Incentive Stock Compensation Plans

9 Months Ended

Aug. 28, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Incentive Stock Compensation Plans [Text Block]

INCENTIVE STOCK COMPENSATION PLANS

As of August 28, 2011, the Company had outstanding grants under the following share-based compensation plans:

• 2001 Stock Incentive Plan ("2001 Plan") - The 2001 Plan was terminated in 2004, except as to the outstanding stock options and restricted stock grants.  Non-employee directors were granted options under the 2001 Plan to purchase the Company's Common Stock at prices not less than 100% of market value on the date of grant.  Such options have vested and terminate ten years from the date of grant. At August 28, 2011, there were 6,000 shares subject to such stock options.

• 2004 Stock Incentive Plan ("2004 Plan") - The 2004 Plan serves as the successor to the 2001 Plan and supersedes that plan.  A total of 525,000 new shares of Common Stock were made available for awards to key employees and non-employee directors which may include, but are not limited to, stock options and restricted stock grants.  Non-employee directors were granted options under the 2004 Plan to purchase the Company's Common Stock at prices not less than 100% of market value on the date of grant.  Such options vest in equal annual installments over four years and terminate ten years from the date of grant.  At August 28, 2011, there were 15,052 shares subject to such granted stock options. Key employees and non-employee directors were granted restricted stock under the 2004 Plan.  Such restricted stock typically vests in equal annual installments over three years.  

In addition to the above, in 2001, non-employee directors were granted options to purchase the Company's Common Stock at prices not less than 100% of market value on the date of grant.  Such options vested in equal annual installments over four years and terminated ten years from the date of grant.  During the nine months ended August 28, 2011, 2,000 shares were issued from treasury stock upon the exercise of such stock options. At August 28, 2011, there were no shares subject to such stock options.

The Company's income before income taxes for the three months ended August 28, 2011 included compensation expense of $324,000, related to stock-based compensation arrangements, compared to $286,000 in 2010.  Tax benefit related to this expense was $126,000 in 2011, compared to $112,000 in 2010. For the nine months ended August 28, 2011 and August 29, 2010, compensation expenses related to stock-based compensation arrangements were $1,552,000 and $1,719,000,respectively. Tax benefits related to these expenses were $605,000 and $670,000, respectively.  There were no capitalized share-based compensation costs for the three and nine months ended August 28, 2011 and August 29, 2010, respectively.

The Company recognized a tax deficiency related to stock-based compensation of $836,000 and $689,000 for the nine months ended August 28, 2011 and August 29, 2010, respectively.

The following table summarizes the stock option activity in the nine months ended August 28, 2011:

Options	Number of Options		Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at November 30, 2010	23,052		$	43.07
Granted	—		—
Exercised	(2,000	)	20.28
Outstanding at August 28, 2011	21,052		45.23		3.16	$	890
Options exercisable at August 28, 2011	20,102		42.58		3.01	$	890

For the nine months ended August 28, 2011, 2,000 option shares were exercised; and no option shares were granted, forfeited or expired. For the nine months ended August 29, 2010, 11,250 option shares were exercised; and no option shares were granted, forfeited or expired. The aggregate intrinsic value in the table above represents the total pretax intrinsic value, which is the difference between the closing price of the Company's Common Stock on the last trading day of the third quarter of 2011 and the exercise price times the number of shares that would have been received by the option holders if they exercised their options on such date.  This amount will change based on the fair market value of the Company's Common Stock.

As of August 28, 2011, there was $2,185,000 of total unrecognized compensation cost related to stock-based compensation arrangements.  That cost is expected to be recognized over a weighted-average period of three years.

For the three and nine months ended August 28, 2011, 500 and 39,400 shares of restricted stock were granted, respectively. The weighted-average, grant-date fair value of such stock was $66.63 and $69.76, respectively. The fair value of restricted stock which vested during the three and nine months ended August 28, 2011 was $369,000 and $2,042,000, respectively. There were no shares granted for the three months ended August 29, 2010. For the nine months ended August 29, 2010, 22,300 shares of restricted stock were granted and the weighted-average, grant-date fair value of such stock was $65.67.  In 2007, the Company agreed to provide to a key employee 18,000 shares of Common Stock to be granted and fully vested in the first quarter of 2010.  Additionally, in the second quarter of 2010, the key employee was issued 8,000 shares related to performance stock units granted in 2007. The fair value of vested restricted stock and stock from such 2007 awards, for the three and nine months ended August 29, 2010, was zero and $3,381,000, respectively. For the nine months ended August 28, 2011 and August 29, 2010, 500 and 6,000 shares of restricted stock were forfeited with a fair value of $35,000 and $286,000, respectively.

Net cash proceeds from stock options exercised in the nine months ended August 28, 2011 and August 29, 2010 were $41,000 and $332,000, respectively. The Company's policy is to issue shares from its authorized shares upon the exercise of stock options.