Note 14 - Shareholders' Equity

12 Months Ended

Dec. 29, 2012

Stockholders' Equity Note Disclosure [Text Block]

14. Shareholders’ Equity

Equity Plans: The company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, performance shares and other stock rights of up to 5,925,000 shares of common stock to employees and directors.

Stock options granted prior to 2002 vested over a five-year period and are exercisable over a ten-year period commencing from the date of vesting. The stock options granted in 2002 through February 2005, vested over a five-year period and are exercisable over a ten-year period commencing from the date of the grant. Stock options granted after February 2005 vest over a three, four or five-year period and are exercisable over either a seven or ten-year period commencing from the date of the grant. Restricted shares and share units granted by the company vest over three to four years.

The following table provides a reconciliation of outstanding stock options for the fiscal year ended December 29, 2012.

	Shares Under Option			Weighted Average Price		Weighted Average Remaining Contract Life (Years)		Aggregate Intrinsic Value (000’s)
Outstanding December 31, 2011		1,064,251		$	34.42
Granted		128,140			63.09
Exercised		(377,094	)		30.73
Forfeited		(26,847	)		43.45
Outstanding December 29, 2012		788,450			40.53		3.3	$	15,895
Exercisable December 29, 2012		522,263			35.64		2.3		12,774

The following table provides a reconciliation of nonvested restricted share and share unit awards for the fiscal year ended December 29, 2012.

	Shares			Weighted Average Grant-Date Fair Value
Nonvested December 31, 2011		191,167		$	39.66
Granted		96,516			61.57
Vested		(97,176	)		35.32
Forfeited		(7,220	)		47.62
Nonvested December 29, 2012		183,287			53.18

The total intrinsic value of options exercised during 2012, 2011 and 2010 was $9.8 million, $15.6 million, and $7.6 million, respectively.

The company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At December 29, 2012, the unrecognized compensation cost for options, restricted shares and performance shares was $8.6 million before tax, and will be recognized over a weighted-average period of 1.8 years. Compensation cost included as a component of selling, general and administrative expense for all equity compensation plans discussed above was $7.3 million, $5.8 million and $5.2 million for 2012, 2011 and 2010, respectively. The total income tax benefit recognized in the Consolidated Statements of Net Income was $2.6 million, $2.1 million and $1.9 million for 2012, 2011 and 2010, respectively.

The company uses the Black-Scholes option valuation model to determine the fair value of awards granted. The weighted average fair value of and related assumptions for options granted are as follows:

	2012			2011			2010
Weighted average fair value of options granted	$	23.38		$	24.25		$	17.40
Assumptions:
Risk-free interest rate		0.89	%		2.07	%		2.25	%
Expected dividend yield		1.14	%		0.97	%		0	%
Expected stock price volatility		46.0	%		46.0	%		47.0	%
Expected life of options (years)		5.1			5.1			4.5

Expected volatilities are based on the historical volatility of the company’s stock price. The expected life of options is based on historical data for options granted by the company and the SEC simplified method. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption.

Accumulated Other Comprehensive Income (Loss): The components of accumulated other comprehensive income (loss) at the end of the fiscal years 2012, 2011 and 2010 are as follows (in thousands):

	2012			2011			2010
Pension liability adjustments(a)	$	(20,879	)	$	(13,578	)	$	(6,875	)
Gain (loss) on investments(b)		7,867			6,642			9,344
Foreign currency translation adjustment		29,560			15,567			18,772
Total	$	16,548		$	8,631		$	21,241

(a) Net of tax of $11,819, $7,186 and $3,718 for 2012, 2011 and 2010, respectively.

(b) Net of tax of $0, $0 and $0 for 2012, 2011 and 2010, respectively.

Preferred Stock: The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions and optional or other special rights as the Board may fix by resolution.

The Board of Directors authorized the repurchase of up to 1,000,000 shares of the company’s common stock under a program for the period May 1, 2012 to April 30, 2013. The company did not repurchase any shares in fiscal 2012 and 1,000,000 shares remain available for purchase under the initial program as of December 29, 2012.