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Shareholders’ Deficit (Tables)

12 Months Ended

Dec. 28, 2019

Schedule of Stock-Based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):

	2019		2018		2017
Stock awards	$	14,265	$	8,930	$	13,419
Stock options		2,392		2,482		2,344
Total stock-based compensation expense⁽¹⁾		16,657		11,412		15,763
Income tax benefit		3,998		2,750		5,249
Total stock-based compensation expense, net of tax	$	12,659	$	8,662	$	10,514

⁽¹⁾	^{Decrease in 2018 stock-based compensation expense reflects the cumulative impact of the change in the expected achievements of certain performance targets.}

Summary of Stock Option Activity

A summary of our stock option activity was as follows (in thousands, except per share amounts and years):

	Stock Options			Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽¹⁾
Balance at December 29, 2018		1,322		$	22.64		5.9	$	13,009
Granted		141			45.27
Exercised		(381	)		18.88
Canceled/Forfeited		(14	)		30.13
Outstanding at December 28, 2019		1,068		$	26.87		6.0	$	24,274
Exercisable at December 28, 2019		772		$	22.88		5.1	$	20,612
Vested and expected to vest at December 28, 2019		1,046		$	26.70		6.0	$	23,940

⁽¹⁾	^{Aggregate intrinsic value includes only those options where the current share price is equal to or greater than the share price on the date of grant.}

Other Information Pertaining to Options

Other information pertaining to options was as follows (in thousands, except per share amounts):

	2019		2018		2017
Weighted-average grant date fair value of stock options granted	$	18.97	$	13.96	$	10.33
Total intrinsic value (at exercise) of stock options exercised	$	9,636	$	3,459	$	3,586

Assumptions Used to Calculate Fair Value of Options Granted Using Black-Scholes-Merton Option-Pricing Model

The assumptions used to calculate the fair value of options granted using the Black-Scholes-Merton option-pricing model were as follows:

Valuation Assumptions	2019			2018			2017
Expected dividend yield		0	%		0	%		0	%
Expected volatility		43	%		43	%		46	%
Risk-free interest rate		2.2	%		2.7	%		2.0	%
Expected term (in years)		5.4			5.0			5.1

Stock Award Activity

Stock award activity was as follows (in thousands, except per share amounts):

	Time- Based Stock Awards			Weighted-Average Grant Date Fair Value		Performance- and Market-Based Stock Awards			Weighted-Average Grant Date Fair Value
Outstanding at December 29, 2018		383		$	28.66		1,061		$	23.91
Granted		172			44.60		168			46.70
Vested		(192	)		25.91		(304	)		19.50
Canceled/Forfeited		(33	)		35.26		(333	)		22.75
Outstanding at December 28, 2019		330		$	38.09		592		$	33.30

Assumptions Used to Calculate Fair Value of Performance-based Stock Awards Using Monte Carlo Simulation Model

The assumptions used to calculate the fair value of the 2018 and 2017 performance-based stock awards with a market condition, using the Monte Carlo simulation model, were as follows:

Valuation Assumptions	2019	2018			2017
Expected dividend yield	NA		0	%		0	%
Expected volatility	NA		43	%		46	%
Risk-free interest rate	NA		2.6	%		1.5	%

Schedule of Repurchase of Common Stock

Repurchases of our common stock were as follows (in thousands):

	2019		2018		2017
Amount repurchased under Board-approved share repurchase program	$	145,900	$	279,101	$	150,000
Amount repurchased in connection with the vesting of employee restricted stock grants		9,673		3,344		5,245
Total amount repurchased (based on trade dates)	$	155,573	$	282,445	$	155,245

Net Income per Common Share

The components of basic and diluted net income per share were as follows (in thousands, except per share amounts):

	2019		2018		2017
Net income	$	81,845	$	69,539	$	65,077
Reconciliation of weighted-average shares outstanding:
Basic weighted-average shares outstanding		29,472		35,256		41,212
Dilutive effect of stock-based awards		883		909		873
Diluted weighted-average shares outstanding		30,355		36,165		42,085
Net income per share – basic	$	2.78	$	1.97	$	1.58
Net income per share – diluted	$	2.70	$	1.92	$	1.55