Stock Options, Other Stock Awards and Warrants (Tables)

12 Months Ended

Dec. 29, 2013

Stock Options, Other Stock Awards and Warrants [Abstract]

Schedule of restricted stock awards and restricted stock units

Restricted Stock Units

The Company on occasion will issue restricted stock or grant restricted stock units to certain key employees. These shares or units are nontransferable and subject to forfeiture for periods prescribed by the Company.  These awards are valued at the market value of the underlying common stock at the date of grant and are subsequently amortized over the periods during which the restrictions lapse, generally between three and five years. During 2013, 2012 and 2011, the Company recognized compensation expense, net of forfeitures, on these awards of $8,732, $2,328 and $1,761, respectively. At December 29, 2013, the amount of total unrecognized compensation cost related to restricted stock units is $37,482 and the weighted average period over which this will be expensed is 40 months.

In October 2012, as part of an Amended and Restated Employment Agreement, the Company's Chief Executive Officer was awarded 587 shares to be granted in two tranches across 2013 and 2014. As of May 2013, both tranches met the accounting definition for grant date and, as such, are being expensed from 2013 through 2017. The expense related to 2013 is included in the aforementioned recognized and unrecognized compensation costs related to restricted stock units. 468 shares of this award are considered granted in 2013 and included in the table below. The remaining shares were granted in February 2014. These awards provide the recipient with the ability to earn shares of the Company's common stock based on the Company's achievement of four stated stock price hurdles and continued employment through December 31, 2017. At the completion of the service period, the recipient will receive one quarter of the award for each stock price hurdle achieved after April 24, 2013. The four stock price hurdles are $45, $52, $56 and $60 which must be met for a period of at least thirty days using the average closing price over such period.

The Company used a Monte Carlo simulation valuation model to determine the fair value of these awards. The following inputs were used in the simulation that resulted in an average grant date fair value for this award of $35.56:

	Inputs
Grant date stock price	$	47.28
Stock price volatility		26.12	%
Risk-free interest rate		0.65	%
Dividend yield		3.38	%

Excluding the aforementioned award for 468 shares, information with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 2013, 2012 and 2011 is as follows:

	2013			2012			2011
Outstanding at beginning of year		296			232			196
Granted		451			92			97
Forfeited		(44	)		(27	)		(3	)
Vested		(1	)		(1	)		(58	)
Outstanding at end of year		702			296			232
Weighted average grant-date fair value:
Granted	$	45.16			36.01			39.81
Forfeited	$	40.40			40.80			40.98
Vested	$	33.62			32.90			34.61
Outstanding at end of year	$	43.10			39.53			41.06

Of the shares vested in 2011, the receipt of 58 shares has been deferred to the date upon which the recipient is no longer employed by the Company.

Schedule of stock performance awards

Information with respect to Stock Performance Awards for 2013, 2012 and 2011 is as follows:

	2013			2012			2011
Outstanding at beginning of year		1,019			1,627			1,878
Granted		358			695			456
Forfeited		(101	)		(144	)		(86	)
Cancelled		(333	)		(682	)		-
Vested		-			(477	)		(621	)
Outstanding at end of year		943			1,019			1,627
Weighted average grant-date fair value:
Granted	$	47.21			36.14			45.66
Forfeited	$	40.24			37.54			32.53
Cancelled	$	45.66			33.76			-
Vested	$	-			22.31			27.10
Outstanding at end of year	$	40.24			39.57			33.52

Schedule of total compensation expense related to stock options, restricted stock units and stock performance awards

Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee members of its Board of Directors, and stock performance awards for the years ended December 29, 2013, December 30, 2012 and December 25, 2011 was $21,272, $19,434 and $12,463, respectively, and was recorded as follows:

	2013		2012		2011
Cost of sales	$	152		146		51
Product development		1,767		1,854		556
Selling, distribution and administration		19,353		17,434		11,856
		21,272		19,434		12,463
Income tax benefit		7,065		6,392		4,202
	$	14,207		13,042		8,261

Schedule of stock option information

Stock Options

Information with respect to stock options for the three years ended December 29, 2013 is as follows:

	2013			2012			2011
Outstanding at beginning of year		9,283			11,004			11,392
Granted		776			1,730			1,080
Exercised		(4,377	)		(3,126	)		(1,267	)
Expired or forfeited		(139	)		(325	)		(201	)
Outstanding at end of year		5,543			9,283			11,004
Exercisable at end of year		3,144			6,094			7,494
Weighted average exercise price:
Granted	$	47.21			36.14			45.66
Exercised	$	26.99			21.23			23.55
Expired or forfeited	$	39.59			35.19			29.35
Outstanding at end of year	$	36.63			31.25			27.75
Exercisable at end of year	$	33.22			27.84			24.35

Schedule of weighted average assumptions used to determine the fair value of option grants

The Company uses the Black-Scholes valuation model in determining the fair value of stock options. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. The weighted average fair value of options granted in fiscal 2013, 2012 and 2011 was $6.94, $6.29 and $9.84, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal years 2013, 2012 and 2011:

	2013			2012			2011
Risk-free interest rate		0.62	%		0.69	%		1.64	%
Expected dividend yield		3.39	%		3.99	%		2.63	%
Expected volatility		26	%		31	%		30	%
Expected option life	5 years			5 years			5 years