COMMON AND PREFERRED STOCK

12 Months Ended

Dec. 31, 2011

COMMON AND PREFERRED STOCK

(5) COMMON AND PREFERRED STOCK

(a) Shares Authorized and Issued

At December 31, 2011 and January 1, 2011 the company had 47,500,000, shares of common stock and 2,000,000 shares of non-voting preferred stock authorized. At December 31, 2011 and January 1, 2011, there were 18,655,910 and 18,458,011, respectively, shares of common stock outstanding.

(b) Treasury Stock

In July 1998, the company's Board of Directors adopted a stock repurchase program and during 1998 authorized the purchase of up to 1,800,000 common shares in open market purchases. As of December 31, 2011, 1,540,183 shares had been purchased under the 1998 stock repurchase program and 259,817 remain authorized for repurchase.

At December 31, 2011, the company had a total of 4,437,428 shares in treasury amounting to $126.7 million.

(c) Share-Based Awards

The company maintains several stock incentive plans under which the company's Board of Directors issues stock options and makes restricted share grants to key employees. Stock options issued under the plans provide key employees with rights to purchase shares of common stock at specified exercise prices. Options may be exercised upon certain vesting requirements being met, but expire to the extent unexercised within a maximum of ten years from the date of grant. Restricted share grants issued to employees are transferable upon certain vesting requirements being met.

· 1998 Stock Incentive Plan (the "1998 Plan"), as amended on December 15, 2003. Effective February 15, 2008 and in accordance with plan parameters, the company is no longer permitted to make grants under the 1998 Plan. Accordingly, no shares are available for issuance under the 1998 Plan.  

As of December 31, 2011, a total of 3,363,506 share-based awards have been issued under the 1998 Plan.  This includes 928,186 restricted share grants, of which 132,072 remain unvested and 123,514 have been cancelled. This also includes 2,435,320 stock options, of which 1,733,650 have been exercised and 706,670 remain outstanding.

· 2007 Stock Incentive Plan (the "2007 Plan"), as amended on May 7, 2009. Effective August 11, 2011 and in accordance with plan parameters, the company is no longer permitted to make grants under the 2007 Plan. Accordingly, no additional shares are available for issuance under the 2007 Plan.

As of December 31, 2011, a total of 894,518 share-based awards have been issued under the 2007 Plan. This includes 890,889 restricted share grants, of which 555,288 remain outstanding and unvested.  This also includes 3,629 stock options, of which 708 have been exercised and 2,597 remain outstanding.

· 2011 Stock Incentive Plan (the "2011 Plan"). A maximum amount of 550,000 shares can be issued under the 2011 Plan.

As of December 31, 2011, no share-based awards have been issued under the 2011 Plan.

A summary of stock option activity under the 1998 Plan is presented below (amounts in thousands, except share and per share data):

				Weighted		Weighted
				Average		Average		Aggregate
				Exercise		Remaining		Intrinsic
	Shares			Price		Life		Value
Outstanding at January 1, 2011:		724,888		$	9.49		2.36	$	54,312
Granted		—			—
Exercised		(18,218	)		12.95
Forfeited		—			—
Outstanding at December 31, 2011:		706,670		$	9.41		1.36	$	59,809
Exercisable at December 31, 2011:		706,670		$	9.41		1.36	$	59,809
Vested or expected to vest At December 31, 2011		706,670		$	9.41		1.36	$	59,809

A summary of stock option activity under the 2007 Plan is presented below (amounts in thousands, except share and per share data):

				Weighted		Weighted
				Average		Average		Aggregate
				Exercise		Remaining		Intrinsic
	Shares			Price		Life		Value
Outstanding at January 1, 2011:		2,921		$	15.76		1.11	$	200
Granted		—			—
Exercised		—					—
Forfeited		(324	)		25.39
Outstanding at December 31, 2011:		2,597		$	14.56		0.78	$	206
Exercisable at December 31, 2011:		2,597		$	14.56		0.78	$	206
Vested or expected to vest At December 31, 2011		2,597		$	14.56		0.78	$	206

A summary of the company’s nonvested restricted share grant activity under the 1998 and 2007 Plans and related information for fiscal years ended January 1, 2011 and December 31, 2011 is as follows:

				Weighted
				Average
				Grant-Date
	Shares			Fair Value
Nonvested shares at January 2, 2010		679,243		$	53.61
Granted		-		$	-
Vested		(47,250	)	$	44.62
Forfeited		-		$	-
Nonvested shares at January 1, 2011		631,993		$	48.47
Granted		386,000		$	89.98
Vested		(327,933	)	$	83.61
Forfeited		(2,700	)	$	54.81
Nonvested shares at December 31, 2011		687,360		$	65.78

The company issues share-based awards from shares that have been authorized as new share issuances. The company does not anticipate it will be required to repurchase any additional shares of common stock in 2012 to satisfy obligations under its share-based award programs.

Additional information related to the share based compensation is as follows:

	2011		2010		2009
	(dollars in thousands)
Intrinsic value of options exercised	$	1,477	$	2,280	$	1,091
Cash received from exercise		236		666		391
Tax benefit from option exercises		74		450		335