INCENTIVE COMPENSATION

12 Months Ended

Dec. 30, 2012

Incentive Compensation Plans [Abstract]

Disclosure Of Compensation Related Costs, Share-Based Payments [Text Block]

18.INCENTIVE COMPENSATION

Incentive Compensation Plans

The Company sponsors an annual incentive program that provides the grant of bonus awards payable upon achievement of specified performance goals (the “STIP”). Full-time, salaried exempt employees of the Company and its affiliates who are selected by the administering committee are eligible to participate in the STIP. The Company has accrued $7.2 million in costs related to the STIP at December 30, 2012.

The Company also sponsors a performance-based, omnibus long-term incentive plan that provides for the grant of a broad range of long-term equity-based and cash-based awards to the Company’s officers and other employees, members of the Board and any consultants (the “LTIP”). The equity-based awards that may be granted under the LTIP include “incentive stock options,” within the meaning of the Internal Revenue Code, nonqualified stock options, stock appreciation rights, restricted stock awards and restricted stock units. We have reserved approximately 6.6 million shares of common stock for future issuance under the LTIP. The restricted stock awarded to Fabio Sandri on August 27, 2012 was granted under this plan. No other awards have been granted under the LTIP as of the date of this annual report.

Share-Based Compensation

The Company granted 200,000 restricted shares of its common stock to William W. Lovette effective January 14, 2011 in connection with the employment agreement with Mr. Lovette. Restrictions on the first tranche of 100,000 shares of this common stock lapsed on January 3, 2013 and restrictions on the second tranche of 100,000 shares of this common stock will lapse on January 3, 2014, subject to Mr. Lovette’s continued employment with the Company through the applicable lapse date. The $1.4 million fair value of the shares as of the grant date was determined by multiplying the number of shares granted by the closing market price of the Company’s common stock on the grant date. The Company recognized compensation expense of $0.7 million on the first tranche of these restricted shares ratably from January 14, 2011 to January 3, 2013. Assuming no forfeiture of shares, the Company will recognize compensation expense of $0.7 million on the second tranche of these restricted shares ratably from January 14, 2011 to January 3, 2014.

The Company granted 72,675 restricted shares of its common stock to Mr. Sandri effective August 27, 2012 as compensation for services to be rendered. Restrictions on these shares will lapse on April 27, 2014, subject to Mr. Sandri’s continued employment with the Company through the applicable vesting date. The $0.4 million fair value of the shares as of the grant date was determined by multiplying the number of shares granted by the average market price of the Company’s common stock on the grant date. Assuming no forfeiture of shares, the Company will recognize compensation expense of $0.4 million ratably from August 27, 2012 to April 27, 2014.

Compensation cost charged as selling, general and administrative expense, the income tax benefit recognized for our share-based compensation arrangements and the weighted average fair value of the restricted shares of common stock granted is included below:

	2012		2011		2010
	(In thousands, except weighted average fair values)
Total share-based compensation cost	$	684	$	568	$	—
Income tax benefit		28		—		—
Weighted average fair value of restricted shares of
common stock granted		5.00		7.10		—

The Company’s restricted share activity is included below:

	2012			2011
		Weighted Average			Weighted Average
		Grant Date			Grant Date Fair
	Number	Fair Value		Number	Value
	(In thousands, except weighted average fair values)
Outstanding at beginning of year	200	$	7.10	—	$	—
Shares granted	73		5.00	200		7.10
Outstanding at end of year	273	$	6.53	200	$	7.10

At December 30, 2012, the total unrecognized compensation cost related to all nonvested awards was $532,000. That cost is expected to be recognized over a weighted average period of 1.18 years.

Historically, we have issued new shares to satisfy award conversions.