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STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2011
STOCK-BASED COMPENSATION  
STOCK-BASED COMPENSATION

(10) STOCK-BASED COMPENSATION

        The Company maintains stock-based compensation plans approved by the shareholders, which provide that the Compensation Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, non-vested stock awards and bonuses of common stock. At December 31, 2011, 621,576 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. The Company's policy is to issue shares upon exercise of stock options from treasury shares held by the Company.

        Under the stock option plans, the exercise price of each option equals the market price at the time of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the fifth anniversary of the grant. Expiration of grants is from six to ten years from the date of grant. The Company recorded $5,623, $4,893 and $4,046 of compensation expense (included in selling, general and administrative expenses) in the 2011, 2010 and 2009 fiscal years, respectively. The associated tax benefits recorded in the 2011, 2010 and 2009 fiscal years was $2,137, $1,859 and $1,558, respectively.

        At December 31, 2011, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.26 years, was approximately $10,011.

        The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2011, 2010 and 2009 was estimated using the following assumptions:

 
   2011   2010   2009  

Expected volatility

     32.50 %   31.80 %   31.80 %

Risk-free interest rate

     0.88 %   1.62 %   2.26 %

Expected life from vesting date

     3.0 yrs     3.0 yrs     3.0 yrs.  

Dividend yield

     0.82 %   0.81 %   0.66 %

        Following is a summary of the activity of the stock plans during 2009, 2010 and 2011:

 
   Number of Shares   Weighted Average Exercise Price   Weighted Average Remaining Contractual Term   Aggregate Intrinsic Value  

Outstanding at December 27, 2008

     1,112,777   $ 49.36              

Granted

     242,707     78.65              

Exercised

     (186,120 )   (26.28 )            

Forfeited

     (43,053 )   (64.84 )            
                         

Outstanding at December 26, 2009

     1,126,311   $ 59.06     5.12   $ 26,454  
                       

Options vested or expected to vest at December 26, 2009

     1,085,735   $ 58.60     5.07     25,998  
                       

Options exercisable at December 26, 2009

     581,145   $ 47.76     4.02     20,229  
                       

        The weighted average per share fair value of options granted during 2009 was $22.97.

 
   Number of
Shares 		  Weighted
Average
Exercise
Price 		  Weighted
Average
Remaining
Contractual
Term 		  Aggregate
Intrinsic
Value 		 

Outstanding at December 26, 2009

     1,126,311   $ 59.06              

Granted

     229,703     85.12              

Exercised

     (109,711 )   (32.09 )            

Forfeited

     (23,409 )   (71.11 )            
                         

Outstanding at December 25, 2010

     1,222,894   $ 66.22     4.86   $ 25,703  
                       

Options vested or expected to vest at December 25, 2010

     1,187,408   $ 65.84     4.81     25,401  
                       

Options exercisable at December 25, 2010

     708,014   $ 58.05     3.91     20,614  
                       

        The weighted average per share fair value of options granted during 2010 was $23.69.

 
   Number of
Shares 		  Weighted
Average
Exercise
Price 		  Weighted
Average
Remaining
Contractual
Term 		  Aggregate
Intrinsic
Value 		 

Outstanding at December 25, 2010

     1,222,894   $ 66.22              

Granted

     214,206     85.40              

Exercised

     (306,218 )   (61.57 )            

Forfeited

     (52,169 )   (76.12 )            
                         

Outstanding at December 31, 2011

     1,078,713   $ 70.88     4.68   $ 22,382  
                       

Options vested or expected to vest at December 31, 2011

     1,048,182   $ 70.52     4.63     22,113  
                       

Options exercisable at December 31, 2011

     618,844   $ 61.57     3.56     18,441  
                       

        The weighted average per share fair value of options granted during 2011 was $23.32.

        Following is a summary of the status of stock options outstanding at December 31, 2011:

Outstanding and Exercisable By Price Range  
Options Outstanding   Options Exercisable  
Exercise Price Range   Number   Weighted
Average
Remaining
Contractual
Life 		  Weighted
Average
Exercise
Price 		  Number   Weighted
Average
Exercise
Price 		 
$  19.73 -   34.33     126,354   1.86 years   $ 25.59     126,354   $ 25.59  
    40.21 -   60.97     255,880   3.40 years     56.66     235,980     56.90  
    64.36 -   99.13     684,250   5.64 years     83.74     256,510     83.59  
  105.44 - 110.26     12,229   6.25 years     109.04     —     —  
                           
      1,078,713               618,844        
                           

        In accordance with shareholder-approved plans, the Company grants stock under various stock-based compensation arrangements, including non-vested stock and stock issued in lieu of cash bonuses. Under such arrangements, stock is issued without direct cost to the employee. In addition, the Company grants restricted stock units. The restricted stock units are settled in Company stock when the restriction period ends. During fiscal 2011, 2010 and 2009, the Company granted non-vested stock and restricted stock units to directors and certain management employees as follows (which are included in the above stock plan activity tables):

 
   2011   2010   2009  

Shares issued

     47,417     29,076     21,607  

Weighted-average per share price on grant date

   $ 88.26   $ 80.91   $ 64.44  

Compensation expense

   $ 2,004   $ 2,541   $ 2,595  

        At December 31, 2011 the amount of deferred stock-based compensation granted, to be recognized over a weighted-average period of 2.2 years, was approximately $5,469.