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Note 12. Share-Based Compensation
 6 Months Ended
Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

12.  Share-Based Compensation


Share-based compensation expense, which includes stock options and restricted stock units, for the three and six months ended June 30, 2013 and July 1, 2012, respectively, were as follows:


   

Three Months Ended

   

Six Months Ended

 
   

June 30,

2013 

   

July 1,

2012 

   

June 30,

2013 

   

July 1,

2012 

 
   

(In thousands)

 

Total cost of share-based payment plans

  $ 162     $ 94     $ 283     $ 202  

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 zero and 443,500 options granted during the three and six months ended June 30, 2013, respectively. There were no options granted during the three and six months ended July 1, 2012.


The following table summarizes Lakes’ stock option activity during the six months ended June 30, 2013 and July 1, 2012:


   

Number of Common Shares

         
   

 

Options

Outstanding 

   

 

 

Exercisable 

   

 

Available

for Grant 

   

Weighted-Average

Exercise

Price  

 

2013

                               

Balance at December 30, 2012

    1,528,039       1,298,809       875,627     $ 3.04  

Forfeited/cancelled/expired

    (59,058 )             59,058       3.36  

Granted 

    443,500               (443,500 )     3.07  

Balance at June 30, 2013

    1,912,481       1,267,339       491,185       2.95  
                                 

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  

As of June 30, 2013, the options outstanding had a weighted average remaining contractual life of 7.2 years, weighted average exercise price of $2.95 and aggregate intrinsic value of $1.2 million. The options exercisable have a weighted average exercise price of $3.03, a weighted average remaining contractual life of 6.4 years and aggregate intrinsic value of $0.7 million as of June 30, 2013.


There were no options exercised during the three and six months ended June 30, 2013 and July 1, 2012. Lakes’ unrecognized share-based compensation expense related to stock options was approximately $0.8 million as of June 30, 2013, which is expected to be recognized over a weighted-average period of 2.3 years.


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


Restricted Stock Units  


There was no restricted stock activity during the six months ended June 30, 2013. The following table summarizes Lakes’ restricted stock unit activity during the six months ended July 1, 2012:


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

    —       —  

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.