NOTE

– SHAREHOLDERS’ EQUITY

The following tables depict the activity in the accounts which make up shareholders equity for the

three

months ended

March 31, 2019

and

April 1, 2018:

	SHARES			AMOUNT			ADDITIONAL PAID-IN CAPITAL			RETAINED EARNINGS			PENSION LIABILITY			FOREIGN CURRENCY TRANSLATION ADJUSTMENT			CASH FLOW HEDGE
	(In thousands)
Balance, at December 30, 2018		59,508		$	5,951		$	270,269		$	222,214		$	(43,610	)	$	(101,487	)	$	1,326
Net income		0			0			0			7,059			0			0			0
Stock issuances under employee plans		509			51			379			0			0			0			0
Other issuances of common stock		224			22			3,900			0			0			0			0
Unamortized stock compensation expense related to restricted stock awards		0			0			(3,922	)		0			0			0			0
Cash dividends paid		0			0			0			(3,900	)		0			0			0
Forfeitures and compensation expense related to stock awards		(225	)		(22	)		29			0			0			0			0
Share Repurchases		0			0			0			0			0			0			0
Pension liability adjustment		0			0			0			0			(91	)		0			0
Foreign currency translation adjustment		0			0			0			0			0			(5,203	)		0
Cash flow hedge unrealized loss		0			0			0			0			0			0			(3,306	)
Balance, at March 31, 2019		60,016		$	6,002		$	270,655		$	225,373		$	(43,701	)	$	(106,690	)	$	(1,980	)

	SHARES			AMOUNT			ADDITIONAL PAID-IN CAPITAL			RETAINED EARNINGS			PENSION LIABILITY			FOREIGN CURRENCY TRANSLATION ADJUSTMENT			CASH FLOW HEDGE
	(In thousands)
Balance, at December 31, 2017		59,806		$	5,981		$	271,271		$	187,433		$	(56,554	)	$	(78,943	)	$	904
Net income		0			0			0			15,084			0			0			0
Stock issuances under employee plans		175			17			102			0			0			0			0
Other issuances of common stock		187			19			4,769			0			0			0			0
Unamortized stock compensation expense related to restricted stock awards		0			0			(4,788	)		0			0			0			0
Cash dividends paid		0			0			0			(3,868	)		0			0			0
Forfeitures and compensation expense related to stock awards		(55	)		(6	)		3,185			0			0			0			0
Share Repurchases		(615	)		(61	)		(14,424	)		0			0			0			0
Pension liability adjustment		0			0			0			0			(2,216	)		0			0
Foreign currency translation adjustment		0			0			0			0			0			8,830			0
Cash flow hedge unrealized gain		0			0			0			0			0			0			1,632
Balance, at April 1, 2018		59,498		$	5,950		$	260,115		$	198,649		$	(58,770	)	$	(70,113	)	$	2,536

Repurchase of Common Stock

In the

second

quarter of

2017,

the Company adopted a new share repurchase program in which the Company is authorized to repurchase up to

$100

million of its outstanding shares of common stock. The program has

specific expiration date. As of the end of the

first

quarter of

2019,

approximately

$25.1

million of shares remained authorized for repurchase under the program.

During the

first

quarter of

2019,

the Company did

not

repurchase or retire any shares of common stock pursuant to this share repurchase program.

Stock Option

Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award.

All outstanding stock options vested prior to the end of

2013,

and therefore there was

stock option compensation expense in the

first

quarter of

2019

2018.

As of

March 31, 2019,

there were

27,500

stock options outstanding and exercisable, at an average exercise price of

$12.43

per share. There were

stock options granted in

2019

2018.

There were

10,000

stock options exercised and

5,000

stock options forfeited in the

first

quarter of

2019.

There were

10,000

stock options exercised in the

first

quarter of

2018

and

forfeitures in the

first

quarter of

2018.

The aggregate intrinsic value of the outstanding and exercisable stock options was

0.1

million as of

March 31, 2019.

Restricted Stock Awards

During the

three

months ended

March 31, 2019

and

April 1, 2018,

the Company granted restricted stock awards for

224,000

and

192,000

shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a

one

three

-year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was

$0.8

million and

$1.1

million for the

three

months ended

March 31, 2019,

and

April 1, 2018,

respectively. The Company estimates forfeitures for restricted stock and reduces compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate actual experience against the assumed forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of

March 31, 2019,

as well as activity during the

three

months then ended:

	Restricted Shares		Weighted Average Grant Date Fair Value
Outstanding at December 30, 2018		549,000	$	27.65
Granted		224,000		17.54
Vested		188,000		18.24
Forfeited or canceled		18,000		21.16
Outstanding at March 31, 2019		567,000	$	26.98

As of

March 31, 2019,

the unrecognized total compensation cost related to unvested restricted stock was

$6.9

million. That cost is expected to be recognized by the end of

2022.

Performance

Share Awards

During the

three

months ended

March 31, 2019

and

April 1, 2018,

the Company issued awards of performance shares to certain employees. These awards vest based on the achievement of certain performance-based goals over a performance period of

one

three

years, subject to the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company’s election. The number of shares that

may

be issued in settlement of the performance shares to the award recipients

may

be greater (up to

200%

) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards.

The following table summarizes the performance shares outstanding as of

March 31, 2019,

as well as the activity during the

three

months then ended:

	Shares		Weighted Average Grant Date Fair Value
Outstanding at December 30, 2018		759,500	$	20.17
Granted		344,500		17.54
Vested		470,500		18.84
Forfeited or canceled		34,500		20.59
Outstanding at March 31, 2019		599,000	$	19.67

Compensation expense related to the performance shares was

$2.0

million and

$1.8

million for the

three

months ended

March 31, 2019,

and

April 1, 2018,

respectively. Unrecognized compensation expense related to these performance shares was approximately

$7.6

million as of

March 31, 2019.

That cost is expected to be recognized by the end of

2022.

The tax benefits recognized with regard to restricted stock and performance shares were approximately

$0.6

million in the

first

quarter of

2019.