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Stock-Based Compensation | 9 Months Ended
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Sep. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | N ote 14 – Stock-Based Compensation Our accompanying consolidated statements of income reflect pre-tax share-based compensation expense of $10.9 million ($8.7 million after-tax) and $34.2 million ($26.2 million after-tax) for the three and nine months ended September 29, 2018, respectively, and $12.6 million ($9.0 million after-tax) and $32.0 million ($23.6 million af ter-tax) for the three and nine months ended September 30, 2017, respectively. Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation a t the grant date, based on the estimated fair value of the award, and recognize the cost (net of estimated forfeitures) as compensation expense on a straight-line basis over the requisite service period. Our stock-based compensation expense is reflected i n selling, general and administrative expenses in our consolidated statements of income. Stock-based awards are provided to certain employees and non-employee directors under the terms of our 2013 Stock Incentive Plan, as amended, and our 2015 Non-Employe e Director Stock Incentive Plan (together, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Prior to March 2009, awards under the Plans principally included a combination of at-the-money stock options and restricted stock/units. Since March 2009, equity-based awards have been granted solely in the form of restricted stock/units, with the exception of providing stock options to employees pursuant to certain pre-existing contractual obligations. Grants of r estricted stock/units are stock-based awards granted to recipients with specified vesting provisions. In the case of restricted stock, common stock is delivered on the date of grant, subject to vesting conditions. In the case of restricted stock units, c ommon stock is generally delivered on or following satisfaction of vesting conditions. We issue restricted stock/units that vest solely based on the recipient’s continued service over time (primarily four-year cliff vesting, except for grants made under t he 2015 Non-Employee Director Stock Incentive Plan, which are primarily 12-month cliff vesting) and restricted stock/units that vest based on our achieving specified performance measurements and the recipient’s continued service over time (primarily three-year cliff vesting). With respect to time-based restricted stock/units, we estimate the fair value on the date of grant based on our closing stock price. With respect to performance-based restricted stock/units, the number of shares that ultimately vest and are received by the recipient is based upon our performance as measured against specified targets over a specified period, as determined by the Compensation Committee of the Board of Directors. Although there is no guarantee that performance targets w ill be achieved, we estimate the fair value of performance-based restricted stock/units based on our closing stock price at time of grant. The Plans provide for adjustments to the performance-based restricted stock/units targets for significant events, in cluding, without limitation, acquisitions, divestitures, new business ventures, certain capital transactions (including share repurchases), restructuring costs, if any, certain litigation settlements or payments, if any, changes in accounting principles or in applicable laws or regulations and foreign excha nge fluctuations. Over the performance period, the number of shares of common stock that will ultimately vest and be issued and the related compensation expense is adjusted upward or downward based upon our estimation of achieving such performance targets. The ultimate number of shares delivered to recipients and the related compensation cost recognized as an expense will be based on our actual performance metrics as defined under the Plans. Total unrecognized compensation cost related to non-vested awards as of September 29, 2018 was $91.4 million, which is expected to be recognized over a weighted-average period of approximately 2.2 y ears. The following table summarizes stock option activity under the Plans during the nine months ended September 29, 2018:
|  |  |  |  |  |  | Weighted |  |  |
|  |  |  |  |  |  | Average |  |  |
|  |  |  | Weighted |  | Remaining |  |  |
|  |  |  | Average |  | Contractual |  | Aggregate
|  |  |  | Exercise |  | Life in |  | Intrinsic
|  | Shares |  | Price |  | Years |  | Value
Outstanding at beginning of period |  | 155 |  | $ | 29.65 |  |  |  |  |
Granted |  | - |  |  | - |  |  |  |  |
Exercised |  | (154) |  |  | 29.81 |  |  |  |  |
Forfeited |  | - |  |  | - |  |  |  |  |
Outstanding at end of period |  | 1 |  | $ | 17.22 |  | 0.4 |  | $ | 136
Options exercisable at end of period |  | 1 |  | $ | 17.22 |  | 0.4 |  | $ | 136
The following tables summarize the activity of our non-vested restricted stock/units for the nine months ended September 29, 2018:
|  | Time-Based Restricted Stock/Units
|  |  |  | Weighted Average |  |  |
|  |  |  | Grant Date Fair |  |  | Intrinsic Value
|  | Shares/Units |  | Value Per Share |  |  | Per Share
Outstanding at beginning of period |  | 1,233 |  | $ | 70.28 |  |  |  |
Granted |  | 363 |  |  | 65.88 |  |  |  |
Vested |  | (311) |  |  | 62.96 |  |  |  |
Forfeited |  | (78) |  |  | 77.96 |  |  |  |
Outstanding at end of period |  | 1,207 |  | $ | 70.34 |  |  | $ | 85.03
|  | Performance-Based Restricted Stock/Units
|  |  |  | Weighted Average |  |  |
|  |  |  | Grant Date Fair |  |  | Intrinsic Value
|  | Shares/Units |  | Value Per Share |  |  | Per Share
Outstanding at beginning of period |  | 1,226 |  | $ | 60.81 |  |  |  |
Granted |  | 397 |  |  | 68.76 |  |  |  |
Vested |  | (426) |  |  | 71.33 |  |  |  |
Forfeited |  | (72) |  |  | 77.39 |  |  |  |
Outstanding at end of period |  | 1,125 |  | $ | 55.75 |  |  | $ | 85.03

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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