Note 9 - Shareholders' Equity

12 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

9

. 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 to employees and directors. As of

December 30, 2017,

there were

1.3

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

Stock options 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 3

0,

2017.

	Shares Under Option			Weighted Average Price		Weighted Average Remaining Contract Life (Years)		Aggregate Intrinsic Value (000 ’s)
Outstanding December 31, 2016		356,184		$	98.65
Granted		76,082			154.15
Exercised		(27,965	)		84.93
Forfeited		—		NA
Outstanding December 3 0, 2017		404,301			110.04		4.5	$	35,488
Exercisable December 3 0, 2017		203,745			92.36		3.6		21,486

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

December 3

0,

2017.

	Shares			Weighted Average Grant-Date Fair Value
Nonvested December 31, 2016		207,330		$	106.92
Granted		95,621			151.91
Vested		(95,520	)		102.49
Forfeited		(7,738	)		111.56
Nonvested December 3 0, 2017		199,693			130.40

The total intrinsic value of options exercised during

201

7,

2016,

and

2015

was

$2.2

million,

$13.3

million, and

$5.0

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

$15.0

million,

$10.7

million, and

$8.1

million for

2017,

2016,

and

2015,

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

$0.9

million,

$0.6

million and

$0.4

million for

2017,

2016,

and

2015,

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 30, 2017,

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

$15.9

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

$17.3

million,

$12.8

million, and

$10.7

million for

2017,

2016,

and

2015

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

$6.0

million,

$4.4

million and

$3.7

million for

2017,

2016,

and

2015

, 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:

	2017		201 6		201 5
Weighted average fair value of options granted		$30.77		$26.06		$21.99
Assumptions:
Risk-free interest rate		1.79%		1.37%		1.25%
Expected dividend yield		0.86%		0.97%		1.04%
Expected stock price volatility		23.0%		26.0%		28.0%
Expected life of options (years)		4.4		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

2017,

2016,

and

2015:

(in thousands )	Pension and postretirement liability and reclassification adjustments (a)			Gain (Loss) on investments			Foreign currency translation adjustment s			Accumulated other comprehensive income (loss)
Balance at December 27, 2014	$	(29,615	)	$	10,791		$	(2,302	)	$	(21,126	)
201 5 activity		20,893			793			(46,231	)		(24,545	)
Balance at January 2, 2016		(8,722	)		11,584			(48,533	)		(45,671	)
201 6 activity		(3,261	)		(815	)		(24,832	)		(28,908	)
Balance at December 31, 2016		(11,983	)		10,769			(73,365	)		(74,579	)
2017 activity		1,147			(974	)		10,738			10,911
Balance at December 30, 2017	$	(10,836	)	$	9,795		$	(62,627	)	$	(63,668	)

(a) Net of tax of $

1.4

 million,

$1.1

million, and

$0.7

 million 

at

December 30, 2017;

December 31, 2016;

and

January 2, 2016,

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, 2017

to

April 30, 2018.

The Company did

not

repurchase any shares of its common stock during fiscal

2017

under the stock repurchase program.