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COMPENSATION PLANS

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

COMPENSATION PLANS

NOTE 9 - COMPENSATION PLANS

In May 2017, the Company’s shareholders approved the 2017 Stock Incentive Plan (the “2017 SIP”) under which employees, independent contractors, and non-employee directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may not require the satisfaction of performance objectives. Vesting requirements are determined by the Compensation Committee of the Board of Directors. The Company has reserved 750,000 shares for issuance under the 2017 SIP, of which 589,000 shares remain available for future grants as of March 31, 2018.

In April 2007, the Company adopted and the shareholders approved the 2007 Stock Incentive Plan (the “2007 SIP”), which had similar provisions as the 2017 SIP. The 2007 SIP plan expired April 24, 2017. The Company had reserved 2,550,000 shares for issuance under the 2007 SIP, of which 2,181,000 shares were issued.

Compensation costs related to all share-based payments recognized in the consolidated statements of income aggregated $1.1 million and $0.7 million for the three months ended March 31, 2018 and April 1, 2017, respectively.

Stock Options

A summary of changes in options outstanding under the 2007 SIP is summarized below:

		Shares				Weighted Average Exercise Price				Grant Date Fair Value
Outstanding at December 31, 2017			11,838			$	8.95			$	6.69
Granted			—				—				—
Exercised			—				—				—
Expired			—				—				—
Outstanding at March 31, 2018			11,838			$	8.95			$	6.69

The aggregate intrinsic value (mean market price at March 31, 2018 less the weighted average exercise price) of options outstanding under the 2007 SIP was approximately $0.5 million.

Restricted Stock Units

Beginning in 2009, the Company began granting performance-based and retention-based restricted stock units to senior employees in lieu of incentive stock options. The vesting of the performance-based awards is dependent on the achievement of corporate objectives established by the Compensation Committee of the Board of Directors and a three-year vesting period. The retention-based awards are subject only to the three-year vesting period.

There were 138,400 restricted stock units issued during the three months ended March 31, 2018. Total compensation costs related to these restricted stock units are $6.4 million. These costs are being recognized ratably over the vesting period of three years. Total compensation cost related to restricted stock units was $1.1 million and $0.7 million for the three months ended March 31, 2018 and April 1, 2017, respectively.