(12) STOCK-BASED COMPENSATION

The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and bonuses of common stock. At December 29, 2018, 1,418,611 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. The Company’s policy is to issue shares upon exercise of stock options or vesting of restricted stock units or issuance of restricted stock from treasury shares held by the Company.

Under the stock option plans, the exercise price of each option equals the market price at the time of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three years or on the fifth anniversary of the grant. Expiration of grants is seven years from the date of grant. The Company recorded $4,064, $5,137 and $5,782 of compensation expense (included in selling, general and administrative expenses) in the 2018, 2017 and 2016 fiscal years, respectively. The associated tax benefits recorded in the 2018, 2017 and 2016 fiscal years was $1,016, $1,952 and $2,197, respectively.

At December 29, 2018, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.44 years, was approximately $5,940.

The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2018, 2017 and 2016 was estimated using the following assumptions:



	2018		2017		2016
Expected volatility	33.39	%	33.76	%	33.88	%
Risk-free interest rate	2.67	%	2.12	%	1.83	%
Expected life from vesting date	3.0 yrs		3.0 yrs		3.0 yrs
Dividend yield	1.07	%	1.17	%	1.13	%

(12) STOCK-BASED COMPENSATION (Continued)

Following is a summary of the stock option activity during 2016, 2017 and 2018:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 26, 2015	849,609		$	117.42
Granted	85,092		151.37
Exercised	(109,893	)	101.69
Forfeited	(31,635	)	129.36
Outstanding at December 31, 2016	793,173		$	122.77	4.78	$	16,640
Options vested or expected to vest at December 31, 2016	774,139		$	124.18	4.75	16,200
Options exercisable at December 31, 2016	469,844		$	123.75	3.96	9,056

The weighted average per share fair value of options granted during 2016 was $40.00.



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2016	793,173		$	122.77
Granted	67,965		164.35
Exercised	(284,574	)	121.92
Forfeited	(5,942	)	104.26
Outstanding at December 30, 2017	570,622		$	128.34	4.66	$	21,806
Options vested or expected to vest at December 30, 2017	558,114		$	128.00	4.63	21,517
Options exercisable at December 30, 2017	351,794		$	123.90	3.94	15,005

The weighted average per share fair value of options granted during 2017 was $43.68.



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 30, 2017	570,622		$	128.34
Granted	105,135		112.08
Exercised	(63,717	)	106.26
Forfeited	(33,627	)	129.52
Outstanding at December 29, 2018	578,413		$	127.74	4.35	$	909
Options vested or expected to vest at December 29, 2018	565,952		$	127.84	4.30	909
Options exercisable at December 29, 2018	405,128		$	126.61	3.47	909

The weighted average per share fair value of options granted during 2018 was $30.48.

(12) STOCK-BASED COMPENSATION (Continued)

Following is a summary of the status of stock options outstanding at December 29, 2018:



Outstanding and Exercisable By Price Range
Options Outstanding					Options Exercisable
Exercise Price Range	Number	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number	Weighted Average Exercise Price
$104.47 - 114.11	277,757	5.09 years	$	107.39	171,607	$	104.47
$120.91 - 136.42	114,910	2.25 years	134.02		114,627	134.01
$142.67 - 164.35	185,746	4.55 years	154.31		118,894	151.44
	578,413				405,128

In accordance with shareholder-approved plans, the Human Resource Committee of the Board of Directors may grant stock under various stock‑based compensation arrangements, including restricted stock awards, restricted stock units, and stock issued in lieu of cash bonuses. Under such arrangements, stock is issued without direct cost to the employee. The restricted stock units are settled in Company stock when the restriction period ends. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. During fiscal 2018, 2017 and 2016, the Company granted restricted stock units to directors and certain management employees as follows (which are not included in the above stock plan activity tables):



	2018		2017		2016
Shares granted	88,127		62,160		58,961
Weighted‑average per share price on grant date	$	114.89	$	163.18	$	150.48
Recognized compensation expense	$	6,328	$	5,569	$	4,069

At December 29, 2018 the amount of deferred stock‑based compensation granted, to be recognized over a weighted‑average period of 1.82 years, was approximately $17,754.