STOCK-BASED COMPENSATION

12 Months Ended

Dec. 28, 2024

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

(11) STOCK-BASED COMPENSATION

The Company maintains stock‑based compensation plans approved by its shareholders, which allow the Human Resources Committee of the Board of Directors to grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock units, and bonuses of common stock. As of December 28, 2024, 1,426,995 shares of common stock remained available for issuance under the plans. The shares and options issued and available are subject to changes in capitalization. The Company’s policy is to issue shares upon the exercise of stock options, the vesting of restricted stock units, or the issuance of restricted stock from treasury shares held by the Company.

For the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, the Company recorded stock-based compensation expenses of $29,869, $39,219, and $41,850, respectively, included in “Selling, general, and administrative expenses” in the Consolidated Statements of Earnings. The associated tax benefits recorded for these periods were $3,412, $7,092, and $10,463, respectively.

Stock Options

Stock options granted under the plans have an exercise price equal to the closing market price on the date of the grant. Options vest beginning on the first anniversary of the grant date, with equal amounts vesting over three years or on the grant’s fifth anniversary. The expiration of grants ranges from seven to ten years from the date of the award. Restricted stock units and awards typically vest in equal installments over three or four years, beginning on the first anniversary of the grant.

As of December 28, 2024, approximately $5,213 of unrecognized stock option compensation expense will be recognized over a weighted-average period of 1.93 years. During the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, compensation expense for stock options was $2,252, $3,687, and $3,120, respectively.

The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made as of December 28, 2024, December 30, 2023, and December 31, 2022 was estimated using the following assumptions:

	December 28,		December 30,		December 31,
	2024		2023		2022
Expected volatility	31.65	%	31.97	%	32.36	%
Risk-free interest rate	4.22	%	4.21	%	3.75	%
Expected life from vesting date	5.4 yrs		5.4 yrs		5.4 yrs
Dividend yield	0.88	%	0.87	%	1.10	%

The following is a summary of the stock option activity for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022:

				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contractual	Intrinsic
	Shares	Price		Term	Value
Outstanding as of December 30, 2023	181,530	$	220.77
Granted	25,548		331.47
Exercised	(49,583)		164.38
Forfeited	(24,062)		268.84
Outstanding as of December 28, 2024	133,433	$	253.11	7.93	$	8,281
Options vested or expected to vest as of December 28, 2024	131,198	$	252.57	7.91		8,200
Options exercisable as of December 28, 2024	79,824	$	232.00	7.10		6,340

The weighted average per share fair value of options granted during the fiscal year ended December 31, 2024 was $107.27.

				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contractual	Intrinsic
	Shares	Price		Term	Value
Outstanding as of December 31, 2022	195,690	$	214.62
Granted	43,340		226.55
Exercised	(39,055)		155.24
Forfeited	(18,445)		307.81
Outstanding as of December 30, 2023	181,530	$	220.77	7.99	$	5,992
Options vested or expected to vest as of December 30, 2023	178,820	$	220.31	7.96		5,975
Options exercisable as of December 30, 2023	116,545	$	203.78	7.13		5,576

The weighted average per share fair value of options granted during the fiscal year ended December 31, 2023 was $72.60.

				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contractual	Intrinsic
	Shares	Price		Term	Value
Outstanding as of December 25, 2021	276,464	$	164.48
Granted	40,564		332.63
Exercised	(121,163)		139.89
Forfeited	(175)		104.47
Outstanding as of December 31, 2022	195,690	$	214.62	7.53	$	22,644
Options vested or expected to vest as of December 31, 2022	189,267	$	212.69	7.48		22,261
Options exercisable as of December 31, 2022	90,556	$	172.08	6.40		14,276

The weighted average per share fair value of options granted during the fiscal year ended December 31, 2022 was $104.01.

Restricted Stock Units

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 the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, the Company granted restricted stock units to directors and certain management employees as follows:

	Fiscal Year Ended
	December 28,		December 30,		December 31,
	2024		2023		2022
Restricted stock units granted		52,175		67,723		60,901
Weighted‑average per share price on grant date	$	295.84	$	233.96	$	313.75
Recognized compensation expense	$	17,141	$	22,478	$	22,664

As of December 28, 2024, the amount of deferred stock‑based compensation granted, to be recognized over a weighted‑average period of 1.66 years, was approximately $27,879.

Performance Stock Units (“PSUs”)

PSUs consist of shares of the Company’s stock, payable upon the determination that the Company has achieved certain established performance targets. PSUs can range from 0% to 200% of the targeted payout based on actual results over a performance period of three years. The fair value of each PSU granted is equal to the fair market value of the Company’s common stock on the date of grant. PSUs generally have a three-year cliff-vesting schedule; however, according to the grant agreements, if certain conditions are met, the employee (or beneficiary) will receive a prorated amount based on active employment during the service period.

During the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, the Company granted PSU awards as follows:

	Fiscal Year Ended
	December 28,		December 30,		December 31,
	2024		2023		2022
Shares granted		34,665		38,201		33,736
Weighted‑average per share price on grant date	$	234.52	$	299.20	$	215.15
Recognized compensation expense	$	10,476	$	13,054	$	16,066