Note 6 - Stockholders' Equity

6 Months Ended

Jun. 24, 2012

Shareholders' Equity and Share-based Payments [Text Block]

(6) Stockholders’ Equity

(a) Stock Options

We have 5.4 million shares of common stock reserved for issuance under our Equity Incentive Plan (Plan) for our employees, officers, and directors. The option price for shares issued under the Plan is to be not less than the fair market value on the date of grant with respect to incentive and nonqualified stock options. Incentive stock options become exercisable in four equal installments from the date of the grant and have a contractual life of seven to ten years. Nonqualified stock options issued pursuant to the Plan have varying vesting periods from immediately to four years and have a contractual life of seven to ten years. Incentive stock options may be granted under this Plan until March 12, 2022. We issue new shares of common stock upon exercise of stock options. Option activity is summarized for the six months ended June 24, 2012 as follows:

	Number of shares			Weighted average exercise price		Average remaining contractual Life (years)		Aggregate intrinsic value
Outstanding, December 25, 2011		182,629		$	34.06		4.0	$	6,242

Granted		27,691			94.42
Exercised		(14,927	)		19.92
Cancelled		(1,764	)		35.08

Outstanding, June 24, 2012		193,629		$	43.77		4.0	$	7,918
Exercisable, June 24, 2012		112,284			29.70		3.1		5,989

The aggregate intrinsic value in the table above is before applicable income taxes, based on our closing stock price of $83.04 as of the last business day of the quarter ended June 24, 2012, which would have been received by the optionees had all options been exercised on that date. As of June 24, 2012, total unrecognized stock-based compensation expense related to nonvested stock options was approximately $1,730, which is expected to be recognized over a weighted average period of approximately 2.6 years. During the six-month periods ended June 24, 2012 and June 26, 2011, the total intrinsic value of stock options exercised was $982 and $1,161, respectively. During the six-month periods ended June 24, 2012 and June 26, 2011, the weighted average grant date fair value of options granted was $43.97 and $26.07. No shares vested during the six-month periods ended June 24, 2012 or June 26, 2011.

The Plan has 1,553,779 shares available for grant as of June 24, 2012.

(b) Restricted Stock Units

Restricted stock units are granted annually under the Plan at the discretion of the Board of Directors. Restricted stock units are subject to three-year cliff vesting and a cumulative three-year earnings target. The number of units which vest at the end of the three-year period is based on performance against the target. These restricted stock units are subject to forfeiture if they have not vested at the end of the three-year period. Stock-based compensation is recognized for the number of units expected to vest at the end of the period and is expensed over the three-year period.

For each grant, restricted stock units meeting the three-year performance criteria will vest as of the end of our fiscal year. The distribution of vested restricted stock units as common stock typically occurs in March of the following year. The common stock is issued to participants net of the number of shares needed for the required minimum employee withholding taxes. We issue new shares of common stock upon the disbursement of restricted stock units. Restricted stock units are contingently issuable shares, and the activity for the first six months of fiscal 2012 is as follows:

	Number of shares			Weighted average grant date fair value
Outstanding, December 25, 2011		360,280		$	45.95

Granted		136,744			93.28
Vested		(4,865	)		86.33
Cancelled		(14,083	)		50.81
Outstanding, June 24, 2012		478,076		$	58.93

As of June 24, 2012, the total stock-based compensation expense related to nonvested awards not yet recognized was $12,388, which is expected to be recognized over a weighted average period of 1.9 years. The weighted average grant date fair value of restricted stock units granted during the six-month periods ended June 24, 2012 and June 26, 2011 was $93.28 and $53.77, respectively. During the six-month periods ended June 24, 2012 and June 26, 2011, we recognized $3,260 and $5,369, respectively, of stock-based compensation expense related to restricted stock units.

We have reserved 600,000 shares of common stock for issuance under our Employee Stock Purchase Plan (ESPP). The ESPP is available to substantially all employees subject to employment eligibility requirements. Participants may purchase our common stock at 85% of the beginning or ending closing price, whichever is lower, for each six-month period ending in May and November. During the first six months of 2012 and 2011, we issued 14,505 and 16,292 shares of common stock, respectively, under the ESPP. As of June 24, 2012, we have 260,157 shares available for future issuance under the ESPP.