(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 27, 2014, 1,234,445 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 $4,461, $5,194 and $4,934 of compensation expense (included in selling, general and administrative expenses) in the 2014, 2013 and 2012 fiscal years, respectively. The associated tax benefits recorded in the 2014, 2013 and 2012 fiscal years was $1,695, $1,974 and $1,875, respectively.

At December 27, 2014, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.34 years, was approximately $10,961.

The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2014, 2013 and 2012 was estimated using the following assumptions:

	2014			2013			2012
Expected volatility		32.27	%		33.26	%		33.76	%
Risk-free interest rate		1.43	%		1.16	%		0.74	%
Expected life from vesting date		3.0 yrs			3.0 yrs			3.0 yrs
Dividend yield		0.75	%		0.72	%		0.77	%

Following is a summary of the activity of the stock plans during 2012, 2013 and 2014:

	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.

	Number of Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 29, 2012		868,992		$	84.91
Granted		155,254			144.86
Exercised		(216,105	)		(72.17	)
Forfeited		(12,920	)		(129.08	)

Outstanding at December 28, 2013		795,221		$	99.29			4.56	$	39,994


Options vested or expected to vest at December 28, 2013		775,237		$	98.41			4.51		39,678


Options exercisable at December 28, 2013		464,377		$	81.73			3.58		31,508

The weighted average per share fair value of options granted during 2013 was $37.88.

	Number of Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 28, 2013		795,221		$	99.29
Granted		177,717			132.94
Exercised		(194,627	)		(71.67	)
Forfeited		(9,716	)		(126.23	)

Outstanding at December 27, 2014		768,595		$	113.72			4.74	$	15,983


Options vested or expected to vest at December 27, 2014		746,974		$	113.06			4.69		15,981


Options exercisable at December 27, 2014		450,539		$	97.29			3.59		15,944

The weighted average per share fair value of options granted during 2014 was $33.94.

Following is a summary of the status of stock options outstanding at December 27, 2014:

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
$24.37 - 40.21		11,400	0.43 years	$	26.32		11,400	$	26.32
$57.46 - 105.44		297,279	2.95 years		80.75		297,094		80.75
$110.26 - 151.45		459,916	6.00 years		137.19		142,045		137.59

		768,595					450,539

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 2014, 2013 and 2012, the Company granted non-vested stock and restricted stock units to directors and certain management employees as follows (which are not included in the above stock plan activity tables):

	2014		2013		2012
Shares issued		35,885		47,271		27,293
Weighted-average per share price on grant date	$	136.91	$	146.72	$	132.21
Compensation expense	$	3,978	$	3,667	$	2,835

At December 27, 2014 the amount of deferred stock-based compensation granted, to be recognized over a weighted-average period of 1.76 years, was approximately $8,337.