XML 43 R21.htm IDEA: XBRL DOCUMENT
v3.22.0.1

STOCK-BASED COMPENSATION | 12 Months Ended
--- | ---
Dec. 25, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and bonuses of common stock. At December 25, 2021, 266,739 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. The Company’s policy is to issue shares upon exercise of stock options or vesting of restricted stock units or issuance of restricted stock from treasury shares held by the Company. Under the stock option plans, the exercise price of each option equals the market price at the time of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three years or on the fifth anniversary of the grant. Expiration of grants is seven to ten years from the date of grant. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. The Company recorded $28,720, $14,874 and $11,587 of compensation expense (included in selling, general and administrative expenses) in the 2021, 2020 and 2019 fiscal years for all share-based compensation programs, respectively. The associated tax benefits recorded in the 2021, 2020 and 2019 fiscal years was $7,180, $3,719 and $2,897, respectively. At December 25, 2021, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.38 years, was approximately $6,028. The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2021, 2020 and 2019 was estimated using the following assumptions:
| 2021 |  | 2020 |  | 2019
Expected volatility | 33.01 | % |  | 33.72 | % |  | 33.13 | %
Risk-free interest rate | 1.26 | % |  | 0.43 | % |  | 1.69 | %
Expected life from vesting date | 4.0 yrs |  | 4.0 yrs |  | 3.0 yrs
Dividend yield | 1.20 | % |  | 1.24 | % |  | 1.07 | %
Following is a summary of the stock option activity during 2019, 2020 and 2021:
| Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at December 29, 2018 | 578,413 |  |  | $ | 127.74 |  |  |  |  |
Granted | 57,648 |  |  | 147.31 |  |  |  |  |
Exercised | (119,789) |  |  | 113.02 |  |  |  |  |
Forfeited | (27,712) |  |  | 137.07 |  |  |  |  |
Outstanding at December 28, 2019 | 488,560 |  |  | $ | 133.13 |  |  | 4.04 |  | $ | 9,291 |
Options vested or expected to vest at December 28, 2019 | 478,575 |  |  | $ | 133.21 |  |  | 3.99 |  | 9,078 |
Options exercisable at December 28, 2019 | 341,828 |  |  | $ | 133.32 |  |  | 3.19 |  | 6,470 |
The weighted average per share fair value of options granted during 2019 was $37.85.
| Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at December 28, 2019 | 488,560 |  |  | $ | 133.13 |  |  |  |  |
Granted | 66,231 |  |  | 168.80 |  |  |  |  |
Exercised | (147,014) |  |  | 125.43 |  |  |  |  |
Forfeited | (8,212) |  |  | 137.49 |  |  |  |  |
Outstanding at December 26, 2020 | 399,565 |  |  | $ | 141.79 |  |  | 4.88 |  | $ | 12,103 |
Options vested or expected to vest at December 26, 2020 | 389,633 |  |  | $ | 141.56 |  |  | 4.81 |  | 11,890 |
Options exercisable at December 26, 2020 | 254,498 |  |  | $ | 138.64 |  |  | 3.38 |  | 8,510 |
The weighted average per share fair value of options granted during 2020 was $45.49.
| Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at December 26, 2020 | 399,565 |  |  | $ | 141.79 |  |  |  |  |
Granted | 47,223 |  |  | 252.89 |  |  |  |  |
Exercised | (169,908) |  |  | 135.76 |  |  |  |  |
Forfeited | (416) |  |  | 132.84 |  |  |  |  |
Outstanding at December 25, 2021 | 276,464 |  |  | $ | 164.48 |  |  | 5.88 |  | $ | 22,586 |
Options vested or expected to vest at December 25, 2021 | 268,338 |  |  | $ | 163.42 |  |  | 5.80 |  | 22,188 |
Options exercisable at December 25, 2021 | 154,860 |  |  | $ | 142.15 |  |  | 4.00 |  | 15,896 |
The weighted average per share fair value of options granted during 2021 was $67.81. In accordance with shareholder-approved plans, the Human Resource Committee of the Board of Directors may grant stock under various stock‑based compensation arrangements, including restricted stock awards, restricted stock units, performance based restricted stock units, and stock issued in lieu of cash bonuses. Under such arrangements, stock or cash (as applicable) is issued without direct cost to the employee. The restricted stock units are settled in Company stock when the restriction period ends. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. All cash-settled restricted stock units are marked-to-market and presented within other accrued expenses and noncurrent liabilities in our Consolidated Balance Sheets. During fiscal 2021, 2020 and 2019, the Company granted restricted stock units to directors and certain management employees as follows (which are not included in the above stock plan activity tables):
| 2021 |  | 2020 |  | 2019
Shares granted | 216,971 |  |  | 85,251 |  |  | 78,318 |
Weighted‑average per share price on grant date | $ | 236.28 |  |  | $ | 161.73 |  |  | $ | 145.89 |
Recognized compensation expense | $ | 16,147 |  |  | $ | 9,081 |  |  | $ | 8,815 |
During the second half of 2021, the Company granted 159,982 restricted shares, worth $36,916, to certain employees of Prospera. These restricted shares vest in equal installments over four years, and require the employees to continue employment over those four years. As such, the related compensation expense will be incurred over the vesting period. At December 25, 2021 the amount of deferred stock‑based compensation granted, to be recognized over a weighted‑average period of 3.21 years, was approximately $55,838. Performance-based restricted stock units (PSU) awards consist of shares of our stock which are payable upon the determination that the Company achieve certain established performance targets and can range from 0% to 200% of the targeted payout based on the actual results. PSU's granted in 2021 have a performance period of three years. The fair value of each PSU granted is equal to the fair market value of our common stock on the date of grant. PSUs granted generally have a three years period cliff vesting schedule; however, according to the grant agreements, if certain conditions are met, the employee (or beneficiary) will receive a prorated amount of the award based on active employment during the service period. During fiscal 2021, 2020 and 2019, the Company granted PSU awards as follows (which are not included in the above stock plan activity tables):
| 2021 |  | 2020 |  | 2019
Shares granted | 41,060 |  |  | 35,181 |  |  | 31,344 |
Weighted‑average per share price on grant date | $ | 230.40 |  |  | $ | 125.41 |  |  | $ | 136.14 |
Recognized compensation expense | $ | 10,035 |  |  | $ | 3,165 |  |  | $ | — |

X
- Definition The entire disclosure for share-based payment arrangement. + 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 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration