17.Compensation Plans

Stock Options

The grant-date fair value of employee stock options and similar instruments is estimated using the Black-Scholes option-pricing model with the following assumptions for grants issued during the thirteen weeks ended December 26, 2015 and December 27, 2014:

	Thirteen weeks ended
	December 26, 2015			December 27, 2014
Average expected life	5.5 years			5.5 years
Average volatility	60		%	57		%
Dividend yield	2.45		%	0.83		%
Risk-free interest rate	1.68		%	1.62		%
Weighted average grant date fair value	$	23.50		$	67.11

Restricted Stock Units, Performance Stock Units and Other Awards

The Company awards Company Restricted Stock Units and PSUs to eligible employees and non-employee Directors (each, a “Grantee”) which entitle a Grantee to receive shares of the Company’s common stock. Company Restricted Stock Units and PSUs are awards denominated in units that are settled in shares of the Company’s common stock upon vesting. In general, employee Company Restricted Stock Units vest over a period of three or four years based on a Grantee’s continuing employment and non-employee Directors’ Company Restricted Stock Units vest immediately. The vesting of PSUs follows a two or three year measurement period and is conditioned on both the Grantee’s service and the Company’s achievement of performance requirements during the measurement period. In the past the Company has also granted restricted stock awards (“RSAs”) which are awards of common stock that are restricted until the shares vest (generally over a period of three or four years). The fair value of Company Restricted Stock Units, RSAs and PSUs is based on the closing price of the Company’s common stock on the grant date. Compensation expense for Company Restricted Stock Units and RSAs is recognized ratably over a Grantee’s service period. Compensation expense for PSUs is also recognized over a Grantee’s service period, but only if and when the Company concludes that it is probable (more than likely) the performance condition(s) will be achieved. The assessment of the probability of achievement is performed each period based on the relevant facts and circumstances at that time, and if the estimated grant-date fair value changes as a result of that assessment, the cumulative effect of the change on current and prior periods is recognized in the period of change. All awards are reserved for issuance under the Company’s Amended and Restated 2006 Incentive Plan (the “2006 Plan”) and the Company’s 2014 Omnibus Incentive Plan (which replaced the 2006 Plan). In addition, the Company has awarded Deferred Cash Awards to Grantees which entitle a Grantee to receive cash over time upon vesting. The vesting of Deferred Cash Awards is conditioned on a Grantee’s continued employment.

Employee Stock Purchase Plan

The grant-date fair value of employees’ purchase rights under the Company’s Employee Stock Purchase Plan is estimated using the Black-Scholes option-pricing model with the following assumptions for the purchase rights granted during the thirteen weeks ended December 26, 2015 and December 27, 2014:

	Thirteen weeks ended
	December 26, 2015			December 27, 2014
Average expected life	6 months			6 months
Average volatility	57		%	40		%
Dividend yield	2.16		%	0.88		%
Risk-free interest rate	0.10		%	0.05		%
Weighted average grant date fair value	$	16.27		$	33.94

Income before income taxes in the Unaudited Consolidated Statements of Operations includes compensation expense related to the plans described above of $8.9 million and $10.4 million for the thirteen weeks ended December 26, 2015 and December 27, 2014, respectively.