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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
STOCK-BASED COMPENSATION
The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of FASB ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). The Company recognized compensation expense of $6.1 million and $19.1 million, and related income tax benefits of $2.0 million and $6.4 million, for grants under its stock-based compensation plans for the 13 and 39 weeks ended September 30, 2017, respectively. The Company recognized compensation expense of $3.8 million and $15.3 million, and related income tax benefits of $1.4 million and $5.3 million, for grants under its stock-based compensation plans for the 12 and 36 weeks ended September 10, 2016.
The Company grants restricted stock or units (“restricted awards”), performance-based restricted stock or units (“performance awards”) and stock options under its stock-based compensation plans.
During the 39 weeks ended September 30, 2017, the Company granted 93,274 stock options with an estimated weighted average grant date fair value of $5.50 per option. During the 36 weeks ended September 10, 2016, the Company granted 2,424,506 stock options with an estimated weighted average grant date fair value of $3.34 per option. The Company estimated the fair value of the options on the date of grant using the Black-Scholes-Merton model with the following weighted average assumptions:
 
39 Weeks Ended
September 30, 2017
 
36 Weeks Ended
September 10, 2016
Expected market price volatility (1)
29.3
%
 
27.2
%
Risk-free interest rate (2)
1.7
%
 
1.0
%
Dividend yield (3)
1.0
%
 
1.4
%
Expected term (4)
4 years

 
4 years

(1) 
Based on historical volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over the four years prior to the grant.
(2) 
Represents the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant.
(3) 
Represents the Company’s estimated cash dividend yield for the expected term.
(4) 
Represents the period of time that options granted are expected to be outstanding. As part of the determination of the expected term, the Company concluded that all employee groups exhibit similar exercise and post-vesting termination behavior.
During the 39 weeks ended September 30, 2017, the Company issued 759,264 restricted awards at a weighted average grant date fair value of $23.04 per award. During the 36 weeks ended September 10, 2016, the Company issued 1,035,308 restricted awards at a weighted average grant date fair value of $16.80 per award.
During the 39 weeks ended September 30, 2017, the Company issued 503,482 performance awards at a weighted average grant date fair value of $25.17 per award. During the 36 weeks ended September 10, 2016, the Company issued 1,002,136 performance awards at a weighted average grant date fair value of $16.67 per award.