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Share-Based Compensation
 3 Months Ended
Apr. 01, 2012
Share-Based Compensation [Abstract]  
Share-Based Compensation

11.  Share-Based Compensation

Share-based compensation expense, which includes stock options and restricted stock units, was $0.1 million and $0.2 million for the three months ended April 1, 2012 and April 3, 2011, respectively.

Stock Options

The Company uses the Black Scholes option pricing model to estimate the fair value and compensation cost associated with employee incentive stock options which requires the consideration of historical employee exercise behavior data and the use of a number of assumptions including volatility of the Company’s stock price, the weighted average risk-free interest rate and the weighted average expected life of the options. There were no options granted during the three months ended April 1, 2012 and April 3, 2011.

 

The following table summarizes Lakes’ stock option activity during the three months ended April 1, 2012 and April 3, 2011:

 

                                 
    Number of Common Shares     Weighted-Average
Exercise
Price		  
         
    Options
Outstanding		     Exercisable     Available
for  Grant		    

2012

                                

Balance at January 1, 2012

     1,644,639       1,155,347       874,627     $   2.92  

Forfeited/cancelled/expired

     (116,600)       —       1,000       2.88  
   

 

 

            

 

 

          

Balance at April 1, 2012

     1,528,039       1,081,249       875,627       2.92  
   

 

 

            

 

 

          
         

2011

                                

Balance at January 2, 2011

     2,031,084       904,076       699,215     $ 2.99  

Forfeited/cancelled/expired

     (151,667)       —       1,667       3.24  
   

 

 

            

 

 

          

Balance at April 3, 2011(*)

     1,879,417       797,982       700,882       2.97  
   

 

 

            

 

 

          

 

(*) Options outstanding do not include 38,337 of outstanding restricted stock units.

As of April 1, 2012, the options outstanding had a weighted average remaining contractual life of 7.5 years, weighted average exercise price of $2.92 and aggregate intrinsic value of zero. The options exercisable have a weighted average exercise price of $3.22, a weighted average remaining contractual life of 7.2 years and aggregate intrinsic value of zero as of April 1, 2012.

There were no options exercised during the three months ended April 1, 2012 and April 3, 2011. Lakes’ unrecognized share-based compensation related to stock options was approximately $0.6 million as of April 1, 2012, which is expected to be recognized over a weighted-average period of 1.7 years.

Lakes issues new shares of common stock upon the exercise of options.

Restricted Stock Units

The following table summarizes Lakes’ restricted stock unit activity during the three months ended April 1, 2012 and April 3, 2011:

 

                 

Non-Vested Shares:

   Restricted
Stock  Units		     Weighted-Average
Grant-
Date Fair Value		  

2012

                

Balance at January 1, 2012

     38,337     $   3.25  

Vested

     (38,337)       3.25  
   

 

 

          

Balance at April 1, 2012

     —       —  
   

 

 

          
     

2011

                

Balance at January 2, 2011

     79,996     $ 3.25  

Vested

     (39,992)       3.25  
   

 

 

          

Balance at April 3, 2011

     40,004       3.25  
   

 

 

          

During the three months ended April 1, 2012, 35,257 common shares were issued upon the vesting of restricted stock units, net of common shares redeemed at the election of the grantee for payroll tax payment.