(11) 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 30, 2017, 529,356 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 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 years from the date of grant. The Company recorded $5,137, $5,782 and $5,137 of compensation expense (included in selling, general and administrative expenses) in the 2017, 2016 and 2015 fiscal years, respectively. The associated tax benefits recorded in the 2017, 2016 and 2015 fiscal years was $1,952, $2,197 and $1,952, respectively.

At December 30, 2017, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.03 years, was approximately $7,588.

The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2017, 2016 and 2015 was estimated using the following assumptions:



	2017		2016		2015
Expected volatility	33.76	%	33.88	%	34.13	%
Risk-free interest rate	2.12	%	1.83	%	1.58	%
Expected life from vesting date	3.0 yrs		3.0 yrs		3.0 yrs
Dividend yield	1.17	%	1.13	%	0.94	%

(11) STOCK-BASED COMPENSATION (Continued)

Following is a summary of the activity of the stock plans during 2015, 2016 and 2017:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 27, 2014	768,595		$	113.72
Granted	291,708		104.89
Exercised	(169,493	)	74.37
Forfeited	(41,201	)	137.02
Outstanding at December 26, 2015	849,609		$	117.42	5.18	$	4,536
Options vested or expected to vest at December 26, 2015	818,300		$	117.61	5.13	4,456
Options exercisable at December 26, 2015	409,068		$	119.43	3.74	3,376

The weighted average per share fair value of options granted during 2015 was $27.91.



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 26, 2015	849,609		$	117.42
Granted	85,092		151.37
Exercised	(109,893	)	101.69
Forfeited	(31,635	)	129.36
Outstanding at December 31, 2016	793,173		$	122.77	4.78	$	16,640
Options vested or expected to vest at December 31, 2016	774,139		$	124.18	4.75	16,200
Options exercisable at December 31, 2016	469,844		$	123.75	3.96	9,056

The weighted average per share fair value of options granted during 2016 was $40.00.



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2016	793,173		$	122.77
Granted	67,965		164.35
Exercised	(284,574	)	121.92
Forfeited	(5,942	)	104.26
Outstanding at December 30, 2017	570,622		$	128.34	4.66	$	21,806
Options vested or expected to vest at December 30, 2017	558,114		$	128.00	4.63	21,517
Options exercisable at December 30, 2017	351,794		$	123.90	3.94	15,005

The weighted average per share fair value of options granted during 2017 was $43.68.

(11) STOCK-BASED COMPENSATION (Continued)

Following is a summary of the status of stock options outstanding at December 30, 2017:



Outstanding and Exercisable By Price Range
Options Outstanding					Options Exercisable
Exercise Price Range	Number	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number	Weighted Average Exercise Price
$83.94 - 114.11	239,480	4.71 years	$	103.23	147,216	$	102.42
$120.91 - 136.42	127,901	3.22 years	133.88		125,459	134.07
$142.67 - 164.35	203,241	5.53 years	154.42		79,119	147.73
	570,622				351,794

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, and stock issued in lieu of cash bonuses. Under such arrangements, stock is issued without direct cost to the employee. The restricted stock units are settled in Company stock when the restriction period ends. During fiscal 2017, 2016 and 2015, 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):



	2017		2016		2015
Shares issued	62,160		58,961		47,038
Weighted‑average per share price on grant date	$	163.18	$	150.48	$	108.97
Recognized compensation expense	$	5,569	$	4,069	$	4,511

At December 30, 2017 the amount of deferred stock‑based compensation granted, to be recognized over a weighted‑average period of 2.03 years, was approximately $15,971.