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Note 13 - Share-based Compensation | 12 Months Ended
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Dec. 28, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 1 3. Share-Based Compensation Overview In June 2007, Lakes’ shareholders approved the 2007 Lakes Stock Option and Compensation Plan (the “2007 Plan”), which is authorized to grant a total of 1.25 million shares of Lakes’ common stock. Stock options granted under the 2007 Plan typically vest in equal installments over three-year, four-year and five-year periods, beginning on the first anniversary of the date of each grant and continue on each subsequent anniversary date until the option is fully vested. The employee must be employed by Lakes on the anniversary date in order to vest in any shares that year. Vested options are exercisable for ten years from the date of grant; however, if the employee is terminated (voluntarily or involuntarily), any unvested options as of the date of termination will be forfeited. Lakes also has a 1998 Stock Option and Compensation Plan. There were 12,500 stock options outstanding under this plan as of December 28, 2014. No additional options will be granted under this plan. Share-based compensation expense related to stock options was $0.3 million, $0.5 million and $0.4 million for fiscal 2014, fiscal 2013 and fiscal 2012, respectively. For fiscal years 2014, 2013 and 2012, no income tax benefit was recognized in Lakes’ consolidated statements of operations for share-based compensation arrangements. Management assessed the likelihood that the deferred tax assets relating to future tax deductions from share-based compensation will be recovered from future taxable income and determined that a valuation allowance is necessary to the extent that management currently believes it is more likely than not that tax benefits will not be realized. Management’s determination is based primarily on historical losses and earnings volatility. Stock Options The following table summarizes stock option activity for fiscal years 2014, 2013 and 2012:
|  | Number of Common Shares |  |  |  |  |
|  | Options Outstanding |  |  | Exercisable |  |  | Available for Grant |  |  | Weighted-Average E xercise Price |
201 4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 29, 2013 |  |  | 798,171 |  |  |  | 585,769 |  |  |  | 263,424 |  |  | $ | 5.97 |
Exercised |  |  | (28,343 | ) |  |  |  |  |  |  | — |  |  |  | 4.73 |
Forfeited/cancelled/expired |  |  | (25,211 | ) |  |  |  |  |  |  | 24,211 |  |  |  | 5.19 |
Granted |  |  | 11,000 |  |  |  |  |  |  |  | (11,000 | ) |  |  | 9.18 |
Balance at December 28, 2014 |  |  | 755,617 |  |  |  | 616,792 |  |  |  | 276,635 |  |  |  | 6.09 |
201 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 30, 2012 |  |  | 764,034 |  |  |  | 649,412 |  |  |  | 437,797 |  |  | $ | 5.84 |
Exercised |  |  | (140,236 | ) |  |  |  |  |  |  | — |  |  |  | 5.52 |
Forfeited/cancelled/expired |  |  | (53,377 | ) |  |  |  |  |  |  | 53,377 |  |  |  | 6.25 |
Granted |  |  | 227,750 |  |  |  |  |  |  |  | (227,750 | ) |  |  | 6.18 |
Balance at December 29, 2013 |  |  | 798,171 |  |  |  | 585,769 |  |  |  | 263,424 |  |  |  | 5.97 |
201 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2012 |  |  | 822,334 |  |  |  | 577,690 |  |  |  | 437,297 |  |  | $ | 5.84 |
Forfeited/cancelled/expired |  |  | (58,300 | ) |  |  |  |  |  |  | 500 |  |  |  | 5.76 |
Balance at December 30, 2012 |  |  | 764,034 |  |  |  | 649,412 |  |  |  | 437,797 |  |  |  | 5.84 |
Lakes’ determination of fair value of share-based option awards on the date of grant using an option-pricing model is affected by the following assumptions regarding complex and subjective variables. Any changes in these assumptions may materially affect the estimated fair value of the share-based award.
| • | Expected dividend yield — As the Company has not historically paid dividends, the dividend rate variable in the Black-Scholes model is zero.
| • | Risk-free interest rate — The risk free interest rate assumption is based on the U.S. Treasury yield curve in effect at the time of grant and with maturities consistent with the expected term of options.
| • | Expected term — The expected term of employee stock options represents the weighted-average period that the stock options are expected to remain outstanding. It is based upon an analysis of the historical behavior of option holders during the period from September 1995 to December 28, 2014. Management believes historical data is reasonably representative of future exercise behavior.
| • | Expected volatility — The volatility assumption is based on the historical weekly price data of Lakes’ stock over a two-year period. Management evaluated whether there were factors during that period which were unusual and which would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors.
| • | Forfeiture rate — As share-based compensation expense recognized is based on awards ultimately expected to vest, expense for grants is reduced for estimated forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Lakes’ management has reviewed the historical forfeitures which have been minimal, and as such presently amortizes the grants to the end of the vesting period and will adjust for forfeitures at the end of the term.
The following assumptions were used to estimate the fair value of stock options granted during fiscal 2014 and fiscal 2013. No stock options were granted in fiscal 2012.
|  | 2014 |  | 2013
Expected dividend yield |  |  | — |  |  |  | — |
Risk-free interest rate |  | 2.39 | – | 2.88% |  | 1.96 | – | 2.70%
Expected term (in years) |  |  | 10 |  |  |  | 10 |
Expected volatility |  | 32.87 | – | 39.35% |  | 39.32 | – | 43.78%
As of December 28, 2014, the options outstanding had a weighted-average remaining contractual life of 5.8 years, weighted-average exercise price of $6.09 and an aggregate intrinsic value of $0.7 million. The options exercisable have a weighted-average exercise price of $6.01, a weighted-average remaining contractual life of 5.3 years and an aggregate intrinsic value of $0.6 million as of December 28, 2014. The total intrinsic value of stock options exercised during fiscal 2014 and fiscal 2013 was $0.1 million and $0.4 million, respectively. No stock options were exercised in fiscal 2012.The weighted-average grant-date fair value of stock options granted during fiscal 2014 and fiscal 2013 was $4.65 and $3.45 per share, respectively. No stock options were granted in fiscal 2012. As of December 28, 2014, Lakes’ unrecognized share-based compensation related to stock options was approximately $0.3 million, which is expected to be recognized over a weighted-average period of 1.3 years. Lakes issues new shares of common stock upon exercise of options. Restricted S tock U nits There was no restricted stock activity during the fiscal years ended December 28, 2014 or December 29, 2013. The following table summarizes Lakes’ restricted stock unit activity for fiscal 2012:
|  | Restricted Stock Units |  |  | Weighted-A verage G rant- Date Fair Value |
201 2 |  |  |  |  |  |  |  |
Balance at January 1, 2012 |  |  | 19,169 |  |  | $ | 6.50 |
Vested |  |  | (19,169 | ) |  |  | 6.50 |
Forfeited |  |  | — |  |  |  | — |
Balance at December 30, 2012 |  |  | — |  |  |  | — |
During fiscal 2012, 17,629 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.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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