the consolidated financial statements, the Company settled all exercises of stock options and vesting of restricted shares, including performance shares, with treasury shares.

The Company’s current outstanding stock options have maximum contractual terms of 10 years and vest ratably over three years or cliff vest after three years. The exercise price of options granted is equal to the market price of the Company’s common stock on the date of grant. The fair value of stock options on the date of grant is calculated using the Black-Scholes Model. The aggregate intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price.


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years	Aggregate Intrinsic Value
Outstanding at December 29, 2019	11,937	$	13.92
Granted	1,807	22.48
Exercised	(2,395)	10.09
Forfeited and/or expired	(107)	19.48
Outstanding at January 3, 2021	11,242	$	16.06	6.74	$	66,853
Vested or expected to vest at January 3, 2021	11,115	$	16.01	6.72	$	66,676
Exercisable at January 3, 2021	7,240	$	13.46	5.59	$	61,278

The total intrinsic value of options exercised during 2020, 2019 and 2018 was $28,111, $26,947 and $62,744, respectively. The weighted average grant date fair value of stock options granted during 2020, 2019 and 2018 was $6.02, $3.40 and $4.12, respectively.


	2020		2019		2018
Risk-free interest rate	0.22	%	1.57	%	2.77	%
Expected option life in years	4.50		4.50		5.62
Expected volatility	38.02	%	23.55	%	24.27	%
Expected dividend yield	1.72	%	2.03	%	1.84	%

The risk-free interest rate represents the U.S. Treasury zero-coupon bond yield correlating to the expected life of the stock options granted. The expected option life represents the period of time that the stock options granted are expected to be outstanding based on historical exercise trends for similar grants. The expected volatility is based on the historical market price volatility of the Company over a period equivalent to the expected option life. The expected dividend yield represents the Company’s annualized average yield for regular quarterly dividends declared prior to the respective stock option grant dates.

The Black-Scholes Model has limitations on its effectiveness including that it was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable and that the model requires the use of highly subjective assumptions, such as expected stock price volatility. Employee stock option awards have characteristics significantly different from those of traded options and changes in the subjective input assumptions can materially affect the fair value estimates.

The Company grants RSAs and RSUs, which primarily cliff vest after 1 to 3 years. For the purposes of our disclosures, the term “Restricted Shares” applies to RSAs and RSUs collectively unless otherwise noted. The fair value of Restricted Shares granted is determined using the fair market value of the Company’s common stock on the date of grant, as set forth in the applicable plan document.


	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at December 29, 2019	1,071	$	16.46
Granted	458	22.39
Vested	(401)	16.11
Forfeited	(39)	18.37
Non-vested at January 3, 2021	1,089	$	19.01

The Company grants performance-based awards to certain officers and key employees. The vesting of these awards is contingent upon meeting one or more defined operational or financial goals (a performance condition) or common stock share prices (a market condition). The quantity of shares awarded ranges from 0% to 200% of “Target,” as defined in the award agreement as the midpoint number of shares, based on the level of achievement of the performance and market conditions.

The fair values of the performance condition awards granted in 2020, 2019 and 2018 were determined using the fair market value of the Company’s common stock on the date of grant, as set forth in the applicable plan document. Share-based compensation expense recorded for performance condition awards is reevaluated at each reporting period based on the probability of the achievement of the goal.

The fair value of market condition awards granted in 2020, 2019 and 2018 were estimated using the Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that the market conditions will be achieved and is applied to the trading price of our common stock on the date of grant.


	2020		2019		2018
Risk-free interest rate	1.38	%	2.51	%	2.38	%
Expected life in years	3.00		3.00		3.00
Expected volatility	23.26	%	23.19	%	24.97	%
Expected dividend yield (a)	0.00	%	0.00	%	0.00	%

Share-based compensation expense is recorded ratably for market condition awards during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met.


	Performance Condition Awards			Market Condition Awards
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Non-vested at December 29, 2019	439	$	15.75	362	$	19.09
Granted	149	23.37		115	30.31
Dividend equivalent units issued (a)	7	—		6	—
Vested (b)	(148)	13.87		(130)	16.81
Forfeited	(18)	17.29		(7)	26.32
Non-vested at January 3, 2021	429	$	19.06	346	$	23.65

(a)Dividend equivalent units are issued in lieu of cash dividends for non-vested performance shares. There is no weighted average fair value associated with dividend equivalent units.

(b)Market condition awards exclude the vesting of an additional 80 shares, which resulted from the performance of the awards exceeding Target.

The total fair value of performance condition awards that vested in 2020, 2019 and 2018 was $3,447, $7,720 and $3,681, respectively. The total fair value of market condition awards that vested in 2020, 2019 and 2018 was $4,910, $7,135 and $3,143, respectively.

During 2020, 2019 and 2018, the Company modified the terms of awards granted to seven, ten and eight employees, respectively, in connection with its Operations and Field Realignment Plan, IT Realignment Plan and G&A Realignment Plan discussed in Note 5. These modifications resulted in the accelerated vesting of certain stock options in connection with the termination of such employees. As a result, during 2020, 2019 and 2018, the Company recognized an increase in share-based compensation of $621, $1,011 and $1,238, respectively, which was included in “Reorganization and realignment costs.”

Total share-based compensation and the related income tax benefit recognized in the Company’s consolidated statements of operations were as follows:


	Year Ended
	2020		2019		2018
Stock options	$	8,499	$	7,685	$	7,172
Restricted shares (a)	6,507		5,762		6,030
Performance shares:
Performance condition awards	782		2,195		1,491
Market condition awards	2,521		2,023		1,987
Modifications, net	621		1,011		1,238
Share-based compensation	18,930		18,676		17,918
Less: Income tax benefit	(2,958)		(2,990)		(3,418)
Share-based compensation, net of income tax benefit	$	15,972	$	15,686	$	14,500

(a)2020, 2019 and 2018 include $213, $396 and $319, respectively, related to retention awards in connection with the Company’s G&A Realignment Plan, which is included in “Reorganization and realignment costs.” See Note 5 for further information.

As of January 3, 2021, there was $25,156 of total unrecognized share-based compensation, which will be recognized over a weighted average amortization period of 2.16 years.