8.Shareholders’ Equity (Deficit):

Dividends

On January 27, 2016, 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 February 10, 2016, which was paid on March 1, 2016.

On April 27, 2016, the Company’s Board of Directors approved the payment of a $0.10 per share quarterly cash dividend to shareholders of record at the close of business on May 11, 2016, which was paid on June 1, 2016.

Repurchase of Common Stock

In the first six months of 2016 the Company repurchased 17,194 shares of its common stock. Under the Board of Directors’ authorization, as of June 25, 2016, the Company has the ability to repurchase 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. 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 June 25, 2016 was as follows:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Intrinsic Value
Outstanding at December 26, 2015	668,740		$	53.73	6.41	$	25,582,300
Granted	34,300		98.25
Exercised	(2,187	)	68.69
Forfeited	(3,501	)	80.31

Outstanding at June 25, 2016	697,352		$	55.74	6.09	$	29,349,500

Exercisable at June 25, 2016	489,067		$	44.07	5.03	$	26,275,800

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

	Six Months Ended
	June 25, 2016			June 27, 2015
Risk free interest rate	1.52		%	1.68		%
Expected life (years)	6			6
Expected volatility	27.1		%	30.8		%
Dividend yield	1.38		%	1.34		%
Option fair value	$	23.78		$	25.48

All unexercised options at June 25, 2016 have an exercise price equal to the fair market value on the date of the grant.

Compensation expense of $882,200 and $820,400 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first six months of 2016 and 2015, respectively. As of June 25, 2016, the Company had $3.9 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.