STOCK-BASED COMPENSATION

12 Months Ended

Dec. 29, 2012

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

(10) STOCK-BASED COMPENSATION

        The Company maintains stock-based compensation plans approved by the shareholders, which provide that the Compensation Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, non-vested stock awards and bonuses of common stock. At December 29, 2012, 472,567 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. The Company's policy is to issue shares upon exercise of stock options from treasury shares held by the Company.

        Under the stock option plans, the exercise price of each option equals the market price at the time of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the fifth anniversary of the grant. Expiration of grants is from six to ten years from the date of grant. The Company recorded $4,934, $5,623 and $4,994 of compensation expense (included in selling, general and administrative expenses) in the 2012, 2011 and 2010 fiscal years, respectively. The associated tax benefits recorded in the 2012, 2011 and 2010 fiscal years was $1,875, $2,137 and $1,879, respectively.

        At December 29, 2012, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.28 years, was approximately $10,208.

        The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2012, 2011 and 2010 was estimated using the following assumptions:

	2012			2011			2010
Expected volatility		33.76	%		32.50	%		31.80	%
Risk-free interest rate		0.74	%		0.88	%		1.62	%
Expected life from vesting date		3.0 yrs			3.0 yrs			3.0 yrs
Dividend yield		0.77	%		0.82	%		0.81	%

        Following is a summary of the activity of the stock plans during 2010, 2011 and 2012:

	Number of Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 26, 2009		1,126,311		$	59.06
Granted		229,703			85.12
Exercised		(109,711	)		(32.09	)
Forfeited		(23,409	)		(71.11	)
Outstanding at December 25, 2010		1,222,894		$	66.22			4.86	$	25,703
Options vested or expected to vest at December 25, 2010		1,187,408		$	65.84			4.81		25,401
Options exercisable at December 25, 2010		708,014		$	58.05			3.91		20,614

        The weighted average per share fair value of options granted during 2010 was $23.69.

	Number of Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 25, 2010		1,222,894		$	66.22
Granted		214,206			85.40
Exercised		(306,218	)		(61.57	)
Forfeited		(52,169	)		(76.12	)
Outstanding at December 31, 2011		1,078,713		$	70.88			4.68	$	22,382
Options vested or expected to vest at December 31, 2011		1,048,182		$	70.52			4.63		22,113
Options exercisable at December 31, 2011		618,844		$	61.57			3.56		18,441

        The weighted average per share fair value of options granted during 2011 was $23.32.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2011		1,078,713		$	70.88
Granted		140,007			136.01
Exercised		(341,090	)		61.53
Forfeited		(8,638	)		84.18
Outstanding at December 29, 2012		868,992		$	84.91		4.68	$	43,410
Options vested or expected to vest at December 29, 2012		845,470		$	84.26		4.64		42,765
Options exercisable at December 29, 2012		485,786		$	71.06		3.67		30,846

        The weighted average per share fair value of options granted during 2012 was $38.17.

        Following is a summary of the status of stock options outstanding at December 29, 2012:

Outstanding and Exercisable By Price Range
Options Outstanding						Options Exercisable
Exercise Price Range	Number		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number		Weighted Average Exercise Price
$19.75 - 40.21		62,090	1.74 years	$	23.84		59,890	$	23.23
53.01 - 80.83		233,290	3.18 years		69.00		213,924		70.06
82.81 - 136.42		573,612	5.61 years		97.97		211,972		85.58
		868,992					485,786

        In accordance with shareholder-approved plans, the Company grants stock under various stock-based compensation arrangements, including non-vested stock and stock issued in lieu of cash bonuses. Under such arrangements, stock is issued without direct cost to the employee. In addition, the Company grants restricted stock units. The restricted stock units are settled in Company stock when the restriction period ends. During fiscal 2012, 2011 and 2010, the Company granted non-vested stock and restricted stock units to directors and certain management employees as follows (which are included in the above stock plan activity tables):

	2012		2011		2010
Shares issued		27,293		47,417		29,076
Weighted-average per share price on grant date	$	132.21	$	88.26	$	80.91
Compensation expense	$	2,835	$	2,004	$	2,541

        At December 29, 2012 the amount of deferred stock-based compensation granted, to be recognized over a weighted-average period of 1.91 years, was approximately $5,899.