Share-Based Compensation (Tables)

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Abstract]

Schedule Of Share-based Payment Award Valuation Assumptions

Restricted Stock Units

For time-based RSUs, the fair value of each award was determined based on the market price of our common stock on the date of grant. Time-based RSUs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. During the vesting period, holders of RSUs are entitled to receive dividend equivalents, but are not entitled to voting rights.

For performance-based RSUs, the fair value of each award was determined based on the market price of our common stock on the date of grant. Performance-based awards generally may vest following a three-year period subject to our achievement of certain financial goals as specified in the grant agreements. Depending on our results during the three-year performance period, the actual number of awards vesting at the end of the period generally ranges from 0% to 200% of the performance award. Performance-based RSUs generally do not have dividend equivalent rights and do not have voting rights until the shares are earned and issued following the applicable performance period. The number of performance-based awards outstanding is based on the number of awards that we believed were probable of vesting at December 28, 2019. Performance-based RSU’s granted during 2019 are presented as grants in the table at their respective target levels. The change in units based on performance represents the change in the number of granted awards expected to vest based on the updated probability assessment as of December 28, 2019. Compensation expense for performance-based awards of $7.8 million, $5.4 million, and $13.6 million in 2019, 2018 and 2017, was determined based on management’s estimate of the probable vesting outcome.

For market-based RSUs, the fair value of each award was determined using a Monte Carlo simulation model. The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows:

Monte Carlo Simulation Model Assumptions	2019		2018		2017
Risk-free interest rate (1)	2.5	%	2.4	%	1.6	%
Expected dividend yield	0.2	%	0.2	%	0.2	%
Expected stock price volatility (2)	33.5	%	34.0	%	26.2	%

⁽¹⁾  The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the vesting period of the award.

⁽²⁾  Expected volatility is determined based on historical volatility over a matching look-back period and is consistent with the correlation coefficients between our stock prices and our peer group.

Additionally, we estimated a liquidity discount of 10.5% using the Chaffe Protective Put Method to adjust the fair value for the post-vest restrictions.

Restricted Stock Units Activity

	Time-Based				Performance-Based				Market-Based
(in thousands, except per share data)	Number of Awards		Weighted-Average Grant Date Fair Value		Number of Awards		Weighted-Average Grant Date Fair Value		Number of Awards		Weighted-Average Grant Date Fair Value
Nonvested at December 29, 2018	410		$	132.49	125		$	126.19	53		$	133.78
Granted	279		157.31		39		159.80		28		165.70
Change in units based on performance	—		—		(6	)	120.72		—		—
Vested	(164	)	133.97		(17	)	160.94		—		—
Forfeited	(65	)	140.11		(14	)	128.10		(8	)	142.01
Nonvested at December 28, 2019	460		$	145.95	127		$	132.03	73		145.08

Restricted Stock Units Activity Additional Information

	Year Ended
(in thousands, except per share data)	December 28, 2019		December 29, 2018		December 30, 2017
Time-based:
Weighted average fair value of RSUs granted	$	157.31	$	130.12	$	131.01
Total grant date fair value of RSUs vested	$	21,955	$	17,527	$	13,578
Performance-based:
Weighted average fair value of RSUs granted	$	159.80	$	119.08	$	146.42
Total grant date fair value of RSUs vested	$	2,666	$	9,224	$	7,823
Market-based:
Weighted average fair value of RSUs granted	$	165.70	$	131.48	$	139.33
Total grant date fair value of RSUs vested	$	—	$	—	$	—