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Share-Based Compensation
 9 Months Ended
Sep. 28, 2019
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation and Equity Share-Based Compensation and Equity

Stock Options

Stock option activity for the nine months ended September 28, 2019 was as follows:
(In thousands, except per share and term data)
Number of
Shares
 
Weighted-
Average
Exercise 
Price
(Per Share)
 
Aggregate
Intrinsic 
Value
 
Weighted-Average      
Remaining      
Contractual
 Term (Yrs)      
 
 
 
 
 
 
 
 
Outstanding at beginning of year
21,792

 
$
52.31

 
 
 
 
Granted
1,045

 
65.53

 
 
 
 
Exercised
(4,821
)
 
40.91

 
 
 
 
Forfeited and expired
(946
)
 
61.39

 
 
 
 
Outstanding as of September 28, 2019
17,070

 
55.83

 
$
215,557

 
6.24
 
 
 
 
 
 
 
 
Exercisable as of September 28, 2019
9,181

 
$
51.62

 
$
154,997

 
4.76

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 September 28, 2019 were as follows:

Expected volatility (%)
 
25.1
%
Expected dividend rate (%)
 
1
%
Expected term (yrs)
 
7

Risk-free rate (%)
 
2.4
%
Fair value per option
 
$
17.58



As of September 28, 2019, there was $112 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 2.83 years.

Non-vested Shares and Share Units

Non-vested share and share unit activity for the nine months ended September 28, 2019 was as follows:
(In thousands, except per share data)
Number of Shares
 
Weighted-Average
Grant Date Fair Value
Per Share
 
 
 
 
Outstanding at beginning of year
882

 
$
62.82

Granted
2,262

 
66.47

Vested
(394
)
 
67.01

Forfeited
(64
)
 
63.01

 
 
 
 
Outstanding as of September 28, 2019
2,686

 
$
65.27


As of September 28, 2019, there was $144 million of total unrecognized compensation cost related to non-vested share and share unit awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 2.30 years.

Share-Based Compensation Cost

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and share units, and our associate stock purchase plan:
 
Three Months Ended
 
Nine Months Ended
(In thousands)
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Stock option and non-vested share and share unit compensation expense
$
30,537

 
$
25,209

 
$
73,421

 
$
74,348

Associate stock purchase plan expense
1,321

 
1,407

 
4,612

 
4,685

Amounts capitalized in software development costs, net of amortization
(76
)
 
266

 
70

 
587

 
 
 
 
 
 
 
 
Amounts charged against earnings, before income tax benefit
$
31,782

 
$
26,882


$
78,103


$
79,620

 
 
 
 
 
 
 
 
Amount of related income tax benefit recognized in earnings
$
6,330

 
$
5,615

 
$
14,888

 
$
16,483



Treasury Stock

In May 2018, our Board of Directors approved an amendment to our share repurchase program that allowed for the Company to repurchase up to an aggregate $1.0 billion of shares of our common stock, excluding transaction costs. In April 2019, our Board of Directors approved a further amendment to this share repurchase program. Under this new amendment, the Company is authorized to repurchase up to an additional $1.2 billion of shares of our common stock, for an aggregate of $2.2 billion, excluding transaction costs. The repurchases are to be effected in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers. No time limit was set for the completion of the program. During the nine months ended September 28, 2019, we repurchased 14.4 million shares for total consideration of $1.0 billion under the program. The shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. As of September 28, 2019, $483 million remains available for repurchase under the amended program.

Dividends
 
On September 10, 2019, our Board of Directors declared a cash dividend of $0.18 per share on our issued and outstanding common stock, which was paid on October 9, 2019 to shareholders of record as of September 25, 2019. On May 29, 2019, our Board of Directors declared a cash dividend of $0.18 per share on our issued and outstanding common stock, which was paid on July 26, 2019 to shareholders of record as of June 18, 2019. In connection with the declaration of such dividends, our non-vested share and share units are entitled to dividend equivalents, which will be payable to the holder subject to, and upon vesting of, the underlying awards. Our outstanding stock options are not entitled to dividend or dividend equivalents.

Accumulated Other Comprehensive Loss, Net (AOCI)

The components of AOCI, net of tax, were as follows:
 
Foreign currency translation adjustment and other
 
Unrealized loss on cash flow hedge
 
Unrealized holding gain (loss) on available-for-sale investments
 
Total
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance at December 29, 2018
$
(102,939
)
 
$
—

 
$
(613
)
 
$
(103,552
)
Other comprehensive income (loss) before reclassifications
2,321

 
—

 
637

 
2,958

Amounts reclassified from AOCI
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
Balance at March 30, 2019
(100,618
)
 
—

 
24

 
(100,594
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(100
)
 
(12,223
)
 
216

 
(12,107
)
Amounts reclassified from AOCI
—

 
(147
)
 
—

 
(147
)
 
 
 
 
 
 
 
 
Balance at June 29, 2019
(100,718
)
 
(12,370
)
 
240

 
(112,848
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(11,679
)
 
(4,135
)
 
17

 
(15,797
)
Amounts reclassified from AOCI
—

 
98

 
(3
)
 
95

 
 
 
 
 
 
 
 
Balance at September 28, 2019
$
(112,397
)
 
$
(16,407
)
 
$
254

 
$
(128,550
)

 
Foreign currency translation adjustment and other
 
Unrealized loss on cash flow hedge
 
Unrealized holding gain (loss) on available-for-sale investments
 
Total
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance at December 30, 2017
$
(72,365
)
 
$
—

 
$
(1,017
)
 
$
(73,382
)
Other comprehensive income (loss) before reclassifications
2,794

 
—

 
(898
)
 
1,896

Amounts reclassified from AOCI
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
Balance at March 31, 2018
(69,571
)
 
—

 
(1,915
)
 
(71,486
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(21,811
)
 
—

 
639

 
(21,172
)
Amounts reclassified from AOCI
—

 
—

 
3

 
3

 
 
 
 
 
 
 
 
Balance at June 30, 2018
(91,382
)
 
—

 
(1,273
)
 
(92,655
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(8,907
)
 
—

 
553

 
(8,354
)
Amounts reclassified from AOCI
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
Balance at September 29, 2018
$
(100,289
)
 
$
—

 
$
(720
)
 
$
(101,009
)


The effects on net earnings of amounts reclassified from AOCI were as follows:
(In thousands)
 
 
 
Three Months Ended
 
Nine Months Ended
AOCI Component
 
Location
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
 
 
Unrealized loss on cash flow hedge
 
Other income, net
 
$
(122
)
 
$
—

 
$
58

 
$
—

 
 
Income taxes
 
24

 
—

 
(9
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Net of tax
 
(98
)
 
—

 
49

 
—

 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gain (loss) on available-for-sale investments

 
Other income, net
 
4

 
—

 
4

 
(4
)
 
 
Income taxes
 
(1
)
 
—

 
(1
)
 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Net of tax
 
3

 
—

 
3

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
Total amount reclassified, net of tax
 
 
 
$
(95
)
 
$
—

 
$
52

 
$
(3
)