XML 54 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11. Share-Based Compensation
 3 Months Ended
Jul. 01, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
11.  Share-Based Compensation

Share-based compensation expense, which includes stock options and restricted stock units, for the three and six months ended July 1, 2012 and July 3, 2011, respectively, were as follows:

   
Three Months Ended
   
Six Months Ended
 
 
 
 
July 1,
2012
   
July 3,
2011
   
July 1,
2012
   
July 3,
2011
 
   
(In thousands)
 
Total cost of share-based payment plans
  $ 94     $ 183     $ 202     $ 360  

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 and six months ended July 1, 2012 and July 3, 2011.

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

 
 
Number of Common Shares
       
 
 
 
 
Options
Outstanding
   
Exercisable
   
Available
for Grant
   
Weighted-Average
Exercise
Price
 
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 July 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  
Restricted stock unit activity, net
    —       —       1,667       3.25  
Forfeited/cancelled/expired
    (313,946 )     —       155,996       3.19  
Balance at July 3, 2011 (*)
    1,717,138       683,620       856,878       2.95  

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

As of July 1, 2012, the options outstanding had a weighted average remaining contractual life of 7.3 years, weighted average exercise price of $2.92 and aggregate intrinsic value of $0.5 million.  The options exercisable have a weighted average exercise price of $3.22, a weighted average remaining contractual life of 6.9 years and aggregate intrinsic value of $0.2 million as of July 1, 2012.

There were no options exercised during the three and six months ended July 1, 2012 and July 3, 2011.  Lakes’ unrecognized share-based compensation expense related to stock options was approximately $0.5 million as of July 1, 2012, which is expected to be recognized over a weighted-average period of 1.5 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 six months ended July 1, 2012 and July 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 July 1, 2012
    —       —  
                 
2011
               
Balance at January 2, 2011
    79,996     $ 3.25  
Vested
    (39,992 )     3.25  
Forfeited
    (1,667 )     3.25  
Balance at July 3, 2011
    38,337       3.25  

During the six months ended July 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.