Summary Of Significant Interim Accounting Policies:

9 Months Ended

Sep. 30, 2011

Summary Of Significant Interim Accounting Policies: [Abstract]

Summary Of Significant Interim Accounting Policies:

NOTE 1 – Summary of Significant Interim Accounting Policies:

a) Basis of presentation

The consolidated interim financial statements include the accounts of Superior Uniform Group, Inc. and its wholly owned subsidiaries, Fashion Seal Corporation, Superior Office Solutions, The Office Gurus, LLC, and their jointly owned subsidiaries, The Office Gurus, Ltda, De C.V. and The Office Masters. They also include The Office Gurus, Ltda and Scratt Kit S.R.L., wholly owned subsidiaries of Superior Office Solutions collectively "the Company." Intercompany items have been eliminated in consolidation. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010, and filed with the Securities and Exchange Commission. The interim financial information contained herein is not certified or audited; it reflects all adjustments (consisting of only normal recurring accruals) which are, in the opinion of management, necessary for a fair statement of the operating results for the periods presented, stated on a basis consistent with that of the audited financial statements. The unaudited financial information included in this report as of and for the three and nine months ended September 30, 2011 has been reviewed by Grant Thornton LLP, independent registered public accounting firm, and their review report thereon accompanies this filing. Such review was made in accordance with established professional standards and procedures for such a review. The results of operations for any interim period are not necessarily indicative of results to be expected for the full year.

b) Revenue recognition

The Company records revenue as products are shipped and title passes. A provision for estimated returns and allowances is recorded based on historical experience and current allowance programs.

c) Recognition of costs and expenses

Costs and expenses other than product costs are charged to income in interim periods as incurred, or allocated among interim periods based on an estimate of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period are consistent with the basis followed by the registrant in reporting results of operations at annual reporting dates. However, when a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item is allocated to the interim periods.

d) Amortization of other intangible assets

The Company amortizes identifiable intangible assets on a straight line basis over their expected useful lives. Amortization expense for other intangible assets was $241,000 and $96,000 for the three-month periods ended September 30, 2011 and 2010, respectively, and $782,000 and $288,000 for the nine-month periods ended September 30, 2011 and 2010, respectively.

e) Advertising expenses

The Company expenses advertising costs as incurred. Advertising costs for the three-month periods ended September 30, 2011 and 2010, respectively were $12,000 and $14,000. Advertising costs for the nine-month periods ended September 30, 2011 and 2010, respectively were $71,000 and $46,000.

f) Shipping and handling fees and costs

The Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound and out-bound freight are generally recorded in cost of goods sold. Other shipping and handling costs such as labor and overhead are included in selling and administrative expenses and totaled $1,586,000 and $1,537,000 for the three months ended September 30, 2011 and 2010, respectively. Other shipping and handling costs included in selling and administrative expenses totaled $4,425,000 and $4,652,000 for the nine months ended September 30, 2011 and 2010, respectively.

g) Inventories

Inventories at interim dates are determined by using both perpetual records on a first-in, first-out basis and gross profit calculations.

h) Accounting for income taxes

The provision for income taxes is calculated by using the effective tax rate anticipated for the full year.

i) Employee benefit plan settlements

The Company recognizes settlement gains and losses in its financial statements when the cost of all settlements in a year is greater than the sum of the service cost and interest cost components of net periodic pension cost for the plan for the year.

j) Earnings per share

Historical basic per share data is based on the weighted average number of shares outstanding. Historical diluted per share data is reconciled by adding to weighted average shares outstanding the dilutive impact of the exercise of outstanding stock options and stock appreciation rights.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Net earnings used in the computation of basic and diluted earnings per share	$	1,879,211	$	1,372,088	$	3,410,532	$	2,863,475
Weighted average shares outstanding - basic		5,986,676		5,900,595		5,986,884		5,903,457
Common stock equivalents		92,754		53,983		93,956		53,952
Weighted average shares outstanding - diluted		6,079,430		5,954,578		6,080,840		5,957,409
Per Share Data :
Basic
Net earnings	$	0.31	$	0.23	$	0.57	$	0.49
Diluted
Net earnings	$	0.31	$	0.23	$	0.56	$	0.48

Awards to purchase 279,125 and 401,125 shares of common stock with weighted average exercise prices of $12.57 and $12.18 per share were outstanding during the three-month periods ending September 30, 2011 and 2010, respectively, but were not included in the computation of diluted EPS because the awards' exercise prices were greater than the average market price of the common shares.

Awards to purchase 445,625 and 539,175 shares of common stock with weighted average exercise prices of $12.09 and $11.75 per share were outstanding during the nine-month periods ending September 30, 2011 and 2010, respectively, but were not included in the computation of diluted EPS because the awards' exercise prices were greater than the average market price of the common shares.

k) Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

l) Comprehensive income

Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net earnings. For the Company, the only other component of total comprehensive income is the change in pension costs.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Net earnings	$	1,879,211	$	1,372,088	$	3,410,532	$	2,863,475
Other comprehensive income:
Pensions - reclassification to net earnings during the period		83,135		74,930		249,405		224,791
	$	1,962,346	$	1,447,018	$	3,659,937	$	3,088,266

m) Operating Segments

Accounting standards require disclosures of certain information about operating segments and about products and services, geographic areas in which the Company operates, and their major customers. The Company has determined that currently it operates in one segment, as defined in the standards.

n) Share-Based Compensation

The Company awards share-based compensation as an incentive for employees to contribute to the Company's long-term success. Historically, the Company has issued options and stock settled stock appreciation rights. At September 30, 2011, the Company had 1,417,250 shares of common stock authorized for awards of share-based compensation under its 2003 Incentive Stock and Awards Plan.

For the three months ended September 30, 2011 and 2010, respectively, the Company recognized $181,000 and $123,000 of share-based compensation, recorded in selling and administrative expense in the Consolidated Statements of Earnings. For the nine months ended September 30, 2011 and 2010, respectively, the Company recognized $1,005,000 and $532,000 of share-based compensation, recorded in selling and administrative expense in the Consolidated Statements of Earnings. This expense was offset by a $145,000 and a $38,000 deferred tax benefit for non-qualified share-based compensation for the nine-month periods ended September 30, 2011 and 2010, respectively. As of September 30, 2011, the Company had no unrecognized compensation cost expected to be recognized for prior share-based awards.

The Company grants stock options and stock settled stock appreciation rights ("SARS") to employees that allow them to purchase shares of the Company's common stock. Options are also granted to outside members of the Board of Directors of the Company. The Company determines the fair value of stock options and SARS at the date of grant using the Black-Scholes valuation model.

All options and SARS vest immediately at the date of grant. Awards generally expire five years after the date of grant with the exception of options granted to outside directors, which expire ten years after the date of grant. The Company issues new shares upon the exercise of stock options and SARS.

During the three-month periods ended September 30, 2011 and 2010, respectively, the Company received $209,000 and $136,000 in cash from stock option exercises. During the nine-month periods ended September 30, 2011 and 2010, respectively, the Company received $713,000 and $246,000 in cash from stock option exercises. No tax benefit was recognized for these exercises, as the options exercised were qualified incentive stock options. Additionally, during the nine months ended September 30, 2011, the Company received 8,491 shares of its common stock as payment for the issuance of 10,900 shares of its common stock related to the exercise of stock option agreements.

A summary of options transactions during the nine months ended September 30, 2011 follows:

	No. of Shares			Weighted Average Exercise  Price
Outstanding December 31, 2010		699,790		$	10.29
Granted		211,631			11.43
Exercised		(90,256	)		9.00
Lapsed		(93,025	)		11.65
Cancelled		(26,600	)		10.81
Outstanding September 30, 2011		701,540		$	10.59

At September 30, 2011, options outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $662,386.

Options exercised during the three and nine-month periods ended September 30, 2011 had intrinsic values of $62,972 and $175,567, respectively. Options exercised during the three and nine-month periods ended September 30, 2010 had intrinsic values of $22,924 and $42,031, respectively. The weighted average grant date fair value of the Company's options granted during the three-month periods ended September 30, 2011 and 2010 was $3.11 and $2.23, respectively. The weighted average grant date fair value of the Company's options granted during the nine month periods ended September 30, 2011 and 2010 was $2.74 and $2.25, respectively.

A summary of SARS transactions during the nine months ended September 30, 2011 follows:

	No. of Shares			Weighted Average Exercise Price
Outstanding December 31, 2010		207,380		$	11.30
Granted		127,144			11.24
Exercised		(2,100	)		9.16
Lapsed		(75,000	)		11.20
Cancelled		0			0
Outstanding September 30, 2011		257,424		$	11.32

At September 30, 2011, SARS outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $84,260.

SARS exercised during the nine-month period ended September 30, 2011 had an intrinsic value of $4,893. There were no SARS exercised during the nine-month period ended September 30, 2010. There were 127,144 and 35,980 SARS granted during the nine-month periods ended September 30, 2011 and 2010, respectively. The weighted average grant date fair value of the Company's SARS granted during the nine-month periods ended September 30, 2011 and 2010 was $2.96 and $2.29, respectively.

The following table summarizes significant assumptions utilized to determine the fair value of share-based compensation awards.

	Three Months Ended September 30,		Nine Months Ended September 30,
	SARS	Options	SARS	Options
Exercise price
2011	N/A	$11.95	$11.24	$11.10 - $11.95
2010	N/A	$9.76	$9.80	$9.41 - $9.80
Market price
2011	N/A	$11.95	$11.24	$11.10 - $11.95
2010	N/A	$9.76	$9.80	$9.41 - $9.80
Risk free interest rate (1)
2011	N/A	1.2%	2.3%	1.2% - 3.2%
2010	N/A	1.5%	2.2%	1.5% - 3.6%
Expected award life (2)	N/A	5 years	5 years	5-10 years
Expected volatility (3)
2011	N/A	43.9%	43.5%	35.5% - 43.9%
2010	N/A	42.1%	41.7%	35.3% - 42.1%
Expected dividend yield (4)
2011	N/A	4.5%	4.8%	4.5% - 4.9%
2010	N/A	5.5%	5.5%	5.5% - 5.7%

(1) The risk-free interest rate is based on the yield of a U.S. treasury bond with a similar maturity as the expected life of the awards.

(2) The expected life in years for awards granted was based on the historical exercise patterns experienced by the Company when the award is made.

(3) The determination of expected stock price volatility for awards granted in each of the three and nine-month periods ending September 30, was based on historical Superior common stock prices over a period commensurate with the expected life.

(4) The dividend yield assumption is based on the history and expectation of the Company's dividend payouts.