Share-Based Awards

9 Months Ended

Sep. 29, 2023

Share-Based Payment Arrangement, Additional Disclosure [Abstract]

Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices):


	Option Shares	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
Outstanding, December 30, 2022	10,265	$	44.40	7,793	$	37.22
Granted	1,114	71.45
Exercised	(1,191)	30.89
Canceled	(82)	66.15
Outstanding, September 29, 2023	10,106	$	48.79	7,439	$	41.10

The Company recognized year-to-date share-based compensation of $25.5 million in 2023 and $17.9 million in 2022. As of September 29, 2023, there was $20.4 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 2.6 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results:


	Nine Months Ended
	September 29, 2023			September 30, 2022
Expected life in years	6.7			7.3
Interest rate	4.0		%	1.9		%
Volatility	26.3		%	25.5		%
Dividend yield	1.3		%	1.2		%
Weighted average fair value per share	$	21.76		$	19.06

Under the Company’s Employee Stock Purchase Plan, the Company issued 323,000 shares in 2023 and 316,000 shares in 2022. The fair value of the employees’ purchase rights under this plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option pricing model with the following assumptions and results:


	Nine Months Ended
	September 29, 2023			September 30, 2022
Expected life in years	1.0			1.0
Interest rate	5.1		%	0.9		%
Volatility	26.4		%	20.5		%
Dividend yield	1.4		%	1.2		%
Weighted average fair value per share	$	18.04		$	16.01