(9)	Share-based Compensation

At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation, under the Company’s 2007 Equity and Performance Incentive Plan, as amended and restated in April 2011 and April 2016 (the “Amended 2007 Plan”), and accounts for its share-based compensation in accordance with ASC 718. The Company recognized $0.6 million and $1.2 million in share-based compensation expense for the 13 and 26 weeks ended July 1, 2018, respectively, compared to $0.6 million and $1.2 million in share-based compensation expense recognized for the 13 and 26 weeks ended July 2, 2017, respectively.

Share Option Awards

Share option awards granted by the Company generally vest and become exercisable in four equal annual installments of 25% per year with a maximum life of ten years. The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. In the first half of fiscal 2018, the Company granted 254,900 share option awards with a weighted-average grant-date fair value of $1.23 per option. No share option awards were granted in the first half of fiscal 2017.

A summary of the status of the Company’s share option awards is presented below:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2017		144,293		$	10.11
Granted		254,900			6.22
Exercised		(6,564	)		4.82
Forfeited or Expired		(23,319	)		8.95
Outstanding at July 1, 2018		369,310		$	7.60		7.66	$	492,570
Exercisable at July 1, 2018		108,993		$	10.32		3.04	$	143,751
Vested and Expected to Vest at July 1, 2018		360,672		$	7.63		7.61	$	480,840

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based upon the Company’s most recent closing stock price of $7.60 as of July 1, 2018, which would have been received by the option holders had all option holders exercised their option awards as of that date.

The total intrinsic value of share option awards exercised for the 26 weeks ended July 1, 2018 and July 2, 2017 was approximately $10,000 and $34,000, respectively. The total cash received from employees as a result of employee share option award exercises for the 26 weeks ended July 1, 2018 and July 2, 2017 was approximately $31,000 and $28,000, respectively. The actual tax benefit realized for the tax deduction from share option award exercises of share-based compensation awards in the 26 weeks ended July 1, 2018 and July 2, 2017 totaled $3,000 and $13,000, respectively.

The fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions:

	13 Weeks Ended					26 Weeks Ended
	July 1, 2018			July 2, 2017		July 1, 2018			July 2, 2017
Risk-free interest rate		2.9	%		—		2.6	%		—
Expected term	5.1 years				—	5.1 years				—
Expected volatility		48.0	%		—		48.0	%		—
Expected dividend yield		7.5	%		—		9.5	%		—

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option award; the expected term represents the weighted-average period of time that option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based upon the Company’s current dividend rate.

As of July 1, 2018, there was $0.3 million of total unrecognized compensation expense related to nonvested share option awards granted. That expense is expected to be recognized over a weighted-average period of 3.6 years.

Nonvested Share Awards and Nonvested Share Unit Awards

Nonvested share awards and nonvested share unit awards granted by the Company vest for employees from the date of grant in four equal annual installments of 25% per year. Nonvested share awards and nonvested share unit awards granted by the Company to non-employee directors for their service as directors, as defined by ASC 718, vest 100% on the first anniversary of the grant date.

Nonvested share awards are delivered to the recipient upon their vesting. With respect to nonvested share unit awards, vested shares will be delivered to the recipient on the tenth business day of January following the year in which the recipient’s service to the Company is terminated. The total fair value of nonvested share awards which vested during the first half of fiscal 2018 and 2017 was $1.0 million and $2.0 million, respectively. The total fair value of nonvested share unit awards which vested during the first half of fiscal 2018 and 2017 was $0.3 million and $0.3 million, respectively.

The Company granted 213,062 and 191,000 nonvested share awards in the first half of fiscal 2018 and 2017, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share awards granted in the first half of fiscal 2018 and 2017 was $6.99 and $14.88, respectively.

A summary of the status of the Company’s nonvested share awards is presented below:

	Shares			Weighted- Average Grant- Date Fair Value
Balance at December 31, 2017		377,035		$	13.61
Granted		213,062			6.99
Vested		(144,205	)		13.66
Forfeited		(4,570	)		12.10
Balance at July 1, 2018		441,322		$	10.42

To satisfy employee minimum statutory tax withholding requirements for nonvested share awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In the first half of fiscal 2018, the Company withheld 53,343 common shares with a total value of $0.4 million. This amount is presented as a cash outflow from financing activities in the accompanying interim unaudited condensed consolidated statement of cash flows.

The Company granted 34,884 and 21,000 nonvested share unit awards in the first half of fiscal 2018 and 2017, respectively. The weighted-average grant-date fair value of the Company’s nonvested share unit awards granted in the first half of fiscal 2018 and 2017 was $8.60 and $13.90, respectively.

A summary of the status of the Company’s nonvested share unit awards is presented below:

	Units			Weighted- Average Grant- Date Fair Value
Balance at December 31, 2017		23,250		$	12.82
Granted		34,884			8.60
Vested		(23,250	)		13.71
Forfeited		—			—
Balance at July 1, 2018		34,884		$	8.01

As of July 1, 2018, there was $3.9 million and $0.3 million of total unrecognized compensation expense related to nonvested share awards and nonvested share unit awards, respectively. That expense is expected to be recognized over a weighted-average period of 2.8 years and 0.9 years for nonvested share awards and nonvested share unit awards, respectively.