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Stock-Based Compensation
 12 Months Ended
Dec. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
 
Equity Plans: The Company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, and other stock rights to employees and directors. During the fiscal year 2023, the Company designated an additional 0.7 million shares for the Company's equity-based compensation plans. As of December 30, 2023, there were 1.2 million shares available for issuance of future awards under the Company’s equity-based compensation plans.
 
Stock options generally vest over a three-year period and are exercisable over either a seven or ten-year period commencing from the date of the grant. Restricted shares and share units granted by the Company generally vest over three years. Stock options and restricted share units may have accelerated vesting upon meeting certain qualified conditions.

The following table provides a reconciliation of outstanding stock options for the fiscal year ended December 30, 2023.
 
 Shares Under
Option		Weighted
Average
Price		Weighted
Average
Remaining
Contract Life
(Years)		Aggregate
Intrinsic
Value
(000’s)
Outstanding December 31, 2022617,856 $176.79 
Granted87,633 240.94 
Exercised(97,941)146.32 
Forfeited(9,191)166.63 
Outstanding December 30, 2023598,357 191.33 3.9$45,627 
Exercisable December 30, 2023434,678 172.69 3.241,246 
 
The following table provides a reconciliation of non-vested restricted share and share unit awards ("RSU") for the fiscal year ended December 30, 2023.
 
 SharesWeighted Average
Grant-Date Fair Value
Nonvested December 31, 2022168,286 $213.65 
Granted93,310 236.56 
Vested(88,760)193.21 
Forfeited(12,338)229.09 
Nonvested December 30, 2023160,498 237.09 
 
The total intrinsic value of options exercised during 2023, 2022, and 2021 was $12.2 million, $3.7 million, and $23.8 million, respectively. The total fair value of the vested RSU shares was $19.8 million, $15.4 million, and $18.9 million for 2023, 2022,
and 2021, respectively. The total amount of share-based liabilities paid was $2.2 million, $1.1 million and $1.3 million for 2023, 2022, and 2021, respectively.
 
The Company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At December 30, 2023, the unrecognized compensation cost for options and restricted shares was $22.1 million before tax, and will be recognized over a weighted average period of 1.8 years. Compensation cost included as a component of cost of sales, research and development and selling, general, and administrative expenses for all equity compensation plans discussed above was $25.7 million, $24.6 million, and $21.4 million for 2023, 2022, and 2021, respectively. The total related income tax benefit recognized in the Consolidated Statements of Net Income was $3.8 million, $3.5 million and $3.3 million for 2023, 2022, and 2021, respectively.
 
The Company uses the Black-Scholes option valuation model to determine the fair value of stock option awards granted. The weighted average fair value of and related assumptions for options granted are as follows:
 
 202320222021
Weighted average fair value of options granted$77.40$70.39$74.04
Assumptions:
Risk-free interest rate3.67%2.83%0.66%
Expected dividend yield1.00%0.92%0.72%
Expected stock price volatility36.0%35.0%35.0%
Expected life of options (years)4.44.44.4
 
Expected volatilities are based on the historical volatility of the Company’s stock price. The expected life of options is based on historical data for options granted by the Company. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption. Historical nonvested forfeiture information is the basis for the forfeiture rate assumptions.

The fair value of RSU is determined based on the Company's stock price on the grant date reduced by the present value of expected dividends through the vesting period.

Preferred Stock: The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board may fix by resolution.
 
Share Repurchase Program

On April 28, 2021, the Company announced that the Board of Directors authorized a three-year program to repurchase up to $300 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024. There are $300 million in the aggregate of shares available for purchase under the program as of December 30, 2023.
During the fiscal years 2023, 2022 and 2021, the Company did not repurchase any shares of its common stock.