Share-Based Compensation (Tables)

12 Months Ended

Jan. 03, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock option activity during 2020:

	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

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted average grant date fair value of stock options was determined using the following assumptions:

	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	%

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes activity of Restricted Shares during 2020:

	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

Schedule of Share-based Payment Award, Performance Share Awards, Valuation Assumptions

The input variables are noted in the table below:

	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	%

_______________

(a)The Monte Carlo method assumes a reinvestment of dividends.

Schedule of Nonvested Performance-based Units Activity

The following table summarizes activity of performance shares at Target during 2020:

	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.

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period 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.