STOCK-BASED COMPENSATION (Tables)
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12 Months Ended |
Mar. 28, 2020 |
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| Share-based Payment Arrangement [Abstract] |
Ìý
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| Total Stock-Based Compensation Cost and Associated Income Tax Benefits Related to Stock-Based Compensation Arrangements Recognized and Stock-Based Compensation Costs Included in Inventory |
Total stock-based compensation cost and the associated income tax benefits recognized in the Consolidated Statements of Income, and stock-based compensation costs included in inventory in the Consolidated Balance Sheets, on a continuing operations basis, are as follows:
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Ìý |
Ìý |
Year Ended March |
Ìý |
Three Months
Ended March
(Transition Period)
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Ìý |
Year Ended December |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
(In thousands) |
Ìý |
2020 |
Ìý |
Ìý |
2019 |
Ìý |
2018 |
Ìý |
2017 |
Stock-based compensation cost |
Ìý |
$ |
68,205 |
|
Ìý |
Ìý |
$ |
84,285 |
|
Ìý |
$ |
19,822 |
|
Ìý |
$ |
63,888 |
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Income tax benefits |
Ìý |
15,460 |
|
Ìý |
Ìý |
18,570 |
|
Ìý |
4,415 |
|
Ìý |
20,124 |
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Stock-based compensation costs included in inventory at period end |
Ìý |
1,903 |
|
Ìý |
Ìý |
2,555 |
|
Ìý |
1,861 |
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Ìý |
1,347 |
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| Schedule of Assumption Used and Resulting Weighted Average Fair Value of Stock Option Granted |
The grant date fair value of each option award is calculated using a lattice option-pricing valuation model, which incorporates a range of assumptions for inputs as follows:
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Ìý |
Ìý |
Year Ended March |
Ìý |
Three Months
Ended March
(Transition Period)
|
Ìý |
Year Ended December |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
2020 |
Ìý |
Ìý |
2019 |
Ìý |
2018 |
Ìý |
2017 |
Expected volatility |
Ìý |
24% to 27% |
Ìý |
Ìý |
22% to 29% |
Ìý |
24% to 29% |
Ìý |
23% to 30% |
Weighted average expected volatility |
Ìý |
25% |
Ìý |
Ìý |
25% |
Ìý |
25% |
Ìý |
24% |
Expected term (in years) |
Ìý |
6.1 to 7.6 |
Ìý |
Ìý |
6.1 to 7.5 |
Ìý |
6.1 to 7.6 |
Ìý |
6.3 to 7.7 |
Weighted average dividend yield |
Ìý |
2.5% |
Ìý |
Ìý |
2.6% |
Ìý |
2.9% |
Ìý |
2.8% |
Risk-free interest rate |
Ìý |
1.4% to 2.4% |
Ìý |
Ìý |
2.1% to 3.2% |
Ìý |
1.9% to 2.9% |
Ìý |
0.7% to 2.4% |
Weighted average fair value at date of grant |
Ìý |
$17.19 |
Ìý |
Ìý |
$16.82 |
Ìý |
$15.34 |
Ìý |
$9.90 |
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| Stock Option Activity |
Stock option activity for the year ended March 2020 is summarized as follows:
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Ìý |
Number of Shares |
Ìý |
Weighted Average Exercise Price |
Ìý |
Weighted Average Remaining Contractual TermÌý(Years) |
Ìý |
Aggregate Intrinsic Value
(InÌýthousands)
|
Outstanding, March 2019 |
9,910,210 |
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Ìý |
$ |
60.11 |
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Ìý |
Ìý |
Ìý |
Ìý |
Spin related adjustment |
674,789 |
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Ìý |
— |
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Ìý |
Ìý |
Ìý |
Ìý |
Transfer to Kontoor Brands |
(756,709 |
) |
Ìý |
62.51 |
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Ìý |
Ìý |
Ìý |
Ìý |
Granted |
1,512,955 |
|
Ìý |
84.27 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Exercised |
(3,290,971 |
) |
Ìý |
53.53 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Forfeited/cancelled |
(129,272 |
) |
Ìý |
70.78 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Outstanding, March 2020 |
7,921,002 |
|
Ìý |
$ |
61.93 |
|
Ìý |
6.6 |
Ìý |
$ |
33,720 |
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Exercisable, March 2020 |
5,897,457 |
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Ìý |
$ |
55.66 |
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Ìý |
5.9 |
Ìý |
$ |
33,681 |
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| RSU Activity |
RSU activity for the year ended March 2020 is summarized as follows:
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Ìý |
Performance-based |
Ìý |
Nonperformance-based |
Ìý |
Number Outstanding |
Ìý |
Weighted Average
GrantÌýDate
Fair Value
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Ìý |
Number Outstanding |
Ìý |
Weighted Average
GrantÌýDate
Fair Value
|
Outstanding, March 2019 |
1,396,676 |
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Ìý |
$ |
61.68 |
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Ìý |
664,833 |
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Ìý |
$ |
69.88 |
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Spin related adjustment |
63,336 |
|
Ìý |
— |
|
Ìý |
44,933 |
|
Ìý |
— |
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Transfer to Kontoor Brands |
(52,018 |
) |
Ìý |
67.59 |
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Ìý |
(79,187 |
) |
Ìý |
71.19 |
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Granted |
275,092 |
|
Ìý |
84.28 |
|
Ìý |
196,621 |
|
Ìý |
84.22 |
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Issued as Common Stock |
(519,162 |
) |
Ìý |
61.30 |
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Ìý |
(235,604 |
) |
Ìý |
66.44 |
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Forfeited/cancelled |
(23,673 |
) |
Ìý |
66.26 |
|
Ìý |
(55,618 |
) |
Ìý |
70.90 |
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Outstanding, March 2020 |
1,140,251 |
|
Ìý |
$ |
63.51 |
|
Ìý |
535,978 |
|
Ìý |
$ |
70.50 |
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Vested, March 2020 |
865,577 |
|
Ìý |
$ |
59.24 |
|
Ìý |
42,343 |
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Ìý |
$ |
73.23 |
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| Restricted Stock Activity |
Restricted stock activity for the year ended March 2020 is summarized below:
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Ìý |
Nonvested Shares Outstanding |
Ìý |
Weighted Average GrantÌýDate Fair Value |
Nonvested shares, March 2019 |
626,725 |
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Ìý |
$ |
59.86 |
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Spin related adjustment |
39,434 |
|
Ìý |
— |
|
Transfer to Kontoor Brands |
(112,763 |
) |
Ìý |
60.91 |
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Granted |
78,884 |
|
Ìý |
85.36 |
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Dividend equivalents |
13,580 |
|
Ìý |
78.24 |
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Vested |
(62,982 |
) |
Ìý |
61.47 |
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Forfeited |
(40,046 |
) |
Ìý |
59.47 |
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Nonvested shares, March 2020 |
542,832 |
|
Ìý |
$ |
59.30 |
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