STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 25, 2021

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
	2021		2020		2019
	(in thousands)
Cost of revenue	$	13,087	$	10,636	$	9,038
Selling, general and administrative	58,387		45,705		48,233
Stock-based compensation, before income taxes	71,474		56,341		57,271
Provision for income taxes	(10,299)		(8,130)		(9,465)
Stock-based compensation, net of income taxes	$	61,175	$	48,211	$	47,806

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 26, 2020	1,216	$	129.34
Options granted	160	$	337.13
Options exercised	(431)	$	105.80
Options canceled	(28)	$	177.46
Options outstanding as of December 25, 2021	917	$	175.24	4.7	$	177,834
Options exercisable as of December 25, 2021	286	$	127.69	2.6	$	69,111
Options expected to vest as of December 25, 2021	631	$	196.81	5.6	$	108,723

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
	2021		2020		2019
Expected life (in years)	6.0		6.0		3.6
Expected volatility	32	%	30	%	27	%
Risk-free interest rate	1.0	%	0.4	%	2.4	%
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 2021:

	Restricted Stock Units	Weighted Average Grant Date Fair Value
	(in thousands)
December 26, 2020	466	$	144.03
Granted	103	$	340.42
Vested	(173)	$	131.93
Canceled	(23)	$	194.61
December 25, 2021	373	$	197.45

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
	2021			2020			2019
	(shares in thousands)
PSUs granted	64			98			160
Weighted average grant date fair value	$	407.76		$	209.67		$	164.47
Key assumptions:
Expected volatility	37		%	35		%	25		%
Risk-free interest rate	0.2		%	0.2		%	2.4		%
Expected dividend yield	0		%	0		%	0		%
Total shareholder return of 20-trading day average stock price on grant date	39.9		%	21.7		%	17.7		%