Stock-Based Compensation (Tables)

12 Months Ended

Jan. 02, 2015

Share-Based Compensation, Restricted Stock Units Award Activity

The number of unvested restricted stock unit awards outstanding as of January 2, 2015 is as follows⁽¹⁾:

					Weighted-average
	Number		Weighted-average		remaining		Aggregate
	of awards		grant date		contractual		intrinsic value
	outstanding		fair value		term (years)		(in thousands)⁽²⁾


Balance as of January 3, 2014		478,347	$	42.14
Awards granted		189,174		74.58
Awards vested		(221,599)		48.29
Awards forfeited		(2,532)		59.07

Balance as of January 2, 2015		443,390	$	52.81	1.6	$	35,954

Expected to vest as of January 2, 2015		437,319	$	52.75	1.5	$	35,462

⁽¹⁾ Does not include employee stock purchase plans or stock option plans.

(2)	The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market value as of January 2, 2015 was $81.09.

Stock Option Activity

Option activity is as follows⁽¹⁾:

					Weighted-average
	Number		Weighted-average		remaining		Aggregate
	of awards		grant date		contractual		intrinsic value
	outstanding		fair value		term (years)		(in thousands)⁽²⁾

Balance as of January 3, 2014		217,000	$	32.06
Options granted		22,500		70.80
Options forfeited and expired		-		-
Options exercised		(42,000)		22.86

Balance as of January 2, 2015		197,500	$	38.43		5.85	$	8,426
Vested and expected to vest as of January 2, 2015		195,507	$	38.22		5.83	$	8,382

Exercisable at January 2, 2015		134,375	$	30.35		4.83	$	6,819

⁽¹⁾ Does not include restricted stock or employee stock purchase plans.

The Assumptions Used to Value Option Grants

The assumptions used to value option grants for the fiscal years ended January 2, 2015, January 3, 2014 and December 28, 2012 are as follows:

	Stock Option Plan
	2014			2013			2012

Expected life (in years)		6.1			6.4			6.4
Risk-free interest rate		1.8	%		1.4	%		1.4	%
Volatility		32	%		36	%		39	%
Dividend yield		0	%		0	%		0	%

Stock-Based Compensation Expense Recognized in Consolidated Statements of Income

The amount of stock-based compensation expense and the related income tax benefit recognized in the Company’s consolidated statements of income for the fiscal years ended January 2, 2015, January 3, 2014 and December 28, 2012 is as follows:

(In thousands)	2014		2013		2012

Compensation and related expenses:
Restricted stock units	$	11,889	$	11,680	$	11,345
Stock option grants		689		1,077		639
Sub-total		12,578		12,757		11,984

General and administrative expenses:
Restricted stock units		501		411		394
Sub-total		501		411		394
Total stock-based compensation expense	$	13,079	$	13,168	$	12,378

Income tax benefit	$	5,141	$	5,195	$	4,844