Note 11 - Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

11.

Shareholders’ Equity

Equity Plans

: The company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, performance shares and other stock rights of employees and directors. As of

December

31,

2016,

there were

0.4

million shares available for issuance of future awards under the company’s equity-based compensation plans.

Stock options granted prior to

2002

vested over a

five

-year period and are exercisable over a

ten

-year period commencing from the date of vesting. The stock options granted in

2002

through

February

2005

vested over a

five

-year period and are exercisable over a

ten

-year period commencing from the date of the grant. Stock options granted after

February

2005

vest over a

three,

four

or

five

-year period and are exercisable over either a

seven

or

ten

-year period commencing from the date of the grant. Restricted shares and share units granted by the company generally vest over

three

to

four

years.

The following table provides a reconciliation of outstanding stock options for the fiscal year ended

December

31,

2016.

	Shares Under Option			Weighted Average Price		Weighted Average Remaining Contract Life (Years)		Aggregate Intrinsic Value (000’s)
Outstanding January 2, 2016		470,904		$	80.53
Granted		123,435			120.15
Exercised		(229,319	)		73.42
Forfeited		(8,836	)		87.86
Outstanding December 31, 2016		356,184			98.65		5.0	$	18,920
Exercisable December 31, 2016		112,714			78.16		3.6		8,297

The following table provides a reconciliation of non-vested restricted share and share unit awards for the fiscal year ended

December

31,

2016.

	Shares			Weighted Average Grant-Date Fair Value
Nonvested January 2, 2016		194,461		$	89.32
Granted		115,121			117.79
Vested		(93,742	)		84.94
Forfeited		(8,543	)		93.85
Nonvested December 31, 2016		207,297			106.92

The total intrinsic value of options exercised during

2016,

2015,

and

2014

was

$13.3

million,

$5.0

million, and

$9.6

million, respectively. The total fair value of shares vested was

$10.7

million,

$8.1

million, and

$7.6

million for

2016,

2015,

and

2014,

respectively. The total amount of share-based liabilities paid was

$0.6

million,

$0.4

million and

$0.3

million for

2016,

2015,

and

2014,

respectively.

The company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At

December

31,

2016,

the unrecognized compensation cost for options, restricted shares and performance shares was

$17.0

million before tax, and will be recognized over a weighted-average period of

1.9

years. Compensation cost included as a component of selling, general, and administrative expense for all equity compensation plans discussed above was

$12.8

million,

$10.7

million, and

$9.4

million for

2016,

2015,

and

2014

, respectively. The total income tax benefit recognized in the Consolidated Statements of Net Income was

$4.4

million,

$3.7

million and

$3.3

million for

2016,

2015,

and

2014

, respectively.

The company uses the Black-Scholes option valuation model to determine the fair value of awards granted. The weighted average fair value of and related assumptions for options granted are as follows:

	2016			2015			2014
Weighted average fair value of options granted	$	26.06		$	21.99		$	26.25
Assumptions:
Risk-free interest rate		1.37	%		1.25	%		1.67	%
Expected dividend yield		0.97	%		1.04	%		0.93	%
Expected stock price volatility		26.0	%		28.0	%		33.0	%
Expected life of options (years)		4.6			4.6			4.6

Expected volatilities are based on the historical volatility of the company’s stock price. The expected life of options is based on historical data for options granted by the company. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption.

Accumulated Other Comprehensive Income (Loss) (

“

AOCI

”

)

:

The following table sets forth the changes in the components of AOCI by component for fiscal years

2016,

2015,

and

2014:

(in thousands)	Pension and postretirement liability and reclassification adjustments (a)			Gain on investments			Foreign currency translation adjustment			Accumulated other comprehensive income (loss)
Balance at December 27, 2014	$	(29,615	)	$	10,791		$	(2,302	)	$	(21,126	)
2015 activity		20,893			793			(46,231	)		(24,545	)
Balance at January 2, 2016		(8,722	)		11,584			(48,533	)		(45,671	)
2016 activity		(3,261	)		(815	)		(24,832	)		(28,908	)
Balance at December 31, 2016	$	(11,983	)	$	10,769		$	(73,365	)	$	(74,579	)

(a) Net of tax of

$1

.1

million,

$0.7

million

, and $

12.6

million for

2016,

2015,

and

2014,

respectively.

Preferred Stock

: The Board of Directors

may

authorize the issuance of preferred stock from time to time in

one

or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board

may

fix by resolution.

The company’s Board of Directors authorized the repurchase of up to

1,000,000

shares of the company’s common stock under a program for the period

May

1,

2016

to

April

30,

2017.

The company’s prior share repurchase authorization of

1,000,000

shares expired on

April

30,

2016

with

650,000

shares remaining in the program. The company did not repurchase any shares of its common stock during fiscal

2016

under the either stock repurchase program. The company repurchased

350,000

of its shares in fiscal

2015

under the prior share repurchase program.