Stock-based Compensation

9 Months Ended

Apr. 01, 2012

Stock-based Compensation [Abstract]

Stock-based Compensation

Stock-based Compensation

We maintain an omnibus stock incentive plan. This plan provides for the granting of stock options, shares of restricted stock and stock appreciation rights. The Board of Directors has designated 1,700,000 shares of common stock available for the grant of awards under the plan. Remaining shares available to be granted under the plan as of April 1, 2012 were 170,743. Awards that expire or are canceled without delivery of shares become available for re-issuance under the plan. We issue new shares of common stock to satisfy stock option exercises.

Nonqualified and incentive stock options and shares of restricted stock have been granted to our officers, outside directors and specified employees under our stock incentive plan. Stock options granted under the plan may not be issued with an exercise price less than the fair market value of the common stock on the date the option is granted. Stock options become exercisable as determined at the date of grant by the Compensation Committee of the Board of Directors. The options expire 5 to 10 years after the grant date unless an earlier expiration date is set at the time of grant. The options vest 1 to 4 years after the date of grant. Shares of restricted stock granted under the plan are subject to vesting criteria determined by the Compensation Committee of the Board of Directors at the time the shares are granted and have a minimum vesting period of three years from the date of grant. Restricted shares granted have voting and dividend rights, regardless if the shares are vested or unvested. The restricted stock grants issued to date vest 3 years after the date of grant.

The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight line basis over the vesting period for the entire award. The fair value of each restricted stock grant was based on the market price of the underlying common stock as of the date of grant. The resulting compensation cost is amortized on a straight line basis over the vesting period.

A summary of stock option activity under our stock incentive plan for the nine months ended April 1, 2012 is as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding, July 3, 2011		297,400		$	28.32
Granted		40,000		$	26.53
Exercised		(2,600	)	$	10.92
Expired		(2,000	)	$	37.58
Forfeited		—			—
Outstanding, April 1, 2012		332,800		$	28.19		5.6	$	1,465
Exercisable, April 1, 2012		192,700		$	33.69		4.7	$	949

The intrinsic value of stock options exercised and the fair value of stock options vesting during the three and nine month periods presented is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	April 1, 2012		March 27, 2011		April 1, 2012		March 27, 2011
Intrinsic Value of Options Exercised	$	—	$	—	$	25	$	—
Fair Value of Stock Options Vesting	$	71	$	125	$	268	$	293

The grant date fair value and assumptions used to determine compensation expense for the options granted during each period presented were as follows:

	Nine Months Ended
	April 1, 2012			March 27, 2011
Weighted Average Grant Date Fair Value:
Options Issued at Grant Date Market Value		n/a			n/a
Options Issued Above Grant Date Market Value	$	10.29		$	7.48
Assumptions:
Risk Free Interest Rate		1.23	%		1.08	%
Expected Volatility		59.88	%		59.89	%
Expected Dividend Yield		1.74	%		1.54	%
Expected Term (in years)		6.0			4.0

A summary of restricted stock activity under our omnibus stock incentive plan for the nine months ended April 1, 2012 is as follows:

	Shares			Weighted Average Grant Date Fair Value
Nonvested Balance, July 3, 2011		38,900		$	21.19
Granted		20,000		$	23.01
Vested		(9,300	)	$	29.00
Forfeited		(200	)	$	23.01
Nonvested Balance, April 1, 2012		49,400		$	20.45

As of April 1, 2012, there was $817,000 of total unrecognized compensation cost related to stock options granted under our omnibus stock incentive plan. This cost is expected to be recognized over a weighted average period of 11 months. As of April 1, 2012, there was approximately $547,000 of total unrecognized compensation cost related to restricted stock grants under the plan. This cost is expected to be recognized over a weighted average period of 1 year. Total unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures of awards granted under the plan.