Stock-Based Compensation (Tables)

9 Months Ended

Oct. 07, 2017

Cash Proceeds Received and Tax Benefit from Share-based Payment Awards

As of October 7, 2017, compensation expense related to the NQSOs was fully amortized.  The cash received, the windfall tax benefit, and intrinsic value from stock option exercises for the forty weeks ended October 7, 2017 and October 8, 2016, respectively, were as follows (amounts in thousands):

	October 7, 2017		October 8, 2016
Cash received from option exercises	$	9,296	$	18,862
Tax benefit at exercise, net	$	2,004	$	2,462
Intrinsic value of stock options exercised	$	7,197	$	10,503

Payout Determined from Total Shareholder Return Shares

The Company TSR compared to the Peer Group TSR will determine the payout as set forth below:

Percentile	Payout as % of Target
90th		200	%
70th		150	%
50th		100	%
30th		50	%
Below 30th		0	%

Performance-Contingent Restricted Stock Awards

The table below presents the TSR modifier share adjustment, ROIC modifier share adjustment, accumulated dividends on vested shares, and the tax benefit/(expense) at vesting of the performance-contingent restricted stock awards (amounts in thousands, except per share data).  The shortfall at vesting of 2015 award was recorded as tax expense.  The tax impact on the 2014 award at vesting was treated as a shortfall for reporting purposes.

Award granted		Fiscal year vested		TSR modifier increase/(decrease) shares			ROIC modifier increase/(decrease) shares			Dividends at vesting (thousands)		Tax benefit/(expense)			Fair value at vesting
	2015		2017		(378,219	)		(49,272	)	$	392	$	(3,099	)	$	6,316
	2014		2016		(248,872	)		(13,637	)	$	441	$	(3,090	)	$	7,173

Performance-Contingent Restricted Stock Activity

Performance-Contingent Restricted Stock

The company’s performance-contingent restricted stock activity for the forty weeks ended October 7, 2017 is presented below (amounts in thousands, except price data):  

	Shares			Weighted Average Grant Date Fair Value
Nonvested shares at December 31, 2016		1,543		$	21.53
Initial grant at target		855		$	21.64
Grant reduction for not achieving the ROIC modifier		(49	)	$	19.14
Grant reduction for not achieving the TSR modifier		(378	)	$	21.21
Vested		(329	)	$	19.14
Forfeited		(47	)	$	21.09
Nonvested shares at October 7, 2017		1,595		$	22.21

Deferred Stock Activity

The deferred stock activity for the forty weeks ended October 7, 2017 is set forth below (amounts in thousands, except price data):  

	Shares			Weighted Average Fair Value		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Nonvested shares at December 31, 2016		149		$	20.39
Vested		(149	)	$	20.39
Granted		87		$	18.70
Nonvested shares at October 7, 2017		87		$	18.70		0.61	$	1,531

Summary of Company's Stock-Based Compensation Expense

The following table summarizes the company’s stock-based compensation expense for the twelve and forty weeks ended  October 7, 2017 and October 8, 2016, respectively (amounts in thousands):

	For the Twelve Weeks Ended				For the Forty Weeks Ended
	October 7, 2017		October 8, 2016		October 7, 2017		October 8, 2016
Performance-contingent restricted stock awards	$	2,638	$	3,220	$	10,321	$	13,335
Deferred and restricted stock		380		479		1,387		1,682
Stock appreciation rights		—		—		—		(12	)
Total stock-based compensation	$	3,018	$	3,699	$	11,708	$	15,005

Stock Option

Stock Option Activity

The stock option activity for the forty weeks ended October 7, 2017 pursuant to the EPIP is set forth below (amounts in thousands, except price data):

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2016		1,846		$	10.89
Exercised		(852	)	$	10.91
Outstanding at October 7, 2017		994		$	10.87		0.34	$	7,835
Exercisable at October 7, 2017		994		$	10.87		0.34	$	7,835

Performance-Contingent Total Shareholder Return Shares

Performance Contingent TSR Shares, ROIC Shares and Restricted Stock Awards

The following performance-contingent TSR Shares have been granted under the Omnibus Plan and have service period remaining (amounts in thousands, except price data):

Grant date	January 1, 2017		January 3, 2016
Shares granted		426		401
Vesting date	3/1/2019		2/21/2018
Fair value per share	$	23.31	$	24.17

Return On Invested Capital

Performance Contingent TSR Shares, ROIC Shares and Restricted Stock Awards

The following performance-contingent ROIC Shares have been granted under the Omnibus Plan and have service period remaining (amounts in thousands, except price data):

Grant date	January 1, 2017		January 3, 2016
Shares granted		426		401
Vesting date	3/1/2019		2/21/2018
Fair value per share	$	19.97	$	21.49