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Shareholders' Equity:

12 Months Ended

Dec. 31, 2011

Shareholders' Equity:

Shareholders' Equity:

6. Shareholders’ Equity:

Repurchase of Common Stock

In 2011, the Company repurchased 99,494 shares for an aggregate purchase price of $3.5 million or $35.45 per share. In 2010, the Company repurchased 165,590 shares for an aggregate purchase price of $4.0 million or $24.14 per share. Since inception of stock repurchase activities in November 1995 through December 31, 2011, the Company has repurchased 4,504,128 shares of its stock at an average price of $15.15 per share. Under the Board of Directors’ authorization, as of December 31, 2011, the Company has the ability to repurchase an additional 495,872 shares of its common stock. Repurchases may be made from time to time at prevailing prices, subject to certain restrictions on volume, pricing and timing.

Stock Option Plans

The Company had authorized up to 750,000 shares of common stock be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2001 Stock Option Plan (“the 2001 Plan”). The 2001 Plan expired on February 20, 2011.

At the April 28, 2010 Annual Shareholders Meeting, the Company’s shareholders approved the 2010 Stock Option Plan (the “2010 Plan”). The 2010 Plan (as described more completely in the Company’s definitive Proxy Statement filed with the United States Securities and Exchange Commission on March 11, 2010) provides for the issuance of up to 250,000 shares of common stock in the form of either nonqualified or incentive stock option grants. Participants in the 2010 Plan may include employees, officers, directors, consultants and advisors of the Company.

Grants under the 2001 Plan and 2010 Plan are made by the Board of Directors or a Board-designated committee at a price of not less than 100% of the fair market value on the date of grant. If an incentive stock option is granted to an individual who owns more than 10% of the voting rights of the Company’s common stock, the option exercise price may not be less than 110% of the fair market value on the date of grant. The term of the options may not exceed 10 years, except in the case of nonqualified stock options, whereby the terms are established by the Board of Directors or a Board-designated committee. Options may be exercisable in whole or in installments, as determined by the Board of Directors or a Board-designated committee.

The Company also sponsors a Stock Option Plan for Nonemployee Directors (the “Nonemployee Directors Plan”) and has reserved a total of 300,000 shares for issuance to directors of the Company who are not employees.

Stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan as of December 31, 2011 was as follows:

		Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Life (years)		Intrinsic Value
Outstanding at December 26, 2009		614,650		$	18.08		6.93		$	2,524,800
Granted		95,250		32.03
Exercised		(61,304	)	15.02
Forfeited		(4,376	)	15.98
Outstanding at December 25, 2010		644,220		20.45			6.82		7,571,000
Granted		93,000		45.55
Exercised		(68,606	)	16.85
Outstanding at December 31, 2011		668,614		$	24.31		6.62		$	22,101,800
Exercisable at December 31, 2011		419,788		$	19.84		5.49		$	15,753,900

The fair value of each option granted in 2011 and 2010 was estimated on the date of the grant using the Black-Scholes option pricing model with the following assumptions:

Year Granted		Option Fair Value		Risk Free Interest Rate		Expected Life (Years)		Implied Volatility		Dividend Yield
2011		$11.28 / $15.42		1.94% / 1.14%		6 / 6		28.0% / 28.5%		.32% / .23%
2010		$9.80 / $10.11		2.43% / 2.28%		6 / 6		28.3% / 27.8%		.26% / .24%

Options outstanding as of December 31, 2011 are exercisable as follows:

		Options Outstanding							Options Exercisable
Range of Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price			Number Exercisable		Weighted Average Exercise Price
$ 12.75 - $ 13.01		110,588		7.13		$	12.86		69,460		$	12.83
16.52 - 20.32		156,601		4.76		18.57			140,347		18.76
20.46 - 53.34		401,425		7.21		29.71			209,981		22.89
		668,614		6.62		$	24.31		419,788		$	19.84

The total intrinsic value of options exercised during 2011 and 2010 was $1.8 million and $0.7 million, respectively. The total fair value of shares vested during 2011 and 2010 was $2.2 million and $1.9 million, respectively.

All unexercised options at December 31, 2011 have an exercise price equal to the fair market value on the date of the grant.

As of December 31, 2011, the Company had $2.0 million of total unrecognized compensation expense related to stock options that is expected to be recognized over the remaining weighted average vesting period of approximately 2.6 years.