Stock-Based Compensation (Tables)

12 Months Ended

Jan. 01, 2016

Share-Based Compensation, Restricted Stock Units Award Activity

The number of unvested restricted stock unit awards outstanding as of January 1, 2016 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 2, 2015		886,780	$	26.40
Awards granted		331,191		43.76
Awards vested		(428,878)		29.72
Awards forfeited		(9,116)		32.25

Balance as of January 1, 2016		779,977	$	31.88		1.5	$	38,960

Expected to vest as of January 1, 2016		769,883	$	31.94		1.5	$	38,456

⁽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 1, 2016 was $49.95.

Stock Option Activity

Option activity is as follows⁽¹⁾:

					Weighted-		Aggregate
			Weighted-		average		intrinsic
	Number		average		remaining		value
	of shares		exercise		contractual		(in
	outstanding		price		term (years)		thousands)

Balance as of January 2, 2015		395,000	$	19.21
Options granted		40,000		44.20
Options forfeited and expired		-		-
Options exercised		(150,000)		12.18

Balance as of January 1, 2016		285,000	$	26.42		6.59	$	6,706
Vested and expected to vest as of January 1, 2016		281,263	$	26.28		6.57	$	6,657

Exercisable at January 1, 2016		171,250	$	20.89		5.65	$	4,977

⁽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 1, 2016, January 2, 2015 and January 3, 2014 are as follows:

	Stock Option Plan
	2015			2014			2013

Expected life (in years)		6.1			6.1			6.4
Risk-free interest rate		1.69	%		1.8	%		1.4	%
Volatility		27	%		32	%		36	%
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 1, 2016, January 2, 2015 and January 3, 2014 is as follows:

	2015		2014		2013
(In thousands)
Compensation and related expenses:
Restricted stock units	$	11,907	$	11,889	$	11,680
Stock option grants		552		689		1,077
Sub-total		12,459		12,578		12,757

General and administrative expenses:
Restricted stock units		500		501		411
Sub-total		500		501		411
Total stock-based compensation expense	$	12,959	$	13,079	$	13,168

Income tax benefit	$	5,068	$	5,141	$	5,195