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Note 5 - Stock-based Compensation
 3 Months Ended
Apr. 05, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 5 – STOCK-BASED COMPENSATION


Stock Option Awards


In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award.


All outstanding stock options vested prior to the end of 2013, and therefore there was no stock option compensation expense in the first quarter of 2014 or 2015.


There were no stock options granted during the first three months of fiscal years 2015 or 2014. The following table summarizes stock options outstanding as of April 5, 2015, as well as activity during the three months then ended:


   

Shares

   

Weighted Average

Exercise Price

 

Outstanding at December 28, 2014

    126,000     $ 9.23  

Granted

    0       0  

Exercised

    17,000       8.95  

Forfeited or canceled

    0       0  

Outstanding at April 5, 2015

    109,000     $ 8.91  
                 

Exercisable at April 5, 2015

    109,000     $ 8.91  

At April 5, 2015, the aggregate intrinsic value of in-the-money options outstanding and options exercisable was $2.3 million and $2.3 million, respectively (the intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option).


Cash proceeds and intrinsic value related to total stock options exercised during the first three months of 2015 and 2014 are provided in the following table:


   

Three Months Ended

 
   

April 5,

2015

   

March 30,

2014

 
   

(In thousands)

 

Proceeds from stock options exercised

  $ 157     $ 105  

Intrinsic value of stock options exercised

  $ 131     $ 224  

Restricted Stock Awards


During the three months ended April 5, 2015, and March 30, 2014, the Company granted restricted stock awards for 579,000 and 487,500 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a two to five-year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, awards (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause.


Compensation expense related to restricted stock grants was $4.5 million and $2.2 million for the three months ended April 5, 2015, and March 30, 2014, respectively. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.


The following table summarizes restricted stock outstanding as of April 5, 2015, as well as activity during the three months then ended:


   

Shares

   

Weighted Average

Grant Date

Fair Value

 

Outstanding at December 28, 2014

    1,391,000     $ 17.12  

Granted

    579,000       16.22  

Vested

    286,000       14.01  

Forfeited or canceled

    194,000       13.46  

Outstanding at April 5, 2015

    1,490,000     $  17.84  

As of April 5, 2015, the unrecognized total compensation cost related to unvested restricted stock was $16.3 million. That cost is expected to be recognized by the end of 2019.