6. Shareholders’ Equity (Deficit):

Dividends

In 2017, the Company declared and paid quarterly cash dividends totaling $0.43 per share ($1.8 million).

In 2016, the Company declared and paid quarterly cash dividends totaling $0.37 per share ($1.5 million).

In 2015, the Company declared and paid quarterly cash dividends totaling $0.27 per share ($1.2 million).

Repurchase of Common Stock

In July 2017, the Company’s Board of Directors authorized the repurchase of up to 400,000 shares of our common stock for a price of $124.48 per share through a tender offer (the “2017 Tender Offer”). The 2017 Tender Offer began on the date of the announcement, July 19, 2017 and expired on August 16, 2017. Upon expiration, the Company accepted for payment 400,000 shares for a total purchase price of approximately $49.9 million, including fees and expenses related to the 2017 Tender Offer. The 2017 Tender Offer was financed by net borrowings under the Line of Credit and Notes Payable. (See Note 7 – “Debt”).

In 2016 the Company purchased 17,194 shares of our common stock for an aggregate purchase price of $1.6 million or $91.54 per share.

In April 2015, the Company’s Board of Directors authorized the repurchase of up to 875,000 shares of our common stock for a price of $84.72 per share through a tender offer (the “2015 Tender Offer”). The 2015 Tender Offer began on the date of the announcement, April 15, 2015 and expired on May 13, 2015. Upon expiration, the Company accepted for payment 875,000 shares for a total purchase price of approximately $74.3 million, including fees and expenses related to the 2015 Tender Offer. The 2015 Tender Offer was financed by a combination of cash on hand as well as net borrowings under the Line of Credit and Notes Payable. (See Note 7 – “Debt”).

In addition to the 2015 Tender Offer, during 2015, the Company repurchased 6,518 shares for an aggregate purchase price of $0.6 million or $90.85 per share.

Under a previous Board of Directors’ authorization, as of December 30, 2017 the Company has the ability to repurchase an additional 142,988 shares of its common stock. Repurchases may be made from time to time at prevailing prices, subject to certain restrictions on volume, pricing and timing.

Stock Option Plans and Stock-Based Compensation

The Company had authorized up to 750,000 shares of common stock be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2001 Stock Option Plan (the “2001 Plan”). The 2001 Plan expired on February 20, 2011. At the April 26, 2017 Annual Shareholders meeting, the Company’s shareholders approved an increase in the shares of common stock available for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2010 Stock Option Plan (the “2010 Plan”) by 200,000 shares, from 500,000 to 700,000.

Grants under the 2001 Plan and 2010 Plan are made by the Compensation Committee of the Board of Directors at a price of not less than 100% of the fair market value on the date of grant. If an incentive stock option is granted to an individual who owns more than 10% of the voting rights of the Company’s common stock, the option exercise price may not be less than 110% of the fair market value on the date of grant. The term of the options may not exceed 10 years, except in the case of nonqualified stock options, whereby the terms are established by the Compensation Committee. Options may be exercisable in whole or in installments, as determined by the Compensation Committee.

The Company also sponsors a Stock Option Plan for Nonemployee Directors (the “Nonemployee Directors Plan”), and has reserved a total of 350,000 shares for issuance to directors of the Company who are not employees.

Stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan (collectively, the “Option Plans”) as of December 30, 2017 was as follows:


				Weighted Average
				Remaining
	Number of	Weighted Average		Contractual Life
	Shares	Exercise Price		(years)	Intrinsic Value
Outstanding, December 27, 2014	597,700	$	48.50	6.93	$	20,973,700
Granted	79,400		91.46
Exercised	(8,360)		38.46
Outstanding, December 26, 2015	668,740		53.73	6.41		25,582,300
Granted	69,600		112.07
Exercised	(61,169)		26.21
Forfeited	(3,501)		80.31
Outstanding, December 31, 2016	673,670		62.11	6.11		43,139,100
Granted	69,500		128.00
Exercised	(80,236)		33.41
Forfeited	(4,750)		95.28
Outstanding, December 30, 2017	658,184	$	72.33	5.87	$	37,723,800
Exercisable, December 30, 2017	476,780	$	58.41	4.84	$	33,845,900

The fair value of options granted under the Option Plans during 2017, 2016 and 2015 were estimated on the date of the grant using the Black-Scholes option pricing model with the following weighted average assumptions and results:


	Year Ended
	December 30, 2017			December 31, 2016			December 26, 2015
Risk free interest rate		2.05	%		1.80	%		1.71	%
Expected life (years)		6			6			6
Expected volatility		25.64	%		27.13	%		30.15	%
Dividend yield		1.10	%		1.23	%		1.36	%
Option fair value	$	32.07		$	28.54		$	24.88

The total intrinsic value of options exercised during 2017, 2016 and 2015 was $7.7 million, $4.8 million and $0.4 million, respectively. The total fair value of shares vested during 2017, 2016 and 2015 was $7.3 million, $6.9 million and $6.2 million, respectively.

During 2017, 2016 and 2015, option holders surrendered 2,927 shares, 2,973 shares and 587 shares, respectively, of previously owned common stock as payment for option shares exercised as provided for by the Option Plans. All unexercised options at December 30, 2017 have an exercise price equal to the fair market value on the date of the grant.

Compensation expense of $1,956,600, $1,776,600 and $1,694,800 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in 2017, 2016 and 2015, respectively. As of December 30, 2017, the Company had $4.3 million of total unrecognized compensation expense related to stock options that is expected to be recognized over the remaining weighted average vesting period of approximately 2.6 years.