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Note 15. Share-Based Compensation
 9 Months Ended
Sep. 29, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

15.  Share-Based Compensation


Share-based compensation expense, which includes stock options and restricted stock units, for the three and nine months ended September 29, 2013 and September 30, 2012, respectively, were as follows:


   

Three Months Ended

   

Nine Months Ended

 
   

September 29,

2013

   

September 30,

2012

   

September 29,

2013

   

September 30,

2012

 
   

(In thousands)

 

Total cost of share-based payment plans

  $ 113     $ 94     $ 396     $ 296  

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 6,000 and 449,500 options granted during the three and nine months ended September 29, 2013, respectively. There were no options granted during the three and nine months ended September 30, 2012.


The following table summarizes Lakes’ stock option activity during the nine months ended September 29, 2013 and September 30, 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     $ 2.92  

Forfeited/cancelled/expired

    (103,001 )             103,001       3.08  

Exercised

    (38,548 )             —       4.03  

Granted

    449,500               (449,500 )     3.08  

Balance at September 29, 2013

    1,835,990       1,253,521       529,128       2.94  
                                 

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 September 30, 2012

    1,528,039       1,121,818       875,627       2.92  

As of September 29, 2013, the options outstanding had a weighted average remaining contractual life of 6.8 years, weighted average exercise price of $2.94 and aggregate intrinsic value of $2.2 million. The options exercisable have a weighted average exercise price of $3.03, a weighted average remaining contractual life of 6.0 years and aggregate intrinsic value of $1.4 million as of September 29, 2013.


There were 38,548 options exercised during the three and nine months ended September 29, 2013 and no options exercised during the three and nine months ended September 30, 2012. The total intrinsic value of options exercised during the three and nine months ended September 29, 2013 was less than $0.1 million. Lakes’ unrecognized share-based compensation expense related to stock options was approximately $0.6 million as of September 29, 2013, which is expected to be recognized over a weighted-average period of 2.2 years.


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


Restricted Stock Units  


There was no restricted stock activity during the nine months ended September 29, 2013. The following table summarizes Lakes’ restricted stock unit activity during the nine months ended September 30, 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 September 30, 2012

    —       —  

During the nine months ended September 30, 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.