Stock-Based Compensation (Tables)

12 Months Ended

Dec. 28, 2018

Share-based Compensation [Abstract]

Share-Based Compensation, Restricted Stock Units Award Activity

The number of unvested restricted stock unit awards outstanding as of December 28, 2018 is as follows (1):

	Number of awards outstanding			Weighted-average grant date fair value		Weighted-average remaining contractual term (years)		Aggregate intrinsic value (in thousands) (2)
Balance as of December 29, 2017		1,185,184		$	22.96
Awards granted		421,463			40.61
Awards vested		(571,257	)		27.28
Awards forfeited		(851	)		24.60
Balance as of December 28, 2018		1,034,539		$	27.76		1.6	$	51,644

(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 December 28, 2018 was $49.92.

Stock Option Activity

Option activity is as follows (1):

			Weighted-		Weighted-average
	Number		average		remaining		Aggregate
	of shares		exercise		contractual		intrinsic value
	outstanding		price		term (years)		(in thousands)
Balance as of December 29, 2017		680,000	$	18.39
Options granted		98,000		37.45
Options forfeited and expired		-		-
Options exercised		-		-
Balance as of December 28, 2018		778,000	$	20.80		5.73	$	22,659
Exercisable at December 28, 2018		512,000	$	15.76		4.47	$	17,488

(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 2018, 2017 and 2016 are as follows:

	Stock Option Plan
	2018			2017			2016
Expected term (in years)		5.9			5.9			6.0
Risk-free interest rate		2.74	%		2.11	%		1.28	%
Volatility		23	%		24	%		25	%
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 2018, 2017 and 2016 is as follows:

	2018		2017		2016
(In thousands)
Compensation and related expenses:
Restricted stock units	$	15,561	$	14,809	$	12,225
Stock option grants		897		749		569
Sub-total		16,458		15,558		12,794
General and administrative expenses:
Restricted stock units		535		597		539
Sub-total		535		597		539
Total stock-based compensation expense	$	16,993	$	16,155	$	13,333
Income tax benefit	$	4,467	$	6,331	$	5,214