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(4) Share-Based Payments
3 Months Ended
Apr. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
(4) Share-Based Payments

(4) Share-Based Payments

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 is recognized over the period during which an employee is required to provide services in exchange for the award, the requisite service period (usually the vesting period). The Company provides an estimate of forfeitures at initial grant date. Reductions in compensation expense associated with the forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience. The company uses the Black-Scholes option pricing model to determine the fair value of the stock options granted.

 

During the quarters ended April 2, 2016 and March 28, 2015, a total of 129,000 and 123,500 stock options, respectively were granted to employees under the Company’s 2009 Stock Incentive Plan (the “Plan) and a total of 45,000 stock options were granted to outside directors, respectively.

 

During the quarters ended April 2, 2016 and March 28, 2015 the Company issued 1,200 and 41,700 shares, respectively as a result of employee option exercises. During the quarter ended April 2, 2016 there were 40,000 expired stock options and during the quarter ended March 28, 2015 there were no expired stock options.

 

During the quarter ended April 2, 2016 the Company did not repurchase shares. During the quarter ended March 28, 2015 the Company repurchased 21,170 shares from employees to facilitate their exercise of stock options.

 

As of April 2, 2016, there was $428 thousand of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans; that cost is expected to be recognized over a weighted average period of 2.48 years.

 

During the quarters ended April 2, 2016 and March 28, 2015, the Company recognized $79 thousand and $66 thousand, respectively as shared-based compensation expense related to previously granted shares under the Plan.