XML 59 R13.htm IDEA: XBRL DOCUMENT
v3.19.3

Stock Options and Awards | 9 Months Ended
--- | ---
Sep. 28, 2019
Stock Options and Awards [Abstract] |
Stock Options and Awards | Note F - Stock Options and awards Stock Options As of September 28, 2019, the Company had one stock option plan, The Eastern Company 2010 Executive Stock Incentive Plan (the “2010 Plan”), for officers, other key employees, and non-employee Directors. Incentive stock options granted under the 2010 Plan must have exercise prices that are not less than 100% of the fair market value of the Company’s common stock on the dates the stock options are granted. Restricted stock awards may also be granted to participants under the 2010 Plan with restrictions determined by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). Under the 2010 Plan, non-qualified stock options granted to participants have exercise prices determined by the Compensation Committee. During the third quarters of 2019 and 2018, no stock option or restricted stock grants were issued subject to meeting performance measurements. For the nine months of 2019, the Company used several assumptions, which included an expected term of 3.5 to 4 years, volatility deviation of 28.88% to 32.33% and a risk-free rate of 1.42% to 2.48%. For the nine months of 2018, the Company used several assumptions, which included an expected term of 3.5 years, volatility deviation of 29.5% and a risk-free rate of 2.33%. The 2010 Plan also permits the issuance of Stock Appreciation Rights (“SARs”). The SARs are in the form of an option with a cashless exercise price equal to the difference between the fair value of the Company’s common stock at the date of grant and the fair value as of the exercise date resulting in the issuance of the Company’s common stock. During the third quarter of 2019, the Company issued 60,000 SARs in relation to the acquisition of Big 3 Precision. Stock-based compensation expense in connection with SARs previously granted to employees in the third quarter of 2019 and 2018 was approximately $108,000 and $74,000, respectively, and for the first nine months of fiscal years 2019 and 2018 was approximately $281,000 and $203,000, respectively. As of September 28, 2019, there were 178,500 shares of Company common stock reserved and available for future grant under the above noted 2010 Plan. The following tables set forth the outstanding SARs for the period specified:
|  | Nine Months Ended September 28, 2019 |  |  | Year Ended December 29, 2018 |
|  | Units |  |  | Weighted - Average Exercise Price |  |  | Units |  |  | Weighted - Average Exercise Price |
Outstanding at beginning of period |  |  | 189,167 |  |  | $ | 21.46 |  |  |  | 141,500 |  |  | $ | 20.36 |
Issued |  |  | 96,000 |  |  |  | 23.99 |  |  |  | 51,000 |  |  |  | 24.90 |
Exercised |  |  | (1,667 | ) |  |  | 19.10 |  |  |  | -- |  |  |  | -- |
Forfeited |  |  | -- |  |  |  | -- |  |  |  | (3,333 | ) |  |  | 19.10 |
Outstanding at end of period |  |  | 283,500 |  |  |  | 22.36 |  |  |  | 189,167 |  |  |  | 21.46 |
SARs Outstanding and Exercisable |
Range of Exercise Prices |  |  | Outstanding as of September 28, 2019 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |  |  | Exercisable as of September 28, 2019 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |
$ | 19.10-26.30 |  |  |  | 283,500 |  |  |  | 3.5 |  |  | $ | 22.36 |  |  |  | 38,003 |  |  |  | 2.5 |  |  |  | 19.10 |
The following tables set forth the outstanding stock grants for the period specified:
|  | Nine Months Ended September 28, 2019 |  |  | Year Ended December 29, 2018 |
|  | Shares |  |  | Weighted - Average Exercise Price |  |  | Shares |  |  | Weighted - Average Exercise Price |
Outstanding at beginning of period |  |  | 25,000 |  |  | $ | — |  |  |  | 25,000 |  |  | $ | — |
Issued |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at end of period |  |  | 25,000 |  |  |  | — |  |  |  | 25,000 |  |  |  | — |
Stock Grants Outstanding and Exercisable |
Range of Exercise Prices |  |  | Outstanding as of September 28, 2019 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |  |  | Exercisable as of September 28, 2019 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |
$ | 0.00 |  |  |  | 25,000 |  |  |  | 2.6 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
As of September 28, 2019, outstanding SARs and options had an intrinsic value of $1,180,600.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration