Stock Compensation Plans

12 Months Ended

Dec. 29, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 10 — Stock Compensation Plans

In April 2007, Shareholders approved the Escalade, Incorporated 2007 Incentive Plan (“2007 Incentive Plan”), which is an incentive plan for key employees, directors and consultants with various equity-based incentives as described in the plan document. The 2007 Incentive Plan is a replacement for the 1997 Incentive Stock Option Plan and the 1997 Director Stock Compensation and Option Plan which expired at the end of April 2007. All options issued and outstanding under the expired plans will remain in effect until exercised, expired or forfeited.

The 2007 Incentive Plan is administered by the Board of Directors or a committee thereof, which is authorized to determine, among other things, the key employees, directors or consultants who will receive awards under the plan, the amount and type of award, exercise prices or performance criteria, if applicable, and vesting schedules. Under the original terms of the plan and subject to various restrictions contained in the plan document, the total number of shares of common stock which may be issued pursuant to awards under the Plan may not exceed 1,481,491 shares. In 2012, the stockholders approved an amendment to the Escalade, Incorporated 2007 Incentive Plan to provide an additional 1,500,000 shares of common stock. Bank approval of this amendment was obtained as part of the Eighth Amendment to the Credit Agreement.

Restricted Stock Units

In 2009, 2008, and 2007, the Company granted restricted stock units to certain officers and directors of the Company at fair market value on the date of grant. The restricted stock units granted to employees of the Company vest over three to four years and are dependent on certain market criteria. The restricted stock units granted to directors vest immediately or within two years. All restricted stock units are payable in shares of the Company’s common stock upon vesting, subject to the deferral election arrangement, and are subject to forfeiture if on the vesting date the employee is not employed or the director no longer holds a position with the Company.

The Company issued no restricted stock units to employees or directors in 2010, 2011 and 2012. The following table presents a summary of non-vested restricted stock units granted to directors as of December 29, 2012:

	Number of Shares
Vested but unsettled		50,397
Outstanding restricted stock units as of December 29, 2012		50,397

When vesting is dependent on certain market criteria, the fair value of restricted stock units is determined by the use of Monte Carlo techniques. The market price of the Company’s stock on the grant date is used to value restricted stock units where vesting is not contingent on market criteria. In 2012, 2011, and 2010 the Company recognized $0, $35 thousand, and $(47) thousand respectively in compensation expense related to restricted stock units and as of December 29, 2012 and December 31, 2011, there was $0 and $0 respectively, of unrecognized compensation expense related to restricted stock units.

Stock Options

Total compensation expense recorded in the statements of operations for 2012, 2011 and 2010 relating to stock options was $574 thousand, $513 thousand and $224 thousand, respectively. As of December 29, 2012, there were $1.0 million of total unrecognized compensation costs related to stock options. These costs are expected to be recognized over a weighted average period of 2.5 years.

At the March 1, 2012 meeting of the Board of Directors, the Board voted to approve director stock options of 37,500, and employee incentive stock options of 200,000. The director and employee options have a one year vesting and four year-tiered vesting, respectively, and all options expire in five years. The 2012 employee awards were conditioned upon stockholder approval of the amendment to the Escalade, Incorporated 2007 Incentive Plan, which was obtained at the April 2012 Shareholder Meeting, and bank approval, which was obtained with the Eighth Amendment to the credit agreement.

The following table summarizes option activity for each of the three years ended 2012:

	Incentive Stock Options				Director Stock Options
	Granted		Outstanding		Granted		Outstanding
2012		200,000		607,875		37,500		85,000
2011		200,000		915,625		37,500		69,024
2010		299,000		877,500		30,000		51,524

The fair value of each option grant award is estimated on the grant date using the Black-Scholes-Merton option valuation model using the following assumptions:

	2012	2011	2010
Risk-free interest rates	0.84%	1.51%	1.36%
Dividend yields	5.50%	1.84%	0%
Volatility factors of expected market price of common stock	95.56% to 110.39%	109.71% to 122.17%	97.64% to 116.63%
Weighted average expected life of the options	1-4 years	1-4 years	1-4 years

The following table summarizes stock option transactions for the three years ended 2012:

	2012				2011				2010
				Option				Option				Option
	Shares			Price	Shares			Price	Shares			Price
Outstanding at beginning of year		984,649		$0.64 to $9.35		929,024		$0.64 to $11.26		842,600		$0.64 to $13.40
Issued during year		237,500		$5.28 to $5.66		237,500		$6.07		329,000		$2.56
Canceled or expired		(25,024	)			(125,625	)			(167,576	)
Exercised during year		(504,250	)	$0.64 to $2.56		(56,250	)	$0.64 to $2.56		(75,000	)	$0.64 to $0.89
Outstanding at end of year		692,875		$0.64 to $6.07		984,649		$0.64 to $9.35		929,024		$0.64 to $11.26
Exercisable at end of year		192,625				69,399				87,524
Weighted-average fair value of options granted during the year	$	3.12			$	4.03			$	1.80

The total intrinsic value of options exercised was $2.4 million, $185 thousand, and $267 thousand for 2012, 2011 and 2010, respectively.

The following table summarizes information about stock options outstanding at December 29, 2012:

	Options Outstanding					Options Exercisable
			Weighted-Average
Range of	Number of		Remaining	Weighted-Average		Number of		Weighted-Average
Exercise Prices	Shares		Contractual Life	Exercise Price		Shares		Exercise Price
$ 0.64		33,000	1.3 years	$	0.64		33,000	$	0.64
$ 2.56		208,875	2.2 years	$	2.56		76,625	$	2.56
$5.28 - $5.66		231,500	4.2 years	$	5.29		—		—
$ 6.07		219,500	3.2 years	$	6.07		83,000	$	6.07
		692,875					192,625

During the year ended December 29, 2012, the following activity occurred under the Company’s stock option plan:

	Number of Options			Weighted Average Grant- Date Fair Value
Nonvested balance, beginning of year		915,250		$	1.63
Granted		237,500		$	3.12
Vested		(634,000	)	$	1.04
Forfeited		(18,500	)	$	3.55
Nonvested balance, end of year		500,250		$	3.02