8.Shareholders’ Equity (Deficit):

Dividends

On January 28, 2015, the Company’s Board of Directors approved the payment of a $0.06 per share quarterly cash dividend to shareholders of record at the close of business on February 11, 2015, which was paid on March 2, 2015.

On April 29, 2015, the Company’s Board of Directors approved the payment of a $0.07 per share quarterly cash dividend to shareholders of record at the close of business on May 13, 2015, which was paid on June 1, 2015.

On July 29, 2015, the Company’s Board of Directors approved the payment of a $0.07 per share quarterly cash dividend to shareholders of record at the close of business on August 12, 2015, which was paid on September 1, 2015.

Repurchase of Common Stock

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 “Tender Offer”). The 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 Tender Offer.

Under a previous Board of Directors’ authorization, as of September 26, 2015, the Company has the ability to repurchase an additional 166,700 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. The Company has authorized up to 500,000 shares of common stock to be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2010 Stock Option Plan (the “2010 Plan”).

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 September 26, 2015 was as follows:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Intrinsic Value
Outstanding at December 27, 2014	597,700		$	48.50	6.93	$	20,973,700
Granted	39,700		91.93
Exercised	(5,106	)	40.52

Outstanding at September 26, 2015	632,294		$	51.29	6.41	$	30,798,700

Exercisable at September 26, 2015	397,392		$	38.58	5.28	$	24,405,900

The fair value of options granted under the Option Plans during the first nine months of 2015 and 2014 were estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results:

	Nine Months Ended
	September 26, 2015			September 27, 2014
Risk free interest rate	1.68		%	1.80		%
Expected life (years)	6			6
Expected volatility	30.8		%	34.1		%
Dividend yield	1.34		%	1.80		%
Option fair value	$	25.48		$	19.23

During the nine months ended September 26, 2015, option holders surrendered 587 shares of previously owned common stock as payment for option shares exercised as provided for by the Option Plans. All unexercised options at September 26, 2015 have an exercise price equal to the fair market value on the date of the grant.

Compensation expense of $1,255,100 and $1,037,200 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first nine months of 2015 and 2014, respectively. As of September 26, 2015, the Company had $3.6 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 2.3 years.

A reconciliation of common shares outstanding and total equity (deficit) from December 27, 2014 to September 26, 2015 is as follows:

	Common Shares		Total Equity (Deficit)
BALANCE, December 27, 2014	4,998,512		$	21,609,500
Repurchase of common stock	(875,000	)	(74,261,500		)
Stock options exercised and related tax benefits	4,519		175,600
Compensation expense relating to stock options	—		1,255,100
Cash dividends	—		(939,200		)
Comprehensive income	—		16,148,700

BALANCE, September 26, 2015	4,128,031		$	(36,011,800	)