Note M - Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders Equity And Share Based Payment Disclosure [Text Block]

NOTE M - STOCKHOLDERS’ EQUITY

Each share of Class B Common Stock is freely convertible into one share of Class A Common Stock at the option of the Class B stockholder. Holders of Class A Common Stock are entitled to one vote per share and holders of Class B Common Stock are entitled to ten votes per share for all matters submitted to a vote of the stockholders of the Company, other than the election of directors. Holders of Class A Common Stock are initially entitled to elect two directors and holders of Class B Common Stock are entitled to elect all directors other than directors that the holders of Class A Common Stock are entitled to elect. If the number of members of the Company’s Board of Directors is increased to not less than eleven and not greater than fifteen (excluding directors representing holders of Preferred Stock, if any), holders of Class A Common Stock will be entitled to elect three directors. If the number of members of the Company’s Board of Directors is increased to a number greater than fifteen (excluding directors representing holders of Preferred Stock, if any), holders of Class A Common Stock will be entitled to elect four directors.

In 1999, the Company adopted the 1999 Stock Incentive Plan under which it was authorized to award up to 2,400,000 shares or options to employees and directors of the Company. As amended, the number of options or awards available for issuance under the 1999 Stock Incentive Plan was 4,600,000 shares of Class A Common Stock. The awards have a term of ten years and generally become fully vested between the grant date and the ninth year following the grant date. At December 31, 2011, there were no awards available under the 1999 Stock Incentive Plan for future grants.

In 2009, the Company adopted the 2009 Stock Incentive Plan under which it is authorized to award up to 3,000,000 shares or options of the Company’s Class A Common Stock to employees and directors of the Company. The awards have a term of ten years and generally become fully vested between the third and fifth years following the grant date. At December 31, 2011, 1,637,000 awards remain available for grant under the 2009 Stock Incentive Plan.

The following table summarizes compensation costs related to the Company’s stock-based compensation plans (in thousands) for the year ended December 31:

	2011			2010			2009
Cost of goods sold	$	(124	)	$	146		$	210
Selling, general and administrative expenses		1,020			1,543			2,981
Pre-tax stock-based compensation expenses		896			1,689			3,191
Income tax expense/(benefit)		22			(65	)		(1,080	)
Total stock-based compensation expenses	$	918		$	1,624		$	2,111

There were no capitalized stock-based compensation costs during the years ended December 31, 2011, 2010 and 2009. The Company recognizes stock-based compensation expense using the graded-vesting attribution method. The remaining unrecognized compensation expense related to unvested awards at December 31, 2011 was $4,735,000 and the weighted-average period of time over which this expense will be recognized is approximately 2.8 years. This amount does not include the cost of any additional options that may be granted in future periods nor any changes in the Company’s forfeiture rate. In connection with the exercise of options, the Company realized an income tax benefit in the year ended December 31, 2009 that has been credited to additional paid-in capital. There were no modifications to stock option awards during the years ended December 31, 2011, 2010 and 2009.

The fair value of stock options at date of grant was estimated using the Black-Scholes model. The expected life of employee stock options is determined using historical data of employee exercises and represents the period of time that stock options are expected to be outstanding. The risk-free interest rate is based on the U.S. Treasury constant maturity for the expected life of the stock option. Expected volatility is based on the historical volatilities of the Company’s Class A Common Stock. The Black-Scholes model was used with the following assumptions:

	2011			2010			2009
Expected life (years)		6			6			5
Risk-free interest rate		1.4	%		2.4	%		2.0	%
Expected volatility		51.6	%		46.0	%		45.5	%
Expected dividend yield		0.0	%		0.0	%		0.0	%

The following table summarizes stock option transactions for 2011, 2010 and 2009:

	Shares			Weighted average exercise price		Weighted average remaining contractual life (in years)		Aggregate intrinsic value
Options outstanding January 1, 2009		2,176,345		$	9.37
Granted		995,165			6.96
Exercised		(281,365	)		3.31
Canceled		(118,080	)		12.59
Options outstanding December 31, 2009		2,772,065			8.98
Granted		318,300			11.21
Exercised		(241,999	)		5.15
Canceled		(89,471	)		9.95
Options outstanding December 31, 2010		2,758,895			9.54
Granted		1,178,600			4.41
Exercised		(220,498	)		4.82
Canceled		(488,068	)		9.79
Options outstanding December 31, 2011		3,228,929		$	7.95		6.83	$	105,000
Options exercisable December 31, 2011		1,176,050		$	10.39		3.91	$	27,000

Options exercisable at December 31, 2010 and 2009 were 1,297,454 and 1,321,720, respectively. The weighted-average grant-date fair value of stock options granted during 2011, 2010 and 2009 was $2.18, $5.35 and $2.82, respectively.

The Company reflects income tax benefits resulting from tax deductions in excess of expense as a financing activity in its consolidated statement of cash flows. Cash proceeds, income tax benefit and intrinsic value of related stock options exercised during the years ended December 31, 2011, 2010 and 2009 were as follows (in thousands):

	2011		2010		2009
Proceeds from stock options exercised	$	1,062	$	1,247	$	931
Income tax benefit related to stock options exercised	$	0	$	0	$	730
Intrinsic value of stock options exercised	$	991	$	1,681	$	1,946

The Company issues new shares of Class A Common Stock to satisfy stock option exercises. Shares that are repurchased under the Company’s current stock repurchase programs will reduce the dilutive impact of the Company’s share-based compensation plans. Treasury Stock is shown on the Company’s Consolidated Balance Sheet as a reduction to stockholders’ equity at the full purchase price of purchased shares until retired. Under its stock repurchase program, the Company did not purchase shares of Class A Common Stock during the year ended December 31, 2011.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure and the tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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