Stock-Based Compensation

The Company established the Omnibus Incentive Plan to award stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, performance shares and cash to its employees, non-employee directors and employees of its subsidiaries to promote the interests of the Company, incent performance and retention of employees.

Stock Options

The exercise price of each stock option equals the closing market price of the Company’s stock on the date of grant. Options granted vest ratably over three years and can be exercised over a term of 10 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during any of the periods presented.

A summary of the changes in stock options outstanding to the Company’s employees under the Omnibus Incentive Plan is presented below:



	Shares		Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Term (Years)
Options outstanding at January 3, 2015	7,292		$	5.92	$	158,469	3.40
Exercised	(4,540	)	6.10

Options outstanding at January 2, 2016	2,752		$	5.62	$	65,531	2.88
Exercised	(477	)	5.90

Options outstanding at December 31, 2016	2,275		$	5.56	$	36,438	2.20
Exercised	(736	)	6.22

Options outstanding and exercisable at December 30, 2017	1,539		$	5.24	$	24,108	1.76

The total intrinsic value of options that were exercised during 2017, 2016 and 2015 was $10,821, $7,465 and $105,899 respectively.

Stock Unit Awards

Restricted stock units (RSUs) of the Company’s stock are granted to certain Company non-employee directors and employees to incent performance and retention over periods of one to four years, respectively. Upon vesting, the RSUs are converted into shares of the Company’s common stock on a one-for-one basis and issued to the grantees. Some RSUs which have been granted under the Omnibus Incentive Plan vest upon continued future service to the Company, while others also have a performanced-based vesting feature. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the grantees provide the requisite service to the Company. A summary of the changes in the restricted stock unit awards outstanding under the Omnibus Incentive Plan is presented below:



	Shares		Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Term (Years)
Nonvested share units outstanding at January 3, 2015	3,418		$	16.12	$	94,521	1.71
Granted — non-performanced based	516		31.06
Granted — performanced based	828		23.50
Vested	(1,816	)	11.45
Forfeited	(113	)	16.87

Nonvested share units outstanding at January 2, 2016	2,833		$	23.99	$	83,381	1.78
Granted — non-performanced based	748		23.44
Granted — performanced based	511		23.64
Vested	(1,525	)	19.47
Forfeited	(47	)	23.38

Nonvested share units outstanding at December 31, 2016	2,520		$	26.46	$	54,356	2.11
Granted — non-performanced based	628		21.22
Granted — performanced based	590		23.04
Vested	(991	)	26.74
Forfeited	(81	)	26.81

Nonvested share units outstanding at December 30, 2017	2,666		$	24.36	$	55,741	2.00

The total fair value of shares vested during 2017, 2016 and 2015 was $26,510, $29,705 and $20,784, respectively. Certain participants elected to defer receipt of shares earned upon vesting.

In addition to granting RSUs that vest solely upon continued future service to the Company, the Company also grants performanced-based restricted stock units where the number of shares of the Company’s common stock that will be received upon vesting range from 0% to 200% of the number of units granted based on the Company’s achievement of certain performance metrics. These performanced-based stock awards, which are included in the table above, represent awards that are earned based on future performance and service. As reported in the above table, the number of performanced-based restricted stock units granted each year represents the initial units granted on the date of grant plus any additional units that were earned based on the final achievement of the respective performance thresholds.

For all share-based payments under the Omnibus Incentive Plan, during 2017, 2016 and 2015, the Company recognized total compensation expense of $23,224, $30,617 and $29,154 and recognized a deferred tax benefit of $6,085, $11,754 and $11,382, respectively.

At December 30, 2017, there was $10,037 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, of which $6,837, $2,456, and $744 is expected to be recognized in 2018, 2019, and 2020, respectively. The Company satisfies the requirement for common shares for share-based payments to employees pursuant to the Omnibus Incentive Plan by issuing newly authorized shares. The Omnibus Incentive Plan authorized 63,220 shares for awards of stock options and restricted stock units, of which 9,533 were available for future grants as of December 30, 2017.