are valued at the market value of the underlying common stock at the date of grant and are subsequently amortized over the periods during which the restrictions lapse, generally between three and five years. During 2017, 2016 and 2015, the Company recognized compensation expense, net of forfeitures, on these awards of $20,57 3, $1 9,908 and $1 9,052, respectively. At December 31, 2017, the amount of total unrecognized compensation cost related to restricted stock units is $2 1,52 6 and the weighted average period over which this will be expensed is 22 months. In October 2012, as part of an Amended and Restated Employment Agreement, (the “Agreement”), the Company's Chief Executive Officer was awarded 587 shares to be granted in two tranches across 2013 and 2014, which were expensed from 2013 through 2017. 468 shares of this award were considered granted in 2013 while the remaining 119 shares w ere granted in February 2014. These awards provide d the recipient with the ability to earn shares of the Company's common stock based on the Company's achievement of four stated stock price hurdles and continued employment through December 31, 2017. Per th e agreement terms, a t the completion of the service period, the recipient wa s to receive one quarter of the award for each stock price hurdle achieved after April 24, 2013. The four stock price hurdles were $45, $52, $56 and $60 which were required to be maintained for a period of at least thirty days using the average closing price over such period. In August 2014, the Agreement was further amended to include additional requirements. Specifically, if the third and fourth stock price hurdles were achieved, the number of shares ultimately issued w as dependent on the average stock price for the thirty day period immediately prior to December 31, 2017. This amendment did not result in any inc remental fair value to the award which was used to record compensation expense for the award. A t December 31, 2017, all requirements of the Agreement were met and 587 shares were issued. The Company used a Monte Carlo simulation valuation model to determine the fair value of these awards. The following inputs were used in the simulation that resulted in an average grant date fair value for this award of $35.56:
|  | Inputs |
| Grant date stock price | $47.28 |
| Stock price volatility | 26.12% |
| Risk-free interest rate | 0.65% |
| Dividend yield | 3.38% |
Excluding the aforementioned award for 587 shares, information with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 2017, 2016 and 2015 is as follows:
|  | 2017 |  | 2016 |  | 2015
Outstanding at beginning of year |  | 795 |  |  | 955 |  |  | 937
| Granted |  | 203 |  |  | 245 |  |  | 254
| Forfeited |  | (41) |  |  | (41) |  |  | (52)
| Vested |  | (321) |  |  | (364) |  |  | (184)
Outstanding at end of year |  | 636 |  |  | 795 |  |  | 955
Weighted average grant-date fair value: |  |  |  |  |  |  |  |
| Granted | $ | 98.88 |  |  | 75.23 |  |  | 62.95
| Forfeited | $ | 68.01 |  |  | 59.37 |  |  | 51.57
| Vested | $ | 57.58 |  |  | 43.89 |  |  | 39.87
Outstanding at end of year | $ | 75.13 |  |  | 61.65 |  |  | 51.22
Stock Options Information with respect to stock options for each of the three fiscal years ended December 31, 2017 is as follows:
|  | 2017 |  | 2016 |  | 2015
Outstanding at beginning of year |  | 2,768 |  |  | 3,445 |  |  | 4,186
| Granted |  | 458 |  |  | 492 |  |  | 549
| Exercised |  | (597) |  |  | (1,143) |  |  | (1,280)
| Expired or forfeited |  | (50) |  |  | (26) |  |  | (10)
Outstanding at end of year |  | 2,579 |  |  | 2,768 |  |  | 3,445
Exercisable at end of year |  | 1,661 |  |  | 1,708 |  |  | 2,208
Weighted average exercise price: |  |  |  |  |  |  |  |
| Granted | $ | 98.80 |  |  | 74.42 |  |  | 61.77
| Exercised | $ | 49.31 |  |  | 41.75 |  |  | 37.54
| Expired or forfeited | $ | 57.33 |  |  | 56.43 |  |  | 46.38
Outstanding at end of year | $ | 62.12 |  |  | 53.21 |  |  | 46.41
Exercisable at end of year | $ | 50.02 |  |  | 45.50 |  |  | 41.36
With respect to the 2,579 outstanding options and 1,661 options exercisable at December 31, 2017, the weighted average remaining contractual life of these options was 3.69 years and 2.71 years, respectively. The aggregate intrinsic value of the options outstanding and exercisable at December 31, 2017 was $77,657 and $67,818, respectively. Substantially all unvested outstanding options are expected to vest. The Company uses the Black-Scholes valuation model in determining the fair value of stock options. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise ex perience. The weighted average fair value of options granted in fiscal 2017, 2016 and 2015 was $1 8.25, $13.01 and $9.29, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal years 2017, 2016 and 2015:
| 2017 |  | 2016 |  | 2015
Risk-free interest rate | 1.85% |  | 1.16% |  | 1.34%
Expected dividend yield | 2.31% |  | 2.74% |  | 2.98%
Expected volatility | 24% |  | 26% |  | 23%
Expected option life | 5 years |  | 5 years |  | 5 years
The intrinsic value s, which represent the difference between the fair market value on the date of exercise and the exercise price of the option, of the options exercised in fiscal 2017, 2016 and 2015 were $31,406, $4 7,992 and $4 1,906, respectively. At December 31, 2017, the amount of total unrecognized compensation cost related to stock options was $8,228 and the weighted average period over which this will be expensed is 22 months. Non-Employee Awards In 2017, 2016 and 2015, the Company granted 16, 2 3 and 20 shares of common stock, respectively, to its non-employee members of its Board of Directors. Of these shares, the receipt of 10 shares from the 2017 grant, 1 6 shares from the 2016 grant and 1 6 shares from the 2015 grant has been deferred to the date upon which the respective director ceases to be a member of the Company's Board of Directors. These awards were valued at the market value of th e underlying common stock at the date of grant and vested upon grant. In connection with these grants, compensation cost of $1,595 was recorded in selling, distribution and administration expense in the year ended December 31, 2017, $1,630 in the year ended December 2 5, 2016 and $1,449 in the year ended December 27, 2015.

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