STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Abstract]

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

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

	Fiscal Year
	2019			2018			2017
	(in thousands)
Cost of revenue	$	9,038		$	6,285		$	6,509
Selling, general and administrative	48,233			41,061			37,494
Stock-based compensation, before income taxes	57,271			47,346			44,003
Provision for income taxes	(9,465		)	(9,188		)	(13,428		)
Stock-based compensation, net of income taxes	$	47,806		$	38,158		$	30,575

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 29, 2018	1,556		$	86.44
Options granted	454		$	144.42
Options exercised	(442	)	$	78.49
Options canceled	(61	)	$	113.17
Options outstanding as of December 28, 2019	1,507		$	105.19	2.7	$	70,459
Options exercisable as of December 28, 2019	390		$	77.87	1.5	$	28,897
Options expected to vest as of December 28, 2019	1,117		$	114.73	3.1	$	41,562

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
	2019		2018		2017
Expected life (in years)	3.6		3.7		3.6
Expected volatility	27	%	25	%	24	%
Risk-free interest rate	2.4	%	2.4	%	1.6	%
Expected dividend yield	0	%	0	%	0	%

Summary of Restricted Stock and Restricted Stock Unit Activity

The following table summarizes the restricted stock units activity for fiscal year 2019:

	Restricted Stock Units		Weighted Average Grant Date Fair Value
	(in thousands)
December 29, 2018	490		$	93.80
Granted	221		$	142.85
Vested	(185	)	$	89.34
Canceled	(30	)	$	115.10
December 28, 2019	496		$	116.07

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
	2019			2018			2017
	(shares in thousands)
PSUs granted	160			200			198
Weighted average grant date fair value	$	164.47		$	117.89		$	99.96
Key Assumptions:
Expected volatility	25		%	26		%	26		%
Risk-free interest rate	2.4		%	2.4		%	1.3		%
Expected dividend yield	0		%	0		%	0		%
Total shareholder return of 20-trading day average stock price on grant date	17.7		%	2.9		%	17.7		%