Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

v3.8.0.1
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Total Stock-Based Compensation Cost and Associated Income Tax Benefits Related to Stock-Based Compensation Arrangements Recognized and Stock-Based Compensation Costs Included in Inventory
Total stock-based compensation cost and the associated income tax benefits recognized in the Consolidated Statements of Income, and stock-based compensation costs included in inventory in the Consolidated Balance Sheets, are as follows:
(In thousands)
 
2017
 
 
2016
 
2015
Stock-based compensation cost
 
$
81,641

 
 
$
67,762

 
$
73,420

Income tax benefits
 
26,697

 
 
22,870

 
28,090

Stock-based compensation costs included in inventory
 
1,938

 
 
1,332

 
1,345

Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted
The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates a range of assumptions for inputs as follows:
 
 
2017
 
 
2016
 
2015
Expected volatility
 
23% to 30%
 
 
21% to 29%
 
19% to 29%
Weighted average expected volatility
 
24%
 
 
24%
 
22%
Expected term (in years)
 
6.3 to 7.7
 
 
6.3 to 7.6
 
5.9 to 7.5
Weighted average dividend yield
 
2.8%
 
 
2.2%
 
2.0%
Risk-free interest rate
 
0.7% to 2.4%
 
 
0.4% to 1.7%
 
0.1% to 2.3%
Weighted average fair value at date of grant
 
$9.90
 
 
$12.08
 
$13.72
Stock Option Activity
Stock option activity for 2017 is summarized as follows:
 
Number of Shares
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term (Years)
 
Aggregate Intrinsic Value
(In thousands)
 
 
 
 
 
 
 
 
Outstanding, December 2016
14,780,183

 
$
47.38

 
 
 
 
Granted
3,508,940

 
53.68

 
 
 
 
Exercised
(3,342,247
)
 
31.35

 
 
 
 
Forfeited/cancelled
(696,792
)
 
60.90

 
 
 
 
Outstanding, December 2017
14,250,084

 
52.03

 
6.7
 
$
315,861

Exercisable, December 2017
8,705,990

 
47.84

 
5.4
 
$
229,595

RSU Activity
RSU activity for 2017 is summarized as follows:
 
Performance-based
 
Nonperformance-based
 
Number Outstanding
 
Weighted Average
Grant Date
Fair Value
 
Number Outstanding
 
Weighted Average
Grant Date
Fair Value
 
 
 
 
 
 
 
 
Outstanding, December 2016
1,494,625

 
$
63.68

 
298,913

 
$
52.76

Granted
615,937

 
53.69

 
209,056

 
57.49

Issued as Common Stock
(524,488
)
 
56.86

 
(155,013
)
 
41.15

Forfeited/cancelled
(81,523
)
 
59.04

 
(17,863
)
 
59.50

Outstanding, December 2017
1,504,551

 
62.22

 
335,093

 
60.72

Vested, December 2017
853,740

 
66.14

 
17,964

 
53.47

Restricted Stock Activity
Restricted stock activity for 2017 is summarized below:
 
Nonvested Shares Outstanding
 
Weighted Average Grant Date Fair Value
 
 
 
 
Nonvested shares, December 2016
622,692

 
$
53.45

Granted
423,076

 
56.52

Dividend equivalents
17,848

 
61.56

Vested
(262,201
)
 
47.13

Forfeited
(116,452
)
 
59.13

Nonvested shares, December 2017
684,963

 
57.01