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Share-Based Compensation
 9 Months Ended
Oct. 01, 2016
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 October 1, 2016 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
24,267

 
$
34.46

 
 
 
 
Granted
4,038

 
55.20

 
 
 
 
Exercised
(3,905
)
 
17.23

 
 
 
 
Forfeited and expired
(427
)
 
54.47

 
 
 
 
Outstanding as of October 1, 2016
23,973

 
40.41

 
$
531,419

 
6.28
 
 
 
 
 
 
 
 
Exercisable as of October 1, 2016
12,642

 
$
25.96

 
$
452,445

 
4.41

The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the nine months ended October 1, 2016 were as follows:
Expected volatility (%)
 
29.4
%
Expected term (yrs)
 
7

Risk-free rate (%)
 
1.5
%
Fair value per option
 
$
18.35


As of October 1, 2016, there was $168 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 3.32 years.
Non-vested Shares

Non-vested share activity for the nine months ended October 1, 2016 was as follows:
(In thousands, except per share data)
Number of Shares
 
Weighted-Average
Grant Date Fair Value
 
 
 
 
Outstanding at beginning of year
557

 
$
59.42

Granted
55

 
57.68

Vested
(216
)
 
53.74

Forfeited
(44
)
 
70.49

 
 
 
 
Outstanding as of October 1, 2016
352

 
$
61.25


As of October 1, 2016, there was $10 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 1.88 years.
Share-Based Compensation Cost

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)
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
Stock option and non-vested share compensation expense
$
18,942

 
$
18,875

 
$
56,896

 
$
53,326

Associate stock purchase plan expense
1,503

 
1,485

 
4,722

 
4,238

Amounts capitalized in software development costs, net of amortization
(95
)
 
(183
)
 
(486
)
 
(483
)
 
 
 
 
 
 
 
 
Amounts charged against earnings, before income tax benefit
$
20,350

 
$
20,177

 
$
61,132

 
$
57,081

 
 
 
 
 
 
 
 
Amount of related income tax benefit recognized in earnings
$
6,045

 
$
6,398

 
$
18,793

 
$
18,595



Treasury Stock

In March 2016, our Board of Directors authorized a share repurchase program that allows the Company to repurchase shares of our common stock up to $300 million, 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 October 1, 2016, we repurchased 3.7 million shares for consideration of $200 million. These shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. At October 1, 2016, $100 million remains available for repurchase under the program.