XML 39 R21.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 28, 2019
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
(12) 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 28, 2019, 1,208,223 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 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 $11,587, $10,392 and $10,706 of compensation expense (included in selling, general and administrative expenses) in the 2019, 2018 and 2017 fiscal years for all share-based compensation programs, respectively. The associated tax benefits recorded in the 2019, 2018 and 2017 fiscal years was $2,897, $2,598 and $4,068, respectively.
At December 28, 2019, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.31 years, was approximately $4,979.
(12) STOCK-BASED COMPENSATION (Continued)
The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2019, 2018 and 2017 was estimated using the following assumptions:
 
2019
 
2018
 
2017
Expected volatility
33.13
%
 
33.39
%
 
33.76
%
Risk-free interest rate
1.69
%
 
2.67
%
 
2.12
%
Expected life from vesting date
3.0 yrs

 
3.0 yrs

 
3.0 yrs

Dividend yield
1.07
%
 
1.07
%
 
1.17
%

Following is a summary of the stock option activity during 2017, 2018 and 2019:
 
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.
 
Number of
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
Outstanding at December 30, 2017
570,622

 
$
128.34

 
 
 
 
Granted
105,135

 
112.08

 
 
 
 
Exercised
(63,717
)
 
106.26

 
 
 
 
Forfeited
(33,627
)
 
129.52

 
 
 
 
Outstanding at December 29, 2018
578,413

 
$
127.74

 
4.35
 
$
909

Options vested or expected to vest at December 29, 2018
565,952

 
$
127.84

 
4.30
 
909

Options exercisable at December 29, 2018
405,128

 
$
126.61

 
3.47
 
909





(12) STOCK-BASED COMPENSATION (Continued)
The weighted average per share fair value of options granted during 2018 was $30.48.
 
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.
Following is a summary of the status of stock options outstanding at December 28, 2019:
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
$104.47 - 112.08
 
183,658

 
4.59 years
 
$
108.58

 
113,866

 
$
106.43

$123.87 - 132.84
 
70,396

 
1.95 years
 
132.70

 
70,396

 
132.70

$142.67 - 164.35
 
234,506

 
4.24 years
 
152.75

 
157,566

 
152.97

 
 
488,560

 
 
 
 
 
341,828

 
 

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. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. During fiscal 2019, 2018 and 2017, 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):
 
2019
 
2018
 
2017
Shares granted
78,318

 
88,127

 
62,160

Weighted‑average per share price on grant date
$
145.89

 
$
114.89

 
$
163.18

Recognized compensation expense
$
8,815

 
$
6,328

 
$
5,569


At December 28, 2019 the amount of deferred stock‑based compensation granted, to be recognized over a weighted‑average period of 1.70 years, was approximately $19,501.