XML 54 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Share-Based Compensation
 9 Months Ended
Sep. 27, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation and Equity
Share-Based Compensation and Equity

Stock Options

Options activity for the nine months ended September 27, 2014 was as follows:
(In thousands, except per share data)
Number of
Shares
 
Weighted-
Average
Exercise 
Price
 
Aggregate
Intrinsic 
Value
 
Weighted-Average      
Remaining      
Contractual
 Term (Yrs)      
Outstanding at beginning of year
24,407

 
$
22.24

 
 
 
 
Granted
3,200

 
51.94

 
 
 
 
Exercised
(1,784
)
 
11.95

 
 
 
 
Forfeited and expired
(255
)
 
41.98

 
 
 
 
Outstanding as of September 27, 2014
25,568

 
26.48

 
$
823,590

 
6.17
 
 
 
 
 
 
 
 
Exercisable as of September 27, 2014
14,946

 
$
13.99

 
$
667,501

 
4.65

The weighted-average assumptions used to estimate the fair value of stock options granted in 2014 were as follows: 
Expected volatility (%)
 
29.7
%
Expected term (yrs)
 
9.2

Risk-free rate (%)
 
2.9
%
Fair value per option
 
$
22.54


As of September 27, 2014, there was $148.1 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 3.30 years.
Non-vested Shares

Non-vested share activity for the nine months ended September 27, 2014 was as follows:
(In thousands, except per share data)
Number of Shares
 
Weighted-Average
Grant Date Fair Value
 
 
 
 
Outstanding at beginning of year
552

 
$
38.54

Granted
166

 
55.38

Vested
(206
)
 
33.33

Forfeited
(3
)
 
33.22

 
 
 
 
Outstanding as of September 27, 2014
509

 
$
46.17


As of September 27, 2014, there was $13.3 million of total unrecognized compensation cost related to non-vested share awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 1.55 years.

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and our associate stock purchase plan:
 
Three Months Ended
 
Nine Months Ended
(In thousands)
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
Stock option and non-vested share compensation expense
$
15,061

 
$
12,527

 
$
43,330

 
$
33,650

Associate stock purchase plan expense
1,109

 
1,168

 
3,486

 
2,867

Amounts capitalized in software development costs, net of amortization
(171
)
 
(237
)
 
(845
)
 
(900
)
 
 
 
 
 
 
 
 
Amounts charged against earnings, before income tax benefit
$
15,999

 
$
13,458

 
$
45,971

 
$
35,617

 
 
 
 
 
 
 
 
Amount of related income tax benefit recognized in earnings
$
5,616

 
$
5,221

 
$
16,136

 
$
13,819



Treasury Stock

In May 2014, our Board of Directors approved an amendment to the stock repurchase program that was authorized in December 2013. Under the amendment, the Company may repurchase shares of our common stock up to an additional $100.0 million. This increase authorizes repurchases of up to $317.0 million, in the aggregate, excluding transaction costs. The repurchases are to be effectuated in the open market, by block purchase, or possibly through other transactions managed by broker-dealers. No time limit was set for completion of the program.

During the nine months ended September 27, 2014, we repurchased 4.1 million shares for consideration of $217.0 million, excluding transaction costs. These shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. At September 27, 2014, $100.0 million remains available for purchases under the program.