Note 7 - Shareholders' Equity

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 7 – SHAREHOLDERS’ EQUITY

The following tables depict the activity in the accounts which make up shareholders’ equity for the three and six months ended June 30, 2019 and July 1, 2018:

	SHARES			AMOUNT			ADDITIONAL PAID-IN CAPITAL			RETAINED EARNINGS			PENSION LIABILITY			FOREIGN CURRENCY TRANSLATION ADJUSTMENT			CASH FLOW HEDGE
	(In thousands)
Balance, at December 30, 2018		59,508		$	5,951		$	270,269		$	222,214		$	(43,610	)	$	(101,487	)	$	1,326
Net income		0			0			0			7,059			0			0			0
Stock issuances under employee plans		509			51			379			0			0			0			0
Other issuances of common stock		224			22			3,900			0			0			0			0
Unamortized stock compensation expense related to restricted stock awards		0			0			(3,922	)		0			0			0			0
Cash dividends paid		0			0			0			(3,900	)		0			0			0
Forfeitures and compensation expense related to stock awards		(225	)		(22	)		29			0			0			0			0
Share repurchases		0			0			0			0			0			0			0
Pension liability adjustment		0			0			0			0			(91	)		0			0
Foreign currency translation adjustment		0			0			0			0			0			(5,203	)		0
Cash flow hedge unrealized loss		0			0			0			0			0			0			(3,306	)
Balance, at March 31, 2019		60,016		$	6,002		$	270,655		$	225,373		$	(43,701	)	$	(106,690	)	$	(1,980	)
Net income		0			0			0			29,499			0			0			0
Stock issuances under employee plans		2			0			6			0			0			0			0
Other issuances of common stock		(1	)		0			0			0			0			0			0
Unamortized stock compensation expense related to restricted stock awards		0			0			52			0			0			0			0
Cash dividends paid		0			0			0			(3,863	)		0			0			0
Forfeitures and compensation expense related to stock awards		(28	)		(3	)		1,506			0			0			0			0
Share repurchases		(1,556	)		(156	)		(24,998	)		0			0			0			0
Pension liability adjustment		0			0			0			0			829			0			0
Foreign currency translation adjustment		0			0			0			0			0			4,249			0
Cash flow hedge unrealized gain		0			0			0			0			0			0			(4,667	)
Balance, at June 30, 2019		58,433		$	5,843		$	247,221		$	251,009		$	(42,872	)	$	(102,441	)	$	(6,647	)

	SHARES			AMOUNT			ADDITIONAL PAID-IN CAPITAL			RETAINED EARNINGS			PENSION LIABILITY			FOREIGN CURRENCY TRANSLATION ADJUSTMENT			CASH FLOW HEDGE
	(In thousands)
Balance, at December 31, 2017		59,806		$	5,981		$	271,271		$	187,433		$	(56,554	)	$	(78,943	)	$	904
Net income		0			0			0			15,084			0			0			0
Stock issuances under employee plans		175			17			102			0			0			0			0
Other issuances of common stock		187			19			4,769			0			0			0			0
Unamortized stock compensation expense related to restricted stock awards		0			0			(4,788	)		0			0			0			0
Cash dividends paid		0			0			0			(3,868	)		0			0			0
Forfeitures and compensation expense related to stock awards		(55	)		(6	)		3,185			0			0			0			0
Share repurchases		(615	)		(61	)		(14,424	)		0			0			0			0
Pension liability adjustment		0			0			0			0			(2,216	)		0			0
Foreign currency translation adjustment		0			0			0			0			0			8,830			0
Cash flow hedge unrealized loss		0			0			0			0			0			0			1,632
Balance, at April 1, 2018		59,498		$	5,950		$	260,115		$	198,649		$	(58,770	)	$	(70,113	)	$	2,536
Net income		0			0			0			20,602			0			0			0
Stock issuances under employee plans		4			0			35			0			0			0			0
Other issuances of common stock		0			0			0			0			0			0			0
Unamortized stock compensation expense related to restricted stock awards		0			0			0			0			0			0			0
Cash dividends paid		0			0			0			(3,868	)		0			0			0
Forfeitures and compensation expense related to stock awards		(9	)		(1	)		2,135			0			0			0			0
Share repurchases		(0	)		(0	)		0			0			0			0			0
Pension liability adjustment		0			0			0			0			3,459			0			0
Foreign currency translation adjustment		0			0			0			0			0			(20,773	)		0
Cash flow hedge unrealized gain		0			0			0			0			0			0			647
Balance, at July 1, 2018		59,493		$	5,949		$	262,285		$	215,383		$	(55,311	)	$	(90,886	)	$	3,183

Repurchase of Common Stock

In the second quarter of 2017, the Company adopted a share repurchase program in which the Company was authorized to repurchase up to $100 million of its outstanding shares of common stock. During the second quarter of 2019, the Company repurchased the remaining $25.2 million of its outstanding shares of common stock authorized pursuant to this share repurchase program, thus completing the program. 

Stock Option Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award.

All outstanding stock options vested prior to the end of 2013, and therefore there was no stock option compensation expense in the first six months of 2019 or 2018.

As of June 30, 2019, there were 27,500 stock options outstanding and exercisable, at an average exercise price of $12.43 per share. There were no stock options granted in 2019 or 2018. There were 10,000 stock options exercised and 5,000 stock options forfeited in the first six months of 2019. There were 10,000 stock options exercised in the first six months of 2018 and no forfeitures during those six months. The aggregate intrinsic value of the outstanding and exercisable stock options was $0.1 million as of June 30, 2019.

Restricted Stock Awards

During the six months ended June 30, 2019 and July 1, 2018, the Company granted restricted stock awards for 224,000 and 192,000 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a 1 to 3-year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was $1.5 million and $2.0 million for the six months ended June 30, 2019, and July 1, 2018, respectively. The Company estimates forfeitures for restricted stock and reduces compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate actual experience against the assumed forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of June 30, 2019, as well as activity during the six months then ended:

	Restricted Shares			Weighted Average Grant Date Fair Value
Outstanding at December 30, 2018		549,000		$	27.65
Granted		224,000			17.54
Vested		(211,000	)		18.30
Forfeited or canceled		(37,000	)		20.87
Outstanding at June 30, 2019		525,000		$	27.57

As of June 30, 2019, the unrecognized total compensation cost related to unvested restricted stock was $5.7 million. That cost is expected to be recognized by the end of 2022.

Performance Share Awards

During the six months ended June 30, 2019 and July 1, 2018, the Company issued awards of performance shares to certain employees. These awards vest based on the achievement of certain performance-based goals over a performance period of 1 to 3 years, subject to the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company’s election. The number of shares that may be issued in settlement of the performance shares to the award recipients may be greater (up to 200%) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards.

The following table summarizes the performance shares outstanding as of June 30, 2019, as well as the activity during the six months then ended:

	Shares			Weighted Average Grant Date Fair Value
Outstanding at December 30, 2018		759,500		$	20.17
Granted		344,500			17.54
Vested		(472,000	)		18.85
Forfeited or canceled		(57,000	)		20.42
Outstanding at June 30, 2019		575,000		$	19.65

Compensation expense related to the performance shares was $3.3 million and $3.6 million for the six months ended June 30, 2019, and July 1, 2018, respectively. Unrecognized compensation expense related to these performance shares was approximately $6.0 million as of June 30, 2019. That cost is expected to be recognized by the end of 2022.

The tax benefits recognized with regard to restricted stock and performance shares were approximately $0.9 million for the six months ended June 30, 2019.