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Stock Options, Stock Grants and New Stock | 12 Months Ended
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Dec. 29, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock Options, Stock Grants and New Stock Issues | Stock Options, Stock Grants and New Stock Issues A summary of activity in the Company's stock option plans is as follows:
| Weighted Average Exercise Price |  | Options Outstanding |  | Weighted Average Contractual Term (in years) |  | Intrinsic Value of Options |  | Options Available
At January 2, 2010 | $ | 8.92 |  |  | 82,993 |  |  | 4.5 |  | $ | 76,923 |  |  | — |
Exercised | $ | 4.97 |  |  | (9,900 | ) |  |  |  |  |  |
Canceled / Expired | $ | 9.96 |  |  | (29,093 | ) |  |  |  |  |  |  | — |
At January 1, 2011 | $ | 9.13 |  |  | 44,000 |  |  | 3.6 |  | $ | 131,670 |  |  | — |
2011 option plan |  |  |  |  |  |  |  |  |  |  |  | 350,000 |
Granted January 24, 2011 | $ | 11.55 |  |  | 100,000 |  |  |  |  |  |  | (100,000 | )
Exercised | $ | 9.15 |  |  | (19,200 | ) |  |  |  |  |  |  |  |
Canceled / Expired | $ | 9.96 |  |  | (4,000 | ) |  |  |  |  |  |  | — |
At December 31, 2011 | $ | 11.28 |  |  | 120,800 |  |  | 8.0 |  | $ | 6,448 |  |  | 250,000 |
Granted February 9, 2012 | $ | 11.35 |  |  | 36,740 |  |  |  |  |  |  |  | (36,740 | )
Granted August 21, 2012 | $ | 12.73 |  |  | 75,000 |  |  |  |  |  |  | (75,000 | )
Exercised | $ | 10.50 |  |  | (11,800 | ) |  |  |  |  |  |  |  |
Canceled / Expired | $ | — |  |  | — |  |  |  |  |  |  |  | — |
At December 29, 2012 | $ | 11.82 |  |  | 220,740 |  |  | 8.4 |  | $ | 367,937 |  |  | 138,260 |
Exercisable options | $ | 10.84 |  |  | 29,000 |  |  | 5.4 |  | $ | 76,930 |  |  |  |
Options expected to vest: |  |  |  |  |  |  |  |  | Grant Date Fair Value |  |  |
At January 1, 2011 | $ | — |  |  | — |  |  | — |  | $ | — |  |  |  |
Granted January 24, 2011 | $ | 11.55 |  |  | 100,000 |  |  |  |  | $ | 7.93 |  |  |
Vested | $ | — |  |  | — |  |  |  |  |  |  |  |  |
At December 31, 2011 | $ | 11.55 |  |  | 100,000 |  |  | 9.1 |  | $ | 7.93 |  |  |  |
Granted February 9, 2012 | $ | 11.35 |  |  | 36,740 |  |  |  |  | $ | 5.03 |  |  |  |
Granted August 21, 2012 | $ | 12.73 |  |  | 75,000 |  |  |  |  | $ | 5.44 |  |  |
Vested | $ | 11.55 |  |  | (20,000 | ) |  |  |  |  |  |  |
At December 29, 2012 | $ | 11.97 |  |  | 191,740 |  |  | 8.9 |  | $ | 6.40 |  |  |  |
The following table summarizes information about stock options outstanding at December 29, 2012:
Range of Exercise Prices |  | Outstanding Stock Options |  | Exercisable Stock Options
| Shares |  | Weighted Average |  | Shares |  | Weighted Average Exercise Price
|  | Exercise Price |  | Remaining Contractual Life in Years |  |
$ | 9.96 |  |  | 13,000 |  |  | $ | 9.96 |  |  | 2.09 |  | 13,000 |  |  | $ | 9.96 |
$ | 11.35 |  |  | 36,740 |  |  | $ | 11.35 |  |  | 9.11 |  | — |  |  |
$ | 11.55 |  |  | 96,000 |  |  | $ | 11.55 |  |  | 8.07 |  | 16,000 |  |  | $ | 11.55 |
$ | 12.73 |  |  | 75,000 |  |  | $ | 12.73 |  |  | 9.64 |  | — |  |  |
|  |  | 220,740 |  |  |  |  |  |  |  | 29,000 |  |  |  |
On January 21, 2011, the Board of Directors of the Company adopted the 2011 Long-Term Incentive Stock Option Plan (the "2011 Plan") which was approved by the shareholders at the April 28, 2011 Annual Meeting. The 2011 Plan authorizes the issuance of incentive options for up to 350,000 shares of the Company's common stock. All shares granted under this plan may be exercised beginning one year after the date of the grant at a rate of 20 percent annually on a cumulative basis and unexercised options expire ten years from the grant date. On February 9, 2012, the Company granted options to purchase 36,740 shares of its common stock at an exercise price of $11.35 to participants in the 2011 Plan and an additional 75,000 options were granted on August 21, 2012 to the President of Palmer in connection with his employment agreement with the Company at an exercise price of $12.73. The fair value of the option grants were $5.03 and $5.44, respectively. The fair value of the grants were estimated using the Black-Scholes option-pricing model based on a risk-free interest rate of 2.04 percent and 1.80 percent, respectively, an expected volatility of 0.53 and 0.51, respectively, with both grants using an expected life of seven years and a dividend yield of 2.10 percent. The Company granted options to purchase 100,000 shares of its common stock at an exercise price of $11.55 to its CEO on January 24, 2011. The per share weighted-average fair value of the stock options granted during 2011 was $7.93. The Black-Scholes model for this grant was based on a risk-free interest rate of 3.34 percent, an expected life of seven years, an expected volatility of 0.49 and a dividend yield of 2.10 percent. Prior to the 2011 Plan, the Company had two stock option plans, neither of which have options available for future issuance after April 30, 2008. Under the 1998 Plan covering officers and key employees, options may be exercised beginning one year after date of grant at a rate of 20 percent annually on a cumulative basis, and unexercised options expire ten years from the grant date. Under the 1994 Non-Employee Directors' Plan, options were exercisable at the date of grant. Shares issued under both stock option plans come from shares held in treasury with the Company. The 2011 Plan and the 1998 Plan are incentive stock option plans, therefore there are no income tax consequences to the Company when an option is granted or exercised. In 2012, 2011 and 2010, options for 11,800, 19,200 and 9,900 shares were exercised by employees and directors for an aggregate exercise price of $124,000, $176,000 and $49,000, respectively. The proceeds were generated from cash received of $124,000 in 2012, from cash received of $162,000 and from the repurchase of 1,045 shares from employees and directors totaling $14,000 in 2011 and from cash received of $39,000 and from the repurchase of 1,016 shares from employees and directors totaling $10,000 in 2010. At the 2012, 2011 and 2010 respective year ends, options to purchase 29,000, 20,800 and 44,000 shares with weighted average exercise prices of $10.84, $9.96 and $9.13, respectively, were fully exercisable. Compensation cost charged against income before taxes for the options was approximately $228,000 for 2012, $111,000 for 2011 and $7,000 for 2010. As of December 29, 2012, there was $1,046,000 of unrecognized compensation cost related to unvested stock options granted under the Company's stock option plans. The weighted average period over which the stock option compensation cost is expected to be recognized is 3.79 years. The Company has a stock awards plan in effect at December 29, 2012. A summary of plan activity for 2010, 2011 and 2012 is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Outstanding at January 2, 2010 | 23,134 |  |  | $ | 17.62 |
Granted February 24, 2010 | 51,500 |  |  | $ | 7.88 |
Vested | (7,059 | ) |  | $ | 19.30 |
Forfeited | (19,235 | ) |  | $ | 8.89 |
Outstanding at January 1, 2011 | 48,340 |  |  | $ | 10.47 |
Granted January 24, 2011 | 13,420 |  |  | $ | 11.55 |
Granted February 9, 2011 | 13,300 |  |  | $ | 13.34 |
Vested | (12,290 | ) |  | $ | 12.81 |
Forfeited | (19,198 | ) |  | $ | 9.62 |
Outstanding at December 31, 2011 | 43,572 |  |  | $ | 11.39 |
Vested | (11,099 | ) |  | $ | 12.60 |
Forfeited | — |  |  |  |
Outstanding at December 29, 2012 | 32,473 |  |  | $ | 10.98 |
The Compensation & Long-Term Incentive Committee of the Board of Directors of the Company approves stock grants under the Company's 2005 Stock Awards Plan to certain management employees of the Company. The stock awards vest in 20 percent increments annually on a cumulative basis, beginning one year after the date of grant from shares held in treasury with the Company. In order for the awards to vest, the employee must be in the continuous employment of the Company since the date of the award. Any portion of an award that has not vested is forfeited upon termination of employment. The Company may terminate any portion of the award that has not vested upon an employee's failure to comply with all conditions of the award or the 2005 Stock Awards Plan. An employee is not entitled to any voting rights with respect to any shares not yet vested, and the shares are not transferable. There were no grants issued in 2012. Compensation expense totaling $332,000 and $406,000 on the grants issued in 2011 and 2010, respectively, is being charged against earnings equally before forfeitures, if any, over a period of 60 months from the dates of the grants, with the offset recorded in Shareholders' Equity. Compensation cost charged against income for the awards was approximately $110,000, $70,000 net of income taxes, or $0.01 per share for 2012, $165,000, $105,000 net of income taxes, or $0.02 per share for 2011 and $174,000, $110,000 net of income taxes, or $0.02 per share, for 2010. As of December 29, 2012, there was $262,000 of total unrecognized compensation cost related to unvested stock grants under the 2005 Stock Awards Plan. The weighted average period over which the stock grant compensation cost is expected to be recognized is 2.86 years. On April 27, 2012, the Company issued to each of its non-employee directors 1,598 shares of its common stock from shares held in treasury with the Company (an aggregate of 7,990 shares). The Company issued 7,238 shares and 1,531 shares to non-employee directors in 2011 and 2010, respectively. Such shares were issued to the directors in lieu of $20,000 of their annual cash retainer fees for 2012 and $15,000 of their annual cash retainer fees for 2011 and 2010. During 2011, two non-employee directors resigned/retired from the Board of Directors resulting in the forfeiture of 1,248 shares.

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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 SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 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 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: 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 + Details
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