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