Share-Based Compensation (Tables)

12 Months Ended

Dec. 29, 2019

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

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock option activity during 2019:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years	Aggregate Intrinsic Value
Outstanding at December 30, 2018	12,677		$	11.86
Granted	2,622		19.71
Exercised	(2,934	)	9.75
Forfeited and/or expired	(428	)	16.77
Outstanding at December 29, 2019	11,937		$	13.92	6.77	$	98,316
Vested or expected to vest at December 29, 2019	11,814		$	13.87	6.75	$	97,896
Exercisable at December 29, 2019	7,482		$	11.05	5.44	$	83,113

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology

The weighted average grant date fair value of stock options was determined using the following assumptions:

	2019		2018		2017
Risk-free interest rate	1.57	%	2.77	%	1.94	%
Expected option life in years	4.50		5.62		5.62
Expected volatility	23.55	%	24.27	%	23.88	%
Expected dividend yield	2.03	%	1.84	%	1.82	%

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes activity of Restricted Shares during 2019:

	Number of Restricted Shares		Weighted Average Grant Date Fair Value
Non-vested at December 30, 2018	1,321		$	13.65
Granted	358		19.51
Vested	(521	)	11.45
Forfeited	(87	)	15.78
Non-vested at December 29, 2019	1,071		$	16.46

Schedule of Share-based Payment Award, Performance Share Awards, Valuation Assumptions

The input variables are noted in the table below:

	2019		2018		2017
Risk-free interest rate	2.51	%	2.38	%	1.44	%
Expected life in years	3.00		3.00		3.00
Expected volatility	23.19	%	24.97	%	25.06	%
Expected dividend yield (a)	0.00	%	0.00	%	0.00	%

_______________

(a)

The Monte Carlo method assumes a reinvestment of dividends.

Schedule of Nonvested Performance-based Units Activity

The following table summarizes activity of performance shares at Target during 2019:

	Performance Condition Awards				Market Condition Awards
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Non-vested at December 30, 2018	598		$	12.32	518		$	14.22
Granted	155		17.85		130		21.36
Dividend equivalent units issued (a)	10		—		8		—
Vested (b)	(278	)	9.44		(256	)	10.25
Forfeited	(46	)	16.13		(38	)	19.56
Non-vested at December 29, 2019	439		$	15.75	362		$	19.09

_______________

(a) Dividend equivalent units are issued in lieu of cash dividends for non-vested performance shares. There is no weighted average fair value associated with dividend equivalent units.

(b)

Performance condition awards and market condition awards exclude the vesting of an additional 169 and 157 shares, respectively, which resulted from the performance of the awards exceeding Target.

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Total share-based compensation and the related income tax benefit recognized in the Company’s consolidated statements of operations were as follows:

	Year Ended
	2019			2018			2017
Stock options	$	7,685		$	7,172		$	6,923
Restricted shares (a)	5,762			6,030			5,778
Performance shares:
Performance condition awards	2,195			1,491			1,764
Market condition awards	2,023			1,987			1,533
Modifications, net	1,011			1,238			4,930
Share-based compensation	18,676			17,918			20,928
Less: Income tax benefit	(2,990		)	(3,418		)	(4,985		)
Share-based compensation, net of income tax benefit	$	15,686		$	14,500		$	15,943

_______________

(a)

2019, 2018 and 2017 include $396, $319 and $197, respectively, related to retention awards in connection with the Company’s G&A realignment plan, which is included in “Reorganization and realignment costs.” See Note 5 for further information.