STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Financial Statement Line Items in Which Stock-based Compensation is Reflected

The following table provides the financial statement line items in which stock-based compensation is reflected:

	Fiscal Year
	2017			2016			2015
	(in thousands)
Cost of revenue (excluding amortization of intangible assets)	$	6,509		$	6,508		$	6,511
Selling, general and administrative	37,494			37,134			33,611
Stock-based compensation, before income taxes	44,003			43,642			40,122
Provision for income taxes	(13,428		)	(15,548		)	(14,225		)
Stock-based compensation, net of income taxes	$	30,575		$	28,094		$	25,897

Summary of Stock Option Activity

The following table summarizes stock option activity under the Company’s stock-based compensation plans:

	Number of shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Options outstanding as of December 31, 2016	1,970		$	60.82
Options granted	603		$	88.35
Options exercised	(742	)	$	52.41
Options canceled	(57	)	$	76.78
Options outstanding as of December 30, 2017	1,774		$	73.19	3.2	$	64,274
Options exercisable as of December 30, 2017	469		$	56.19	2.3	$	24,958
Options expected to vest as of December 30, 2017	1,304		$	79.30	3.5	$	39,315

Weighted-average Assumptions

The fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Fiscal Year
	2017		2016		2015
Expected life (in years)	3.6		3.6		3.6
Expected volatility	24	%	25	%	28	%
Risk-free interest rate	1.6	%	1.2	%	1.1	%
Expected dividend yield	0	%	0	%	0	%

Summary of Restricted Stock and Restricted Stock Unit Activity

The following table summarizes the restricted stock and restricted stock units activity for fiscal year 2017:

	Restricted Stock and Restricted Stock Units		Weighted Average Grant Date Fair Value
	(in thousands)
December 31, 2016	515		$	67.62
Granted	253		$	88.86
Vested	(223	)	$	60.82
Canceled	(31	)	$	77.43
December 30, 2017	514		$	80.45

Information about PSUs and Related Weighted-Average Assumptions

The Company utilizes a Monte Carlo simulation valuation model to value these awards. Information pertaining to the Company’s PSUs and the related estimated weighted-average assumptions used to calculate their fair value were as follows:

	Fiscal Year
	2017			2016			2015
PSUs granted	197,645			190,628			148,900
Weighted average per share grant date fair value	$	99.96		$	80.38		$	88.62
Key Assumptions:
Expected volatility	26		%	24		%	23		%
Risk-free interest rate	1.34		%	0.91		%	0.96		%
Expected dividend yield	0		%	0		%	0		%
20 trading day average stock price on grant date	17.7		%	(4.8		)%	20.6		%