Stock-Based Compensation (Tables)

12 Months Ended

Dec. 29, 2017

Share-Based Compensation, Restricted Stock Units Award Activity

The number of unvested restricted stock unit awards outstanding as of December 29, 2017 is as follows ⁽¹⁾:

					Weighted-average
	Number		Weighted-average		remaining		Aggregate
	of awards		grant date		contractual		intrinsic value
	outstanding		fair value		term (years)		(in thousands) ⁽²⁾

Balance as of December 30, 2016		695,314	$	37.82
Awards granted		262,212		59.00
Awards vested		(359,174)		39.77
Awards forfeited		(5,760)		46.97
Balance as of December 29, 2017		592,592	$	45.91		1.6	$	42,133

⁽¹⁾	Does not include employee stock purchase plans or stock option plans.

⁽²⁾

The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market value as of December 29, 2017 was $71.10.

Stock Option Activity

Option activity is as follows ⁽¹⁾:

					Weighted-average
	Number		Weighted-average		remaining		Aggregate
	of shares		exercise		contractual		intrinsic value
	outstanding		price		term (years)		(in thousands)

Balance as of December 30, 2016		319,000	$	31.58
Options granted		56,000		58.10
Options forfeited and expired		-		-
Options exercised		(35,000)		23.38

Balance as of December 29, 2017		340,000	$	36.79		6.23	$	11,665

Exercisable at December 29, 2017		204,750	$	27.55		4.88	$	8,917

⁽¹⁾ Does not include restricted stock or employee stock purchase plans.

The Assumptions Used to Value Option Grants

The assumptions used to value option grants for fiscal years 2017, 2016 and 2015 are as follows:

	Stock Option Plan
	2017			2016			2015

Expected term (in years)		5.9			6.0			6.1
Risk-free interest rate		2.11	%		1.28	%		1.69	%
Volatility		24	%		25	%		27	%
Dividend yield		0	%		0	%		0	%

Stock-Based Compensation Expense Recognized in Consolidated Statements of Income

The amount of stock-based compensation expense and the related income tax benefit recognized in the Company’s consolidated statements of income for fiscal years 2017, 2016 and 2015 is as follows:

	2017		2016		2015
(In thousands)
Compensation and related expenses:
Restricted stock units	$	14,809	$	12,225	$	11,907
Stock option grants		749		569		552
Sub-total		15,558		12,794		12,459

General and administrative expenses:
Restricted stock units		597		539		500
Sub-total		597		539		500
Total stock-based compensation expense	$	16,155	$	13,333	$	12,959

Income tax benefit	$	6,331	$	5,214	$	5,068