5. Shareholders’ Equity (Deficit):

Dividends

In 2019, the Company declared and paid quarterly cash dividends totaling $0.90 per share ($3.4 million).

In 2018, the Company declared and paid quarterly cash dividends totaling $0.56 per share ($2.2 million).

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

Repurchase of Common Stock

In February 2019, the Company’s Board of Directors authorized the repurchase of up to 150,000 shares of our common stock for a price of $159.63 per share through a tender offer (the “2019 Tender Offer”). The 2019 Tender Offer began on the date of the announcement, February 28, 2019 and expired March 28, 2019. Upon expiration, the Company accepted for payment 150,000 shares for a total purchase price of approximately $24.0 million, including fees and expenses related to the 2019 Tender Offer. The 2019 Tender Offer was financed in part by net borrowings under the Line of Credit. (See Note 6 – “Debt”).

In 2018 the Company purchased 12,384 shares of our common stock for an aggregate purchase price of $1.8 million or $149.10 per share.

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 6 – “Debt”).

Under a previous Board of Directors’ authorization, as of December 28, 2019 the Company has the ability to repurchase an additional 130,604 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 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. As of December 28, 2019, the Company has authorized up to 700,000 shares of common stock for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2010 Stock Option Plan (the “2010 Plan”).

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.

As of December 28, 2019, 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 28, 2019 was as follows:


				Weighted Average
				Remaining
	Number of	Weighted Average		Contractual Life
	Shares	Exercise Price		(years)	Intrinsic Value
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
Granted	69,000		149.51
Exercised	(79,241)		39.37
Forfeited	(8,563)		119.24
Outstanding, December 29, 2018	639,380		84.12	5.61		47,808,100
Granted	54,800		170.14
Exercised	(190,172)		57.41
Forfeited	(24,450)		138.13
Outstanding, December 28, 2019	479,558	$	101.78	5.79	$	45,283,200
Exercisable, December 28, 2019	344,108	$	83.08	4.69	$	38,930,300

The fair value of options granted under the Option Plans during 2019, 2018 and 2017 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 28, 2019			December 29, 2018			December 30, 2017
Risk free interest rate		1.85	%		2.73	%		2.05	%
Expected life (years)		6			6			6
Expected volatility		19.30	%		19.94	%		25.64	%
Dividend yield		1.38	%		1.13	%		1.10	%
Option fair value	$	30.96		$	32.45		$	32.07

The total intrinsic value of options exercised during 2019, 2018 and 2017 was $22.7 million, $8.3 million and $7.7 million, respectively. The total fair value of shares vested during 2019, 2018 and 2017 was $8.6 million, $7.8 million and $7.3 million, respectively.

During 2019, 2018 and 2017, option holders surrendered 0 shares, 2,249 shares and 2,927 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 28, 2019 have an exercise price equal to the fair market value on the date of the grant.

Compensation expense of $1,666,400, $1,976,100 and $1,956,600 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in 2019, 2018 and 2017, respectively. As of December 28, 2019, the Company had $3.7 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.