Note 6 - Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
N
ote
6 – S
tock-based Compensation
The Company has two incentive stock plans, the 2006 Omnibus Incentive Plan (the “2006 Plan”) and the 2014 Omnibus Equity Compensation Plan (the “2014 Plan”). As a result of the approval of the 2014 Plan by the Company’s stockholders at the Company’s 2014 annual meeting, grants may
no longer be issued under the 2006 Plan. The Company believes that awards of long-term, equity-based incentive compensation will attract and retain directors, officers and employees of the Company and will encourage these individuals to contribute to the successful performance of the Company, which will lead to the achievement of the Company’s overall goal of increasing stockholder value. Awards granted under the 2014 Plan may be in the form of incentive stock options, non-qualified stock options, shares of restricted or unrestricted stock, stock units, stock appreciation rights or other stock-based awards. Awards may be granted subject to the achievement of performance goals or other conditions, and certain awards may be payable in stock or cash, or a combination of the two.The 2014 Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Board”), which selects eligible employees, non-employee directors and other individuals to participate in the 2014 Plan and determines the type, amount, duration (not to exceed ten (10 ) years for grants of options) and other terms of individual awards. Grants under the 2014 Plan are settled primarily through the issuance of new shares of the Company’s common stock, 581,000 shares of which were available for future issuance under the 2014 Plan as of December 30, 2018.
Stock-based compensation expense is calculated according to FASB ASC Topic 718, Compensation – Stock Compensation , which requires stock-based compensation expense to be accounted for using a fair-value-based measurement. The Company recorded stock-based compensation expense of $84,000 and $129,000 during the three -month periods ended December 30, 2018 and December 31, 2017, respectively, and $281,000 and $406,000 during the nine -month periods ended December 30, 2018 and December 31, 2017, respectively. The Company records compensation expense related to stock-based awards granted to individuals in the same classifications in the accompanying unaudited condensed consolidated statements of income as the cash compensation paid to those same individuals. No stock-based compensation costs have been capitalized as part of the cost of an asset as of December 30, 2018.
Stock Options: The following table represents stock option activity for the nine -month periods ended December 30, 2018 and December 31, 2017:
As of December 30, 2018, the intrinsic value of the outstanding and exercisable stock options was each $4,000 .no nine -month periods ended December 30, 2018 or December 31, 2017.
To determine the estimated fair value of stock options granted, the Company uses the Black-Scholes-Merton valuation formula, which is a closed-form model that uses an equation to estimate fair value. The following table sets forth the assumptions used to determine the fair value of the non-qualified stock options that were awarded to certain employees during the nine -month periods ended December 30, 2018 and December 31, 2017, which options vest over a two
For the three -month periods ended December 30, 2018 and December 31, 2017, the Company recorded compensation expense associated with stock options as follows (in thousands):
For the nine -month periods ended December 30, 2018 and December 31, 2017, the Company recorded compensation expense associated with stock options as follows (in thousands):
As of December 30, 2018, total unrecognized stock option compensation expense amounted to $63,000, which will be recognized as the underlying stock options vest over a weighted-average period of 9.3 months. The amount of future stock option compensation expense could be affected by any future stock option grants and by the separation from the Company of any individual who has received stock options that are unvested as of such individual’s separation date.Non-vested Stock
Granted to
None
mployee Directors: The Board granted the following shares of non-vested stock to the Company’s nonemployee directors:
These shares vest over a two -year period, assuming continued service. The fair value of the non-vested stock granted to the Company’s nonemployee directors was based on the closing price of the Company’s common stock on the date of each grant. In each of August 2018 and 2017, 28,000 $151,000 and $157,000, respectively.Performance Bonus Plan: The Company maintains a performance bonus plan for certain executive officers that provides for awards of shares of common stock in the event that the aggregate average market value of the common stock during the relevant fiscal year, plus the amount of cash dividends paid in respect of the common stock during such period, increases. These individuals may instead be awarded cash, if and to the extent that insufficient shares of common stock are available for issuance from all shareholder-approved, equity-based plans or programs of the Company in effect. The performance bonus plan also imposes individual limits on awards and provides that shares of common stock that may be awarded will vest over a two -year period. Compensation expense associated with performance bonus plan awards are recognized over a three -year period – the fiscal year in which the award is earned, plus the two -year vesting period.In connection with the performance bonus plan, the Company granted shares of common stock and recognized or will recognize compensation expense as set forth below:
The table below sets forth the vesting of shares issued in connection with the grants of shares set forth in the above table. Each of the individuals holding shares that vested surrendered to the Company the number of shares necessary to satisfy the income tax withholding obligations that arose from the vesting of the shares. The table below also sets forth the taxes remitted to the appropriate taxing authorities on behalf of such individuals.
For the three and nine -month periods ended December 30, 2018 and December 31, 2017, the Company recorded compensation expense associated with stock grants, which is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income, as follows (in thousands):
As of
December 30, 2018, total unrecognized compensation expense related to the Company’s non-vested stock grants amounted to $194,000, which will be recognized over the respective vesting terms associated with each block of non-vested stock indicated above, such grants having an aggregate weighted-average vesting term of 8.0 months. The amount of future compensation expense related to the Company’s non-vested stock grants could be affected by any future non-vested stock grants and by the separation from the Company of any individual who has non-vested stock grants as of such individual’s separation date. |