the consolidated financial statements, the Company settled all exercises of stock options and vesting of restricted shares, including performance shares, with treasury shares.

The Company’s current outstanding stock options have maximum contractual terms of 10 years and vest ratably over three years or cliff vest after three years. The exercise price of options granted is equal to the market price of the Company’s common stock on the date of grant. The fair value of stock options on the date of grant is calculated using the Black-Scholes Model. The aggregate intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price.


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years	Aggregate Intrinsic Value
Outstanding at January 2, 2022	9,858	$	18.44
Granted	1,562	21.40
Exercised	(414)	13.82
Forfeited and/or expired	(116)	21.93
Outstanding at January 1, 2023	10,890	$	19.00	6.60	$	41,181
Vested or expected to vest at January 1, 2023	10,770	$	18.97	6.57	$	41,084
Exercisable at January 1, 2023	7,844	$	17.73	5.69	$	39,116

The total intrinsic value of options exercised during 2022, 2021 and 2020 was $2,979, $39,522 and $28,111, respectively. The weighted average grant date fair value of stock options granted during 2022, 2021 and 2020 was $6.33, $6.33 and $6.02, respectively.


	2022		2021		2020
Risk-free interest rate	3.00	%	0.70	%	0.22	%
Expected option life in years	4.75		4.50		4.50
Expected volatility	37.82	%	38.00	%	38.02	%
Expected dividend yield	2.34	%	2.03	%	1.72	%

The risk-free interest rate represents the U.S. Treasury zero-coupon bond yield correlating to the expected life of the stock options granted. The expected option life represents the period of time that the stock options granted are expected to be outstanding based on historical exercise trends for similar grants. The expected volatility is based on the historical market price volatility of the Company over a period equivalent to the expected option life. The expected dividend yield represents the Company’s annualized average yield for regular quarterly dividends declared prior to the respective stock option grant dates.

The Black-Scholes Model has limitations on its effectiveness including that it was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable and that the model requires the use of highly subjective assumptions, such as expected stock price volatility. Employee stock option awards have characteristics significantly different from those of traded options and changes in the subjective input assumptions can materially affect the fair value estimates.

The Company grants RSAs and RSUs, which primarily cliff vest after one to three years, respectively. For the purposes of our disclosures, the term “Restricted Shares” applies to RSAs and RSUs collectively unless otherwise noted. The fair value of Restricted Shares granted is determined using the fair market value of the Company’s common stock on the date of grant, as set forth in the applicable plan document.


	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 2, 2022	1,094	$	20.09
Granted	429	20.34
Vested	(279)	20.38
Forfeited	(58)	21.65
Non-vested at January 1, 2023	1,186	$	20.03

The Company grants performance-based awards to certain officers and key employees. The vesting of these awards is contingent upon meeting one or more defined operational or financial goals (a performance condition) or common stock share prices (a market condition). The quantity of shares awarded ranges from 0% to 200% of “Target,” as defined in the award agreement as the midpoint number of shares, based on the level of achievement of the performance and market conditions.

The fair values of the performance condition awards granted in 2022, 2021 and 2020 were determined using the fair market value of the Company’s common stock on the date of grant, as set forth in the applicable plan document. Share-based compensation expense recorded for performance condition awards is reevaluated at each reporting period based on the probability of the achievement of the goal.

The fair value of market condition awards granted in 2022, 2021 and 2020 were estimated using the Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that the market conditions will be achieved and is applied to the trading price of our common stock on the date of grant.


	2022		2021		2020
Risk-free interest rate	1.71	%	0.20	%	1.38	%
Expected life in years	3.00		3.00		3.00
Expected volatility	52.33	%	49.47	%	23.26	%
Expected dividend yield (a)	0.00	%	0.00	%	0.00	%

Share-based compensation expense is recorded ratably for market condition awards during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met.


	Performance Condition Awards			Market Condition Awards
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Non-vested at January 2, 2022	505	$	20.48	422	$	24.52
Granted	207	21.94		148	30.70
Dividend equivalent units issued (a)	14	21.67		11	27.37
Vested	(75)	17.86		(99)	21.37
Forfeited	(67)	17.86		(20)	21.38
Non-vested at January 1, 2023	584	$	21.67	462	$	27.38

(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.

The total fair value of performance condition awards that vested in 2022, 2021 and 2020 was $1,712, $1,784 and $3,447, respectively. The total fair value of market condition awards that vested in 2022, 2021 and 2020 was $2,253, $3,498 and $4,910, respectively.

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


	Year Ended
	2022		2021		2020
Stock options	$	9,072	$	9,256	$	8,499
Restricted shares (a)	7,106		6,677		6,507
Performance shares:
Performance condition awards	4,431		2,861		782
Market condition awards	3,929		3,225		2,521
Modifications, net	—		—		621
Share-based compensation	24,538		22,019		18,930
Less: Income tax benefit	(3,043)		(2,790)		(2,958)
Share-based compensation, net of income tax benefit	$	21,495	$	19,229	$	15,972

(a)2021 and 2020 include $19 and $213, 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.

As of January 1, 2023, there was $30,038 of total unrecognized share-based compensation, which will be recognized over a weighted average amortization period of 1.98 years.