| Rhode Island(State or other jurisdiction of incorporation or organization)     | 05-0126220(IRS Employer Identification No.) |
|--------------------------------------------------------------------------------|---------------------------------------------|
| One Albion Road, Lincoln, Rhode Island(Address of principal executive offices) | 02865(Zip Code)                             |
| Registrant's telephone number, including area code: (401) 333-1200        |
| Securities registered pursuant to Section 12(b) of the Act:                    |
| Title of each class                                                            | Name of each exchange on which registered:  |
| Class A Common Stock ($1 Par Value)                                            | NASDAQ                                      |
| Securities registered pursuant to Section 12(g) of the Act:  None    |

| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    | Yes |   | X | No |   |   |   |

| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                              | Yes |   | X | No |   |

| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| X                                                                                                                                                                                                                                                                                                                                                                             | Yes |   |   | No |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (S 232.405 of this chapter) during the preceding 12 months (or shorter period that the registrant was required to submit and post such files). |
|                                                                                                                                                                                                                                                                                                                                                                          | Yes |   |   | No |   |
|                                                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (S 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]         |
|                                                                                                                                                                                                                                                                                                                                                                          |

| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company in Rule 12b-2 of the Exchange Act. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                        | Large accelerated filer |   |   |   Accelerated filer |   |   |   |   |
|                                                                                                                                                                                        | Non-accelerated filer |   |   |   Smaller reporting company | X |   |   |   |

| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                     | Yes |   | X | No |   |
|                                                                                                                                                                                                                                     |
| The aggregate market value of the registrant's voting and non-voting common equity held by non-affiliates as of July 3, 2010, the last business day of the registrant's most recently completed second fiscal quarter was $33.0 million. |
|                                                                                                                                                                                                                                     |

| The number of shares outstanding of each of the registrant's classes of common stock as of February 28, 2011 was: |
|-------------------------------------------------------------------------------------------------------------------|
| Class A common stock     -                                                               |   | 10,975,342 |   | Shares |
| Class B common stock     -                                                               |   | 1,804,800 |   | Shares |
|                                                                                                              |

| DOCUMENTS INCORPORATED BY REFERENCE                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Portions of the definitive proxy statement for the 2011 annual meeting of shareholders are incorporated by reference into Part III of this report. |

----

|         | Part I                                                                                                                                | Page    |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------|---------|
|         |                                                                                                                                  |    |   |
| Item 1       | Business ---------------------------------------------------------------------------------------------------------------------------- | 1 - 4   |   |
|         |                                                                                                                                  |    |   |
| Item 1A      | Risk Factors ------------------------------------------------------------------------------------------------------------------------ | 4 - 5   |   |
|         |                                                                                                                                  |    |   |
| Item 1B      | Unresolved Staff Comments ---------------------------------------------------------------------------------------------------         | 6       |   |
|         |                                                                                                                                  |    |   |
| Item 2       | Properties -------------------------------------------------------------------------------------------------------------------------- | 6       |   |
|         |                                                                                                                                  |    |   |
| Item 3       | Legal Proceedings ---------------------------------------------------------------------------------------------------------------     | 6       |   |
|         |                                                                                                                                  |    |   |
|         | Part II                                                                                                                               |    |   |
|         |                                                                                                                                  |    |   |
| Item 5       | Market For Registrant's Common Equity, Related Stockholder Matters                                                                    |    |   |
|         | and Issuer Purchases of Equity Securities --------------------------------------------------------------------------------            | 7 - 8   |   |
|         |                                                                                                                                  |    |   |
| Item 6       | Selected Financial Data --------------------------------------------------------------------------------------------------------      | 8       |   |
|         |                                                                                                                                  |    |   |
| Item 7       | Management's Discussion and Analysis of Financial Condition and                                                                       |    |   |
|         | Results of Operations ----------------------------------------------------------------------------------------------------------      | 9 - 16  |   |
|         |                                                                                                                                  |    |   |
| Item 7A      | Quantitative and Qualitative Disclosures about Market Risk --------------------------------------------------------                   | 16      |   |
|         |                                                                                                                                  |    |   |
| Item 8       | Financial Statements and Supplementary Data --------------------------------------------------------------------------                | 17 - 40 |   |
|         |                                                                                                                                  |    |   |
| Item 9       | Changes in and Disagreements with Accountants on Accounting and                                                                       |    |   |
|         | Financial Disclosure -----------------------------------------------------------------------------------------------------------      | 41      |   |
|         |                                                                                                                                  |    |   |
| Item 9A      | Controls and Procedures -----------------------------------------------------------------------------------------------------         | 41      |   |
|         |                                                                                                                                  |    |   |
| Item 9B      | Other Information ---------------------------------------------------------------------------------------------------------------     | 41      |   |
|         |                                                                                                                                  |    |   |
|         | Part III                                                                                                                              |    |   |
|         |                                                                                                                                  |    |   |
| Item 10      | Directors, Executive Officers and Corporate Governance -----------------------------------------------------------                    | 42      |   |
|         |                                                                                                                                  |    |   |
| Item 11      | Executive Compensation -----------------------------------------------------------------------------------------------------          | 42      |   |
|         |                                                                                                                                  |    |   |
| Item 12      | Security Ownership of Certain Beneficial Owners and Management                                                                        |    |   |
|         | and Related Stockholder Matters ------------------------------------------------------------------------------------------            | 42      |   |
|         |                                                                                                                                  |    |   |
| Item 13      | Certain Relationships and Related Transactions, and Director Independence ---------------------------------                           | 42      |   |
|         |                                                                                                                                  |    |   |
| Item 14      | Principal Accounting Fees and Services ---------------------------------------------------------------------------------              | 42      |   |
|         |                                                                                                                                  |    |   |
|         | Part IV                                                                                                                               |    |   |
|         |                                                                                                                                  |    |   |
| Item 15      | Exhibits, Financial Statement Schedules ---------------------------------------------------------------------------------             | 43 - 44 |   |
|         |                                                                                                                                  |    |   |
|         | Signatures -----------------------------------------------------------------------------------------------------------------------    | 45      |   |
|         |                                                                                                                                  |    |   |
|         | Exhibits                                                                                                                              |    |   |
|         |                                                                                                                                  |    |   |
| Exhibit 21   | A. T. Cross Company Subsidiaries, Branches and Divisions ------------------------------------------------------                       | 46      |   |
|         |                                                                                                                                  |    |   |
| Exhibit 23   | Consent of Independent Registered Public Accounting Firm -----------------------------------------------------                        | 47      |   |
|         |                                                                                                                                  |    |   |
| Exhibit 31.1 | Form of 302 Certifications ---------------------------------------------------------------------------------------------------        | 48      |   |
|         |                                                                                                                                  |    |   |
| Exhibit 31.2 | Form of 302 Certifications ---------------------------------------------------------------------------------------------------        | 49      |   |
|         |                                                                                                                                  |    |   |
| Exhibit 32   | Form of 906 Certifications ---------------------------------------------------------------------------------------------------        | 50      |   |

----

| Item 1 | BUSINESS |
|--------|----------|

----

----

----

| NAME                 | AGE | TITLE | YEAR IN WHICHFIRST HELD OFFICE                               |
|----------------------|-----|-------|--------------------------------------------------------------|
| David G. Whalen      | (1) | 53    | President and Chief Executive Officer                        | 1999 |
| Kevin F. Mahoney     | (2) | 51    | Senior Vice President, Finance andChief Financial Officer    | 2009 |
| Gary S. Simpson      | (3) | 59    | Corporate Controller, Chief Accounting Officer               | 1997 |
| Charles S. Mellen    | (4) | 47    | President, Cross Accessory Division                          | 2007 |
| Tina C. Benik        | (5) | 51    | Vice President, Legal and Human ResourcesCorporate Secretary | 2000 |
| Joseph V. Bassi      | (6) | 58    | Finance Director                                             | 1997 |
| Charles R. MacDonald | (7) | 57    | President, Cross Optical Group, Inc.                         | 2010 |

| (1) | Prior to becoming President and Chief Executive Officer in 1999, David G. Whalen was President, North America of Ray-Ban Sun Optics, a division of the Luxottica Group S.p.A., from 1997 to 1999.                                                                                                                                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Prior to becoming Senior Vice President, Finance and Chief Financial Officer in 2009, Kevin F. Mahoney was Vice President, Finance and Chief Financial Officer from 2005 to 2009.  From 2004 to 2005, Mr. Mahoney was Director, Corporate Development at the Raytheon Company, and from 1984 to 2004, Mr. Mahoney was with Deloitte & Touche LLP, most recently serving as Partner.                                                 |
| (3) | Prior to becoming Corporate Controller in 1997, Gary S. Simpson was the Controller, Lincoln Operations from 1992 to 1997.                                                                                                                                                                                                                                                                                                                         |
| (4) | Prior to becoming President, Cross Accessory Division in 2007, Charles S. Mellen was Senior Vice President, Global Marketing and Sales from 2006 to 2007 and Vice President, Global Marketing from 2005 to 2006.  From 1996 to 2004, Mr. Mellen was Vice President of Marketing at Tumi, Inc.                                                                                                                                           |
| (5) | Prior to becoming Vice President, Legal and Human Resources; Corporate Secretary in 2000, Tina C. Benik was Vice President, Legal, General Counsel and Corporate Secretary from 1993 to 2000.                                                                                                                                                                                                                                                     |
| (6) | Prior to becoming Finance Director in 1997, Joseph V. Bassi was Manager, Financial Planning from 1996 to 1997 and Manager, Budgeting and Financial Planning from 1987 to 1996.                                                                                                                                                                                                                                                                    |
| (7) | Prior to becoming President, Cross Optical Group, Inc. in 2010, Charles R. MacDonald was President, Cross Optical Group and Costa Del Mar Sunglasses, Inc. from 2007 to 2010.  From 2003 to 2007, he was Vice President, A.T. Cross Optical Division and President, Costa Del Mar Sunglasses, Inc.  From 1996 to 2002, Mr. MacDonald was President of Outlook Eyewear Company, a division of the Luxottica Group S.p.A.  |

| Item 1A | RISK FACTORS |
|---------|--------------|

----

----

| Item 1B | UNRESOLVED STAFF COMMENTS |
|---------|---------------------------|

| Item 2 | PROPERTIES |
|--------|------------|

| Item 3 | LEGAL PROCEEDINGS |
|--------|-------------------|

| Item 4 | (REMOVED AND RESERVED) |
|--------|------------------------|

----

| Item 5 | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|--------|--------------------------------------------------------------------------------------------------------------|

|   | 2010    |   | 2009  |
|--------|---------|--------|-------|
|   | QUARTER | HIGH   | LOW   |   | QUARTER | HIGH | LOW |
|   | First   | $5.32  | $3.54 |   | First | $3.06 | $1.62 |
|   | Second  | $5.02  | $4.05 |   | Second | $4.95 | $2.35 |
|   | Third   | $7.17  | $4.11 |   | Third | $4.97 | $3.05 |
|   | Fourth  | $10.17 | $5.82 |   | Fourth | $6.93 | $3.50 |

----

| Company/Index/Composite | 2005   | 2006   | 2007   | 2008  | 2009   | 2010   |
|-------------------------|--------|--------|--------|-------|--------|--------|
| A.T. Cross Company      | 100.00 | 187.65 | 246.42 | 68.64 | 129.14 | 238.27 |
| Russell 2000            | 100.00 | 118.37 | 116.51 | 77.15 | 98.11  | 124.46 |
| NYSE Amex Composite     | 100.00 | 119.54 | 144.62 | 87.02 | 118.50 | 152.13 |
| NASDAQ Composite        | 100.00 | 111.16 | 124.64 | 73.80 | 107.07 | 125.99 |

|                                 | TOTALNUMBEROF SHARESPURCHASED | AVERAGEPRICE PAIDPER SHARE | TOTAL NUMBEROF SHARESPURCHASED ASPART OF PUBLICLYANNOUNCED PLANSOR PROGRAMS | MAXIMUM NUMBEROF SHARES THATMAY YET BEPURCHASEDUNDER THE PLANSOR PROGRAMS |
|--------------------------------------|-------------------------------|----------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------|
| October 3, 2010 - October 30, 2010   | -                             |                       | -                                                                           | -                                                                         |   | 460,434 |   |
| October 31, 2010 - November 27, 2010 | 21,302                        |                       | $6.12                                                                       | 21,302                                                                    |   | 439,132 |   |
| November 28, 2010 - January 1, 2011  |   8,398             |                       | $7.04                                                                       |   8,398                                                         |   | 430,734 |   |
| Total                                | 29,700                        |                       | $6.38                                                                       | 29,700                                                                    |   |   |   |

| Item 6 | SELECTED FINANCIAL DATA |
|--------|-------------------------|

|                                                  | 2010     | 2009     | 2008*    | 2007     | 2006     |
|-------------------------------------------------------|----------|----------|----------|----------|----------|
| OPERATIONS:  (THOUSANDS OF DOLLARS)         |     |     |     |     |     |   |
| Net Sales                                             | $158,312 | $141,764 | $160,146 | $151,885 | $139,336 |   |
| Operating Income                                      | 9,324    |     | 1,300    |     | 3,551    |   | 4,799 |   | 4,799 |   |
| Net Income                                            | 6,373    |     | 1,855    |     | 494      |   | 3,287 |   | 3,287 |   |
|                                                  |     |     |     |     |     |
| PER SHARE DATA:  (DOLLARS)                  |     |     |     |     |     |
| Net Income Per Share                                  | Basic    | 0.50     |     | 0.13     |     | 0.03 |   | 0.45 |   | 0.22 |   |
| Diluted                                               | 0.49     |     | 0.13     |     | 0.03     |   | 0.43 |   | 0.22 |   |
|                                                  |     |     |     |     |     |
| FINANCIAL POSITION:  (THOUSANDS OF DOLLARS) |     |     |     |     |     |
| Total Assets                                          | 144,626  |     | 138,419  |     | 143,959  |   | 129,037 |   | 119,446 |   |
| Long-Term Retirement Plan Obligations                 | 16,274   |     | 14,726   |     | 14,681   |   | 5,067 |   | 7,779 |   |
| Long-Term Debt, Less Current Maturities               | 19,221   |     | 19,721   |     | 21,721   |   | - |   | 7,100 |   |
| Other Long-Term Liabilities                           | 2,111    |     | 2,672    |     | 4,447    |   | 4,106 |   | 1,308 |   |
| Shareholders' Equity                                  | 72,465   |     | 71,450   |     | 73,661   |   | 83,215 |   | 72,963 |   |

----

| Item 7 | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------|---------------------------------------------------------------------------------------|

----

| (THOUSANDS OF DOLLARS) | FISCAL 2010                    | FISCAL 2009 | PERCENTAGE CHANGE              |
|------------------------|--------------------------------|-------------|--------------------------------|
| CAD                    | $  97,776            |        | $  90,892            |   | 7.6% |
| COG                    |     60,536 |        |     50,872 |   | 19.0% |
|                   | Consolidated Net Sales         | $158,312    |                           | $141,764 |   | 11.7% |

| Gross Profit Margins: | FISCAL 2010                      | FISCAL 2009 | PERCENTAGE POINT CHANGE |
|-----------------------|----------------------------------|-------------|-------------------------|
|                  | CAD                              | 53.9%       |                    | 52.5% |   | 1.4 |
|                  | COG                              | 59.1%       |                    | 57.0% |   | 2.1 |
|                  | Consolidated Gross Profit Margin | 55.9%       |                    | 54.1% |   | 1.8 |

----

| (THOUSANDS OF DOLLARS) | FISCAL 2009                    | FISCAL 2008 | PERCENTAGE CHANGE              |
|------------------------|--------------------------------|-------------|--------------------------------|
| CAD                    | $  90,892            |        | $111,455                       |   | (18.4)% |
| COG                    |     50,872 |        |     48,691 |   | 4.5% |
|                   | Consolidated Net Sales         | $141,764    |                           | $160,146 |   | (11.5)% |

| Gross Profit Margins: | FISCAL 2009                      | FISCAL 2008 | PERCENTAGE POINT CHANGE |
|-----------------------|----------------------------------|-------------|-------------------------|
|                  | CAD                              | 52.5%       |                    | 54.3% |   | (1.8) |
|                  | COG                              | 57.0%       |                    | 59.2% |   | (2.2) |
|                  | Consolidated Gross Profit Margin | 54.1%       |                    | 55.8% |   | (1.7) |

----

----

| COVENANTDESCRIPTION             |   | COVENANTREQUIREMENT                                                                                                   |   | CALCULATED COMPANYVALUE JANUARY 1, 2011 |
|---------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|
| Consolidated Tangible Net Worth |   | Cannot be less than $37.5 million plus 50%of Net Income for fiscal years after 2010                                   |   | $48 million                             |
| Capital Expenditures            |   | Cannot exceed the greater of $10 millionin a year or $10 million plus prior yearexpenditures less the $10 million cap |   | $5 million                              |
| Consolidated Leverage Ratio     |   | Cannot exceed 2.75 to 1                                                                                               |   | 1.0:1                                   |

| (THOUSANDS OF DOLLARS)               | TOTAL                                                                                                                            | LESS THAN 1 YEAR | 1 TO 3 YEARS                                                         | 3 TO 5 YEARS | MORE THAN 5 YEARS                         |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|------------------|----------------------------------------------------------------------|--------------|-------------------------------------------|
| Line of Credit, Including Interest * | $20,234                                                                                                                          |             | $           - |         | $20,234                                   |   | $         - |   | $        - |   |
| Operating Leases                     | 17,262                                                                                                                           |             | 3,114                                                                |         | 8,008                                     |   | 4,822 |   | 1,318 |   |
| Uncertain Tax Liabilities            | 487                                                                                                                              |             | 113                                                                  |         | 162                                       |   | 152 |   | 60 |   |
| Pension Plan Obligations **          | 21,941                                                                                                                           |             | 6,100                                                                |         | 9,411                                     |   | 3,671 |   | 2,759 |   |
| Legal Obligations ***                | 400                                                                                                                              |             | 200                                                                  |         | 200                                       |   | - |   | - |   |
| Purchase Obligations                 |    3,828                                                                                                          |             |   2,585                                                    |         |       1,243 |   |           - |   |            - |   |
| Total                                | $64,152                                                                                                                          |             | $12,112                                                              |         | $39,258                                   |   | $8,645 |   | $4,137 |   |
|                                 |                                                                                                                             |
| *                                    | Interest on the line of credit was calculated using the interest rate as of January 1, 2011 over the remaining life of the note. |

----

| **  | The Company expects to meet or exceed its minimum funding requirements for its defined benefit retirement plans in future years.  Though there is uncertainty as to the exact amount and timing of these payments, the Company anticipates the future funding requirements to be between $1.6 million and $3.3 million per year. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *** | As part of the acquisition of Native Eyewear, the Company assumed the liability of future payments associated with a "settlement in lieu of future royalties."                                                                                                                                                                             |

----

----

| Item 7A | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

----

| Item 8 | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
|--------|---------------------------------------------|

|                                                                                                                       | PAGE                                                                                                                        |
|----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                       |                                                                                                                        |
| Report of Independent Registered Public Accounting Firm ------------------------------------------------------------------ | 18                                                                                                                          |
| Consolidated Financial Statements of the A.T. Cross Company:                                                               |                                                                                                                        |
|                                                                                                                       |                                                                                                                        |   |
|                                                                                                                       | Consolidated Balance Sheets as of January 1, 2011 and January 2, 2010 --------------------------------------------          | 19 |
|                                                                                                                       | Consolidated Statements of Income for the Years Ended                                                                       |   |
|                                                                                                                       |                                                                                                                        | January 1, 2011, January 2, 2010 and January 3, 2009 --------------------------------------------------------------- | 20 |
|                                                                                                                       | Consolidated Statements of Comprehensive Income (Loss) for the Years Ended                                                  |   |
|                                                                                                                       |                                                                                                                        | January 1, 2011, January 2, 2010 and January 3, 2009 --------------------------------------------------------------- | 20 |
|                                                                                                                       | Consolidated Statements of Changes in Shareholders' Equity for the Years Ended                                              |   |
|                                                                                                                       |                                                                                                                        | January 1, 2011, January 2, 2010 and January 3, 2009  -------------------------------------------------------------- | 21 |
|                                                                                                                       | Consolidated Statements of Cash Flows for the Years Ended                                                                   |   |
|                                                                                                                       |                                                                                                                        | January 1, 2011, January 2, 2010 and January 3, 2009 --------------------------------------------------------------- | 22 |
|                                                                                                                       | Notes to Consolidated Financial Statements -------------------------------------------------------------------------------- | 23 - 40 |

----

----

| (THOUSANDS OF DOLLARS AND SHARES)                                      | JANUARY 1, 2011 |   | JANUARY 2, 2010 |
|------------------------------------------------------------------------|-----------------|--------|-----------------|
| ASSETS                                                                 |            |   |            |
| Current Assets                                                         |            |   |            |
| Cash and cash equivalents                                              |  $16,650   |   |  $10,443   |
| Short-term investments                                                 |  2,514     |   |  7,217     |
| Accounts receivable, net                                               |  29,562    |   |  29,546    |
| Inventories                                                            |  31,320    |   |  25,329    |
| Deferred income taxes                                                  |  5,590     |   |  5,092     |
| Other current assets                                                   |  4,883     |   |  5,895     |
| Total Current Assets                                                   |  90,519    |   |  83,522    |
|                                                                   |            |   |            |
| Property, Plant and Equipment, Net                                     |  15,082    |   |  15,953    |
| Goodwill                                                               |  15,279    |   |  15,279    |
| Intangibles, Net                                                       |  9,458     |   |  10,383    |
| Deferred Income Taxes                                                  |  11,318    |   |  11,778    |
| Other Assets                                                           |  2,970     |   |  1,504     |
| Total Assets                                                           |  $144,626  |   |  $138,419  |
|                                                                   |            |   |            |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                   |            |   |            |
| Current Liabilities                                                    |            |   |            |
| Accounts payable                                                       |  $7,693    |   |  $6,382    |
| Accrued compensation and related taxes                                 |  7,811     |   |  5,504     |
| Accrued expenses and other liabilities                                 |  11,871    |   |  10,979    |
| Retirement plan obligations                                            |  2,437     |   |  2,378     |
| Restructuring liabilities                                              |  -         |   |  771       |
| Income taxes payable                                                   |  2,006     |   |  577       |
| Total Current Liabilities                                              |  31,818    |   |  26,591    |
|                                                                   |            |   |            |
| Long-Term Debt                                                         |  19,221    |   |  19,721    |
| Retirement Plan Obligations                                            |  16,274    |   |  14,726    |
| Deferred Gain on Sale of Real Estate                                   |  2,737     |   |  3,259     |
| Other Long-Term Liabilities                                            |  687       |   |  1,231     |
| Accrued Warranty Costs                                                 |  1,424     |   |  1,441     |
| Commitments and Contingencies (Note L)                                 |  -         |   |  -         |
| Total Liabilities                                                      |  72,161    |   |  66,969    |
| Shareholders' Equity                                                   |            |   |            |
| Common stock, par value $1 per share:                                  |            |   |            |
| Class A - authorized 40,000 shares, 18,439 shares issued and           |            |   |            |
| 11,115 shares outstanding at January 1, 2011, and 17,660               |            |   |            |
| shares issued and 11,854 shares outstanding at January 2, 2010         |  18,439    |   |  17,660    |
| Class B - authorized 4,000 shares, 1,805 shares issued and             |            |   |            |
| outstanding at January 1, 2011 and January 2, 2010                     |  1,805     |   |  1,805     |
| Additional paid-in capital                                             |  26,014    |   |  23,574    |
| Retained earnings                                                      |  81,114    |   |  74,741    |
| Accumulated other comprehensive loss                                   |  (12,659)  |   |  (10,998)  |
| Treasury stock, at cost, 7,324 shares in 2010 and 5,806 shares in 2009 |  (42,248)  |   |  (35,332)  |
| Total Shareholders' Equity                                             |  72,465    |   |  71,450    |
| Total Liabilities and Shareholders' Equity                             |  $144,626  |   |  $138,419  |

----

| (THOUSANDS OF DOLLARS AND SHARES,            |            |   | YEARS ENDED     |   |            |
|----------------------------------------------|-----------------|--------|-----------------|--------|-----------------|
| EXCEPT PER SHARE AMOUNTS)                    | JANUARY 1, 2011 |   | JANUARY 2, 2010 |   | JANUARY 3, 2009 |
|                                         |            |   |            |   |            |
| Net sales                                    |  $158,312  |   |  $141,764  |   |  $160,146  |
| Cost of goods sold                           |  69,836    |   |  65,046    |   |  70,834    |
| Gross Profit                                 |  88,476    |   |  76,718    |   |  89,312    |
|                                         |            |   |            |   |            |
| Selling, general and administrative expenses |  68,817    |   |  63,978    |   |  69,793    |
| Service and distribution costs               |  7,524     |   |  6,763     |   |  7,054     |
| Research and development expenses            |  2,811     |   |  2,817     |   |  2,444     |
| Goodwill impairment charge                   |  -         |   |  -         |   |  3,944     |
| Restructuring charges                        |  -         |   |  1,860     |   |  2,526     |
| Operating Income                             |  9,324     |   |  1,300     |   |  3,551     |
|                                         |            |   |            |   |            |
| Interest income                              |  25        |   |  41        |   |  96        |
| Interest expense                             |  (975)     |   |  (1,166)   |   |  (941)     |
| Other (expense) income                       |  (270)     |   |  195       |   |  63        |
| Interest and Other (Expense) Income          |  (1,220)   |   |  (930)     |   |  (782)     |
|                                         |            |   |            |   |            |
| Income Before Income Taxes                   |  8,104     |   |  370       |   |  2,769     |
| Income tax provision (benefit)               |  1,731     |   |  (1,485)   |   |  2,275     |
| Net Income                                   |  $6,373    |   |  $1,855    |   |  $494      |
|                                         |            |   |            |   |            |
| Net Income Per Share:                        |            |   |            |   |            |
| Basic                                        | $0.50           |   | $0.13           |   | $0.03           |
| Diluted                                      | $0.49           |   | $0.13           |   | $0.03           |
|                                         |            |   |            |   |            |
| Weighted Average Shares Outstanding:         |            |   |            |   |            |
| Denominator for Basic Net Income Per Share   |  12,686    |   |  14,772    |   |  14,987    |
| Effect of dilutive securities                |  379       |   |  10        |   |  341       |
| Denominator for Diluted Net Income Per Share |  13,065    |   |  14,782    |   |  15,328    |

| (THOUSANDS OF DOLLARS)                                       |            |   | YEARS ENDED     |   |            |
|--------------------------------------------------------------|-----------------|--------|-----------------|--------|-----------------|
|                                                         | JANUARY 1, 2011 |   | JANUARY 2, 2010 |   | JANUARY 3, 2009 |
|                                                         |            |   |            |   |            |
| Net Income                                                   |  $6,373    |   |  $1,855    |   |  $494      |
|                                                         |            |   |            |   |            |
| Other Comprehensive Income (Loss):                           |            |   |            |   |            |
| Foreign currency translation adjustments                     |  (302)     |   |  716       |   |  (2,234)   |
| Unrealized gain (loss) on interest rate swap, net of tax     |            |   |            |   |
| (provision) benefit of  $(125), ($87) and $275     |  232       |   |  161       |   |  (512)     |
| Pension liability adjustment, net of tax benefit   |            |   |            |   |            |
| (provision) of $877, ($152) and $3,879                       |  (1,591)   |   |  81        |   |  (7,205)   |
| Comprehensive Income (Loss)                                  |  $4,712    |   |  $2,813    |   |  $(9,457)  |

----

| (THOUSANDS OF DOLLARS AND SHARES)                   | COMMON STOCK                   |         |          |          |            |        | TOTAL           |
|-----------------------------------------------------|--------------------------------|--------------|---------------|---------------|-----------------|-------------|-----------------|
|                                                | SHARES & DOLLAR AMOUNT     | ADDITIONAL   |          | OTHER         |            |        | SHARE-          |
|                                                | AT $1 PAR VALUE                | PAID-IN      | RETAINED      | COMPREHEN-    | TREASURY STOCK  | HOLDERS'    |
|                                                | CLASS A                        | CLASS B      | CAPITAL       | EARNINGS      | SIVE LOSS       | SHARES      | AMOUNT          | EQUITY |
|  Balances at December 29, 2007                 |  $17,135                  |  $1,805 |  $20,202 |  $72,392 |  $(2,005)  |  3,400 |  $(26,314) |  $83,215 |
|  Purchase of treasury stock                    |                           |         |          |          |            |  361   |  (1,529)   |  (1,529) |
|  Grant of restricted stock for future services |  446                      |         |  (446)   |          |            |        |            |  - |
|  Cancellation of restricted stock              |                           |         |  271     |          |            |  54    |  (271)     |  - |
|  Tax benefit from stock-based awards           |                           |         |  1       |          |            |        |            |  1 |
|  Stock purchase plan                           |  3                        |         |  19      |          |            |        |            |  22 |
|  Non-cash stock-based directors' fees          |  25                       |         |  141     |          |            |        |            |  166 |
|  Amortization of stock-based compensation      |                           |         |  1,224   |          |            |        |            |  1,224 |
|  Stock option expense           |                           |         |  19      |          |            |        |            |  19 |
|  Foreign currency translation adjustments      |                           |         |          |          |  (2,234)   |        |            |  (2,234) |
|  Pension liability adjustment                  |                           |         |          |          |  (7,205)   |        |            |  (7,205) |
|  Unrealized loss on interest rate swap         |                           |         |          |          |  (512)     |        |            |  (512) |
|  Net Income                                    |                           |         |          |  494     |            |        |            |  494 |
|  Balances at January 3, 2009                   |  $17,609                  |  $1,805 |  $21,431 |  $72,886 |  $(11,956) |  3,815 |  $(28,114) |  $73,661 |
|  Purchase of treasury stock                    |                           |         |          |          |            |  273   |  (678)     |  (678) |
|  Purchase of treasury stock from related party |                           |         |          |          |            |  1,500 |  (5,182)   |  (5,182) |
|  Cancellation of restricted stock              |                           |         |  1,358   |          |            |  218   |  (1,358)   |  - |
|  Tax provision on stock-based awards           |                           |         |  (139)   |          |            |        |            |  (139) |
|  Stock purchase plan                           |  5                        |         |  11      |          |            |        |            |  16 |
|  Non-cash stock-based directors' fees          |  46                       |         |  102     |          |            |        |            |  148 |
|  Amortization of stock-based compensation      |                           |         |  548     |          |            |        |            |  548 |
|  Stock option expense           |                           |         |  263     |          |            |        |            |  263 |
|  Foreign currency translation adjustments      |                           |         |          |          |  716       |        |            |  716 |
|  Pension liability adjustment                  |                           |         |          |          |  81        |        |            |  81 |
|  Unrealized gain on interest rate swap         |                           |         |          |          |  161       |        |            |  161 |
|  Net Income                                    |       |         |          |  1,855   |            |        |            |  1,855 |
|  Balances at January 2, 2010                   |  $17,660                  |  $1,805 |  $23,574 |  $74,741 |  $(10,998) |  5,806 |  $(35,332) |  $71,450 |
|  Purchase of treasury stock                    |                           |         |          |          |            |  43    |  (267)     |  (267) |
|  Purchase of treasury stock from related party |                           |         |          |          |            |  1,371 |  (5,612)   |  (5,612) |
|  Grant of restricted stock for future services |  725                      |         |  (725)   |          |            |        |            |  - |
|  Cancellation of restricted stock              |                           |         |  1,037   |          |            |  104   |  (1,037)   |  - |
|  Stock option activity, net of settlements     |  18                       |         |  (94)    |          |            |        |            |  (76) |
|  Tax provision on stock-based awards           |                           |         |  70      |          |            |        |            |  70 |
|  Stock purchase plan                           |  4                        |         |  15      |          |            |        |            |  19 |
|  Non-cash stock-based directors' fees          |  32                       |         |  121     |          |            |        |            |  153 |
|  Amortization of stock-based compensation      |                           |         |  1,077   |          |            |        |            |  1,077 |
|  Stock option expense           |                           |         |  939     |          |            |        |            |  939 |
|  Foreign currency translation adjustments      |                           |         |  -       |          |  (302)     |        |            |  (302) |
|  Pension liability adjustment                  |                           |         |          |          |  (1,591)   |        |            |  (1,591) |
|  Unrealized gain on interest rate swap         |                           |         |          |          |  232       |        |            |  232 |
|  Net Income                                    |                           |         |          |  6,373   |            |        |            |  6,373 |
|  Balances at January 1, 2011                   |  $18,439                  |  $1,805 |  $26,014 |  $81,114 |  $(12,659) |  7,324 |  $(42,248) |  $72,465 |

----

| (THOUSANDS OF DOLLARS)                                       |            |   | YEARS ENDED     |   |            |
|--------------------------------------------------------------|-----------------|--------|-----------------|--------|-----------------|
| CASH PROVIDED BY (USED IN):                                  | JANUARY 1, 2011 |   | JANUARY 2, 2010 |   | JANUARY 3, 2009 |
| Operating Activities:                                        |            |   |            |   |            |
| Net Income                                                   |  $6,373    |   |  $1,855    |   |  $494      |
| Adjustments to reconcile net income to net cash              |            |   |            |   |            |
| provided by operating activities:                            |            |   |            |   |            |
| Depreciation                                                 |  5,404     |   |  4,841     |   |  4,851     |
| Amortization                                                 |  1,211     |   |  1,032     |   |  930       |
| Goodwill impairment charge                                   |  -         |   |  -         |   |  3,944     |
| Restructuring charges                                        |  -         |   |  1,860     |   |  2,526     |
| Restructuring charges paid                                   |  (771)     |   |  (1,926)   |   |  (446)     |
| Amortization of deferred gain                                |  (522)     |   |  (521)     |   |  (521)     |
| Provision for bad debts                                      |  139       |   |  691       |   |  226       |
| Deferred income taxes                                        |  590       |   |  (1,458)   |   |  1,770     |
| Provision for accrued warranty costs                         |  797       |   |  705       |   |  820       |
| Warranty costs paid                                          |  (735)     |   |  (592)     |   |  (754)     |
| Stock-based compensation and directors' fees                 |  2,170     |   |  820       |   |  1,390     |
| Excess tax provision (benefit) from stock-based awards       |  70        |   |  139       |   |  (1)       |
| Unrealized (gain) loss on short-term investments             |  (29)      |   |  268       |   |  (111)     |
| Unrealized loss (gain) on foreign exchange contracts         |  154       |   |  (503)     |   |  (306)     |
| (Decrease) increase in non-income based tax reserves         |  (193)     |   |  (338)     |   |  83        |
| Unrealized foreign currency transaction loss (gain)          |  84        |   |  (73)      |   |  209       |
| Changes in operating assets and liabilities:                 |            |   |            |   |            |
| Accounts receivable                                          |  1         |   |  151       |   |  (252)     |
| Inventories                                                  |  (6,034)   |   |  1,659     |   |  6,213     |
| Other assets                                                 |  (438)     |   |  3,633     |   |  (1,468)   |
| Accounts payable                                             |  1,317     |   |  1,380     |   |  (3,361)   |
| Other liabilities                                            |  3,208     |   |  (2,101)   |   |  (1,983)   |
| Net Cash Provided by Operating Activities                    |  12,796    |   |  11,522    |   |  14,253    |
| Investing Activities:                                        |            |   |            |   |            |
| Acquisition of Native Eyewear, Inc., net of cash acquired    |  -         |   |  (481)     |   |  (18,535)  |
| Purchases of short-term investments                          |  (17,040)  |   |  (40,192)  |   |  (2,332)   |
| Sales of short-term investments                              |  21,772    |   |  33,900    |   |  1,250     |
| Additions to property, plant and equipment                   |  (4,533)   |   |  (5,149)   |   |  (4,543)   |
| Additions to trademarks and patents                          |  (286)     |   |  (288)     |   |  (298)     |
| Net Cash Used in Investing Activities                        |  (87)      |   |  (12,210)  |   |  (24,458)  |
| Financing Activities:                                        |            |   |            |   |            |
| Excess tax (provision) benefit from stock-based awards       |  (70)      |   |  (139)     |   |  1         |
| Borrowing on long-term debt agreement                        |  5,860     |   |  -         |   |  22,471    |
| Repayment of long-term debt                                  |  (6,360)   |   |  (2,000)   |   |  (1,735)   |
| Repayment of line of credit                                  |            |   |  -         |   |  (2,925)   |
| Proceeds from sale of Class A common stock, net              |  (58)      |   |  16        |   |  22        |
| Purchase of treasury stock                                   |  (267)     |   |  (678)     |   |  (1,529)   |
| Purchase of treasury stock from related party                |  (5,612)   |   |  (5,182)   |   |  -         |
| Net Cash (Used in) Provided by Financing Activities          |  (6,507)   |   |  (7,983)   |   |  16,305    |
| Effect of exchange rate changes on cash and cash equivalents |  5         |   |  485       |   |  (1,043)   |
| Increase (Decrease) in Cash and Cash Equivalents             |  6,207     |   |  (8,186)   |   |  5,057     |
| Cash and cash equivalents at beginning of period             |  10,443    |   |  18,629    |   |  13,572    |
| Cash and Cash Equivalents at End of Period                   |  $16,650   |   |  $10,443   |   |  $18,629   |
|                                                         |            |   |            |   |            |
| SUPPLEMENTAL INFORMATION                                     |            |   |            |   |            |
| Income taxes (refunded) paid, net                            |  $(609)    |   |  $(3,152)  |   |  $1,988    |
| Interest paid                                                |  $974      |   |  $1,249    |   |  $941      |

----

|                                                |            |   | YEARS ENDED     |   |            |
|-----------------------------------------------------|-----------------|--------|-----------------|--------|-----------------|
| (THOUSANDS OF DOLLARS)                              | JANUARY 1, 2011 |   | JANUARY 2, 2010 |   | JANUARY 3, 2009 |
|                                                |            |   |            |   |            |
| Allowance for Doubtful Accounts - Beginning of Year |  $1,129    |   |  $1,068    |   |  $879      |
| Charged to bad debt expense                         |  139       |   |  691       |   |  226       |
| Deductions                                          |  (199)     |   |  (630)     |   |  (37)      |
| Allowance for Doubtful Accounts - End of Year       |  $1,069    |   |  $1,129    |   |  $1,068    |

----

| Furniture & Fixtures          | 2 to 10                 |  Years |
|-----------------------------------|-------------------------|-------------|
| Machinery & Equipment         | 2 to 10                 |  Years |
| Leasehold Improvements            | 3 to 15                 |  Years |
| Vehicles, Tooling and Desktop PCs | 2 to   5 |  Years |

|                               | YEARS ENDED     |
|------------------------------------|-----------------|
| (THOUSANDS OF DOLLARS)             | JANUARY 1, 2011 |   | JANUARY 2, 2010 |
| Leasehold improvements             |  $1,826    |   |  $1,675 |
| Machinery and equipment            |  103,123   |   |  101,141 |
|                               |  104,949   |   |  102,816 |
| Less accumulated depreciation      |  89,867    |   |  86,863 |
| Property, Plant and Equipment, Net |  $15,082   |   |  $15,953 |

----

|                                           |            |   | YEARS ENDED     |   |            |
|------------------------------------------------|-----------------|--------|-----------------|--------|-----------------|
| (THOUSANDS OF DOLLARS)                         | JANUARY 1, 2011 |   | JANUARY 2, 2010 |   | JANUARY 3, 2009 |
| Accrued Warranty Costs - Beginning of Year     |  $1,936    |   |  $1,823    |   |  $1,730    |
| Warranty costs paid                            |  (735)     |   |  (592)     |   |  (754)     |
| Warranty costs accrued                         |  423       |   |  375       |   |  568       |
| Impact of changes in estimates and assumptions |  374       |   |  330       |   |  252       |
| Warranty liabilities assumed                   |  -         |   |  -         |   |  27        |
| Accrued Warranty Costs - End of Year           |  $1,998    |   |  $1,936    |   |  $1,823    |

----

|                   | YEARS ENDED     |
|------------------------|-----------------|
| (THOUSANDS OF DOLLARS) | JANUARY 1, 2011 |   | JANUARY 2, 2010 |
| Finished goods         |  $18,379   |   |  $13,972 |
| Work in process        |  3,229     |   |  3,154 |
| Raw materials          |  9,712     |   |  8,203 |
|                   |  $31,320   |   |  $25,329 |

| (THOUSANDS OF DOLLARS)         | SEVERANCE & RELATEDEXPENSES |   | PROFESSIONALFEES & OTHER |   | IMPAIRMENTOF ASSETS |   | TOTAL         |
|--------------------------------|---------------------------------|--------|------------------------------|--------|---------------------|--------|---------------|
| Balances at December 29, 2007  |  $-                        |   |  $-                     |   |  $-            |   |  $-      |
| Restructuring charges incurred |  807                       |   |  475                    |   |  1,244         |   |  2,526   |
| Non-cash charges               |  -                         |   |  -                      |   |  (1,233)       |   |  (1,233) |
| Cash payments                  |  (33)                      |   |  (413)                  |   |  -             |   |  (446)   |
| Foreign exchange effects       |  (2)                       |   |  (1)                    |   |  (11)          |   |  (14)    |
| Balances at January 3, 2009    |  $772                      |   |  $61                    |   |  $-            |   |  $833    |
| Restructuring charges incurred |  1,517                     |   |  343                    |   |  -             |   |  1,860   |
| Cash payments                  |  (1,618)                   |   |  (308)                  |   |  -             |   |  (1,926) |
| Foreign exchange effects       |  5                         |   |  (1)                    |   |  -             |   |  4       |
| Balances at January 2, 2010    |  $676                      |   |  $95                    |   |  $-            |   |  $771    |
| Cash payments                  |  (676)                     |   |  (95)                   |   |  -             |   |  (771)   |
| Balances at January 1, 2011    |  $-                        |   |  $-                     |   |  $-            |   |  $-      |

----

| (THOUSANDS OF DOLLARS) | JANUARY 1, 2011       |                     | JANUARY 2, 2010        |
|------------------------|-----------------------|--------------------------|------------------------|
|                   | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | OTHER INTANGIBLES, NET |   | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | OTHER INTANGIBLES, NET |
| Amortized:             |                  |                     |                   |   |   |   |   |
| Trademarks             |  $9,201          |  $8,805             |  $396             |   |  $9,108 |  $8,581 |  $527 |
| Patents                |  3,361           |  3,124              |  237              |   |  3,168 |  3,040 |  128 |
| Customer relationships |  3,170           |  1,245              |  1,925            |   |  3,170 |  792 |  2,378 |
| Non-compete agreements |  -               |  -                  |  -                |   |  800 |  350 |  450 |
|                   |  $15,732         |  $13,174            |  2,558            |   |  $16,246 |  $12,763 |  3,483 |
| Not Amortized:         |                  |                     |                   |   |   |   |   |
| Trade names            |                  |                     |  6,900            |   |   |   |  6,900 |
| Intangibles, Net       |                  |                     |  $9,458           |   |   |   |  $10,383 |

| (THOUSANDS OF DOLLARS) | 2011       |   | 2012       |   | 2013       |   | 2014       |   | 2015       |   | THEREAFTER |
|------------------------|------------|--------|------------|--------|------------|--------|------------|--------|------------|--------|------------|
|                   |  $697 |   |  $634 |   |  $578 |   |  $522 |   |  $127 |   |  $-   |

----

| (THOUSANDS OF DOLLARS)      | CUMULATIVE TRANSLATION ADJUSTMENTS |   | PENSIONLIABILITY ADJUSTMENT |   | INTEREST RATE SWAPAGREEMENTS |   | ACCUMULATEDOTHERCOMPREHENSIVELOSS |
|-----------------------------|------------------------------------|--------|-----------------------------|--------|------------------------------|--------|-----------------------------------|
| Balances at January 2, 2010 |  $(1,601)                     |   |  $(9,046)              |   |  $(351)                 |   |  $(10,998)                   |
| Current period change       |  (302)                        |   |  (1,591)               |   |  232                    |   |  (1,661)                     |
| Balances at January 1, 2011 |  $(1,903)                     |   |  $(10,637)             |   |  $(119)                 |   |  $(12,659)                   |

| (THOUSANDS OF DOLLARS) | CONTRACT AMOUNT U.S. $ EQUIVALENT |   | MATURITY DATE |   | UNREALIZED GROSS (LOSS) GAIN |
|------------------------|-----------------------------------|--------|---------------|--------|------------------------------|
| JANUARY 1, 2011        |                              |   |          |   |                         |
| Euro                   |  $11,931                     |   | 2011          |   |  $(75)                  |
| Sterling               |  5,267                       |   | 2011          |   |  (37)                   |
| Japanese Yen           |  4,529                       |   | 2011          |   |  (27)                   |
| Hong Kong Dollar       |  5,140                       |   | 2011          |   |  (8)                    |
| Taiwan Dollar          |  1,604                       |   | 2011          |   |  (7)                    |
| Total                  |  $28,471                     |   |          |   |  $(154)                 |
| JANUARY 2, 2010        |                              |   |          |   |                         |
| Euro                   |  $5,551                      |   | 2010          |   |  $108                   |
| Sterling               |  67                          |   | 2010          |   |  40                     |
| Japanese Yen           |  4,636                       |   | 2010          |   |  338                    |
| Hong Kong Dollar       |  3,877                       |   | 2010          |   |  7                      |
| Taiwan Dollar          |  1,423                       |   | 2010          |   |  10                     |
| Total                  |  $15,554                     |   |          |   |  $503                   |

----

----

| (THOUSANDS OF  DOLLARS)                                |   | 2010            |   | 2009            |
|------------------------------------------------------------------|--------|-----------------|--------|-----------------|
| Change in Projected Benefit Obligation                           |   |            |   |            |
| Benefit obligation at end of prior year                          |   |  $46,827   |   |  $47,265   |
| Service cost                                                     |   |  45        |   |  100       |
| Interest cost                                                    |   |  2,679     |   |  3,001     |
| Curtailments/Settlements                                         |   |  -         |   |  (3,381)   |
| Actuarial loss                                                   |   |  3,524     |   |  2,131     |
| Benefits paid                                                    |   |  (2,134)   |   |  (2,166)   |
| Administrative expenses paid                                     |   |  (72)      |   |  (123)     |
| Benefit Obligation at End of Year                                |   |  $50,869   |   |  $46,827   |
|                                                             |   |            |   |            |
| Change in Plan Assets                                            |   |            |   |            |
| Fair value of plan assets at end of prior year                   |   |  $30,369   |   |  $30,832   |
| Actual return on plan assets                                     |   |  3,091     |   |  4,058     |
| Employer contributions                                           |   |  1,674     |   |  146       |
| Plan settlements                                                 |   |  -         |   |  (2,378)   |
| Benefits paid                                                    |   |  (2,134)   |   |  (2,166)   |
| Administrative expenses paid                                     |   |  (72)      |   |  (123)     |
| Fair Value of Plan Assets at End of Year                         |   |  $32,928   |   |  $30,369   |
|                                                             |   |            |   |            |
| Funded Status                                                    |   |            |   |            |
| Deficiency of plan assets over projected benefit obligation      |   |  $(17,941) |   |  $(16,458) |
| Unrecognized prior service cost                                  |   |  82        |   |  94        |
| Unrecognized net actuarial loss                                  |   |  15,992    |   |  13,513    |
| Accrued Pension Cost (Included in Retirement Plan Obligations)   |   |  $(1,867)  |   |  $(2,851)  |
|                                                             |   |            |   |            |
| Amounts Recognized in the Consolidated Balance Sheets Consist of |   |            |   |            |
| Accrued benefit cost - current                                   |   |  $(1,997)  |   |  $(1,732)  |
| Accrued benefit cost - long-term                                 |   |  (15,944)  |   |  (14,726)  |
| Accumulated other comprehensive loss                             |   |  16,074    |   |  13,607    |
| Net Recognized Amount                                            |   |  $(1,867)  |   |  $(2,851)  |
|                                                             |   |            |   |            |
| Accumulated Benefit Obligation                                   |   |  $50,869   |   |  $46,827   |

| (THOUSANDS OF  DOLLARS)       |   | 2010          |   | 2009          |   | 2008          |
|-----------------------------------------|--------|---------------|--------|---------------|--------|---------------|
| Components of Net Periodic Benefit Cost |   |          |   |          |   |          |
| Service cost                            |   |  $45     |   |  $100    |   |  $80     |
| Interest cost                           |   |  2,679   |   |  3,001   |   |  2,919   |
| Expected return on plan assets          |   |  (2,465) |   |  (2,504) |   |  (2,975) |
| Amortization of transition obligation   |   |  -       |   |  7       |   |  7       |
| Amortization of prior service cost      |   |  11      |   |  31      |   |  65      |
| Recognized net actuarial (gain) loss    |   |  379     |   |  386     |   |  (1)     |
| Settlement gain                         |   |  -       |   |  (185)   |   |  -       |
| Net Periodic Benefit Cost               |   |  $649    |   |  $836    |   |  $95     |

----

|                                   | 2010           |          | 2009   |           | 2008          |
|----------------------------------------|----------------|---------------|--------|----------------|---------------|
| Assumptions:                           | DOMESTIC PLANS | FOREIGN PLANS |   | DOMESTIC PLANS | FOREIGN PLANS |   | DOMESTIC PLANS | FOREIGN PLANS |
| Weighted Average Assumptions Used      |           |          |   |           |          |   |   |
| to Determine Benefit Obligation        |           |          |   |           |          |   |   |   |
| Discount rate                          | 5.36%          | 5.15%         |   | 5.88%          | 5.90%         |   | 6.17% | 5.70% |
| Rate of compensation increase          | N/A            | N/A           |   | N/A            | N/A           |   | N/A | N/A |
| Weighted Average Assumptions Used      |           |          |   |           |          |   |   |
| to Determine Net Periodic Benefit Cost |           |          |   |           |          |   |   |
| Discount rate                          | 5.88%          | 5.90%         |   | 6.17%          | 5.70%         |   | 6.40% | 5.50% |
| Expected return on plan assets         | 7.80%          | 3.50%         |   | 7.80%          | 4.00%         |   | 8.13% | 4.30% |
| Rate of compensation increase          | N/A            | N/A           |   | N/A            | N/A           |   | N/A | N/A |

| Plan Asset Information: Asset Category | TARGETALLOCATIONFYE 2011 |   | ALLOCATION PERCENTAGEFYE 2010 |   | ALLOCATION PERCENTAGEFYE 2009 |
|---------------------------------------------|--------------------------|--------|-------------------------------|--------|-------------------------------|
| Domestic Equities                           | 35%                      |   | 35.0%                         |   | 17.9%                         |
| International Equities                      | 10%                      |   | 11.2%                         |   | 9.4%                          |
| Fixed Income Securities                     | 40%                      |   | 39.9%                         |   | 56.9%                         |
| All Asset Fund                              | 15%                      |   | 13.9%                         |   | 14.7%                         |
| Cash/Other                                  | 0%                       |   | 0.0%                          |   | 1.1%                          |
|                                        | 100%                     |   | 100%                          |   | 100%                          |

| (THOUSANDS OF DOLLARS) | 2011         |   | 2012         |   | 2013         |   | 2014         |   | 2015         |   | 2016 - 2020   |
|------------------------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|---------------|
|                   |  $2,143 |   |  $2,175 |   |  $2,310 |   |  $2,444 |   |  $2,579 |   |  $14,924 |

----

| Level 1 | Unadjusted quoted prices in active markets for identical assets.                                                                                                                              |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | Observable inputs other than those included in Level 1.  For example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets. |
| Level 3 | Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset.                                                                                       |

| (THOUSANDS OF DOLLARS)              | JANUARY 1, 2011 |   | JANUARY 2, 2010 |
|-------------------------------------|-----------------|--------|-----------------|
|                                | LEVEL 1         |   | LEVEL 2         |   | LEVEL 3 |   | TOTAL |   | LEVEL 1 |   | LEVEL 2 |   | LEVEL 3 |   | TOTAL |
| Assets:                             |            |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic Equities (A) (B)           |  $9,832    |   |  $-        |   |  $- |   |  $9,832 |   |  $4,135 |   |  $- |   |  $- |   |  $4,135 |
| International Equities (A)          |  2,532     |   |  -         |   |  - |   |  2,532 |   |  2,255 |   |  - |   |  - |   |  2,255 |
| Fixed Income Securities (A), (C)    |  10,111    |   |  -         |   |  - |   |  10,111 |   |  13,622 |   |  144 |   |  - |   |  13,766 |
| Foreign Fixed Income Securities (C) |  -         |   |  6,575     |   |  - |   |  6,575 |   |  - |   |  6,447 |   |  - |   |  6,447 |
| All Asset Fund (A)                  |  3,686     |   |  -         |   |  - |   |  3,686 |   |  3,515 |   |  - |   |  - |   |  3,515 |
| Cash and Cash Equivalents           |  192       |   |  -         |   |  - |   |  192 |   |  251 |   |  - |   |  - |   |  251 |
| Total Assets at Fair Value          |  $26,353   |   |  $6,575    |   |  $- |   |  $32,928 |   |  $23,778 |   |  $6,591 |   |  $- |   |  $30,369 |

|                                                           | 2010   |   | 2009   |   | 2008   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|
| Weighted average fair value per share of stock options granted | $1.28  |   | $0.89  |   | $1.38  |
|                                                           |   |   |   |   |   |
| Key assumptions used to value stock options granted:           |   |   |   |   |   |
| Weighted average risk-free rate                                | 1.56%  |   | 1.98%  |   | 1.98%  |
| Average expected life in years                                 | 3      |   | 7      |   | 7      |
| Volatility                                                     | 43.32% |   | 36.69% |   | 36.69% |
| Dividend yield                                                 | 0%     |   | 0%     |   | 0%     |

----

|                                                          | JANUARY 1, 2011 |   | JANUARY 2, 2010 |
|---------------------------------------------------------------|-----------------|--------|-----------------|
| Stock price used to determine intrinsic values at end of year | $9.79           |   | $4.98           |
|                                                          |            |   |            |
| (MILLIONS OF DOLLARS)                                         |            |   |            |
| Intrinsic value of stock options outstanding at end of year   | $7.6            |   | $0.9            |
| Intrinsic value of stock options exercisable at end of year   | $6.4            |   | $0.3            |
|                                                          |            |   |            |
| Intrinsic value of stock options exercised                    | $0.3            |   | N/A             |

|                                         | 2010   |   | 2009   |   | 2008   |
|----------------------------------------------|--------|--------|--------|--------|--------|
| (MILLIONS OF DOLLARS)                        |   |   |   |   |   |
| Fair value of shares vested at vesting dates | $1.4   |   | $0.4   |   | $1.3   |
| Compensation expense recognized              | $1.1   |   | $0.5   |   | $1.2   |

|                               | SHARES          |   | WEIGHTED AVERAGEEXERCISE PRICE        |   | SHARES RESERVED           |
|------------------------------------|-----------------|--------|---------------------------------------|--------|---------------------------|
| Shares reserved at January 2, 2010 |            |   |                                  |   |  2,395,476           |
| Stock Options:                     |            |   |                                  |   |                      |
| Outstanding at January 2, 2010     |  1,182,479 |   | $5.07                                 |   |  -    |
| Granted                            |  534,351   |   | $4.16                                 |   |  -    |
| Exercised                          |  (214,655) |   | $6.37                                 |   |  (214,655)           |
| Cancelled                          |  (61,626)  |   | $5.24                                 |   |  -    |
| Outstanding at January 1, 2011     |  1,440,549 |   | $4.54                                 |   |                      |
|                               |            |   |                                  |   |                      |
|                               |            |   | WEIGHTED AVERAGEGRANT DATE FAIR VALUE |   |                      |
| Non-Vested Equity Shares:          |            |   |                                  |   |                      |
| Outstanding at January 2, 2010     |  341,450   |   | $9.89                                 |   |  -    |
| Granted                            |  725,000   |   | $4.28                                 |   |  (725,000)           |
| Vested                             |  (146,331) |   | $9.80                                 |   |  -    |
| Cancelled                          |  (104,214) |   | $9.95                                 |   |  104,214             |
| Outstanding at January 1, 2011     |  815,905   |   | $4.91                                 |   |                      |
|                               |            |   |                                  |   |                      |
| Director Retainers                 |  31,671    |   | $4.83                                 |   |  (31,671)            |
|                               |            |   |                                  |   |                      |
| Shares reserved at January 1, 2011 |            |   |                                  |   |  1,528,364           |

----

| (THOUSANDS OF  DOLLARS) |   | 2010         |   | 2009           |   | 2008         |
|-----------------------------------|--------|--------------|--------|----------------|--------|--------------|
| U.S.                              |   |  $2,410 |   |  $(2,901) |   |  $(767) |
| Non-U.S.                          |   |  5,694  |   |  3,271    |   |  3,536  |
|                              |   |  $8,104 |   |  $370     |   |  $2,769 |

| (THOUSANDS OF  DOLLARS) |   | 2010         |   | 2009           |   | 2008         |
|-----------------------------------|--------|--------------|--------|----------------|--------|--------------|
| Currently Payable (Receivable):   |   |         |   |           |   |         |
| Federal                           |   |  $1,233 |   |  $(879)   |   |  $(767) |
| State                             |   |  214    |   |  (182)    |   |  334    |
| Foreign                           |   |  1,094  |   |  1,015    |   |  897    |
|                              |   |  2,541  |   |  (46)     |   |  464    |
| Deferred:                         |   |         |   |           |   |         |
| Federal                           |   |  (708)  |   |  (1,403)  |   |  1,732  |
| State                             |   |  -      |   |  29       |   |  (9)    |
| Foreign                           |   |  (102)  |   |  (65)     |   |  88     |
|                              |   |  (810)  |   |  (1,439)  |   |  1,811  |
| Total                             |   |  $1,731 |   |  $(1,485) |   |  $2,275 |

| (THOUSANDS OF  DOLLARS)                  |   | 2010          |   | 2009           |   | 2008         |
|----------------------------------------------------|--------|---------------|--------|----------------|--------|--------------|
| Statutory Federal income tax provision             |   |  $2,836  |   |  $130     |   |  $969   |
| State income tax expense, less Federal tax benefit |   |  134     |   |  (118)    |   |  217    |
| Foreign tax rate differential                      |   |  (1,001) |   |  (298)    |   |  4      |
| Goodwill Impairment                                |   |  -       |   |  -        |   |  1,380  |
| Adjustment related to uncertain tax benefits       |   |  (223)   |   |  (367)    |   |  (283)  |
| Settlement of items subject to audit               |   |  -       |   |  (818)    |   |  -      |
| Miscellaneous                                      |   |  (15)    |   |  (14)     |   |  (12)   |
| Income Tax Provision (Benefit)                     |   |  $1,731  |   |  $(1,485) |   |  $2,275 |

| (THOUSANDS OF  DOLLARS)                     |   | 2010          |   | 2009          |
|-------------------------------------------------------|--------|---------------|--------|---------------|
| Current Deferred Tax Assets:                          |   |          |   |          |
| Additional costs inventoried for tax purposes and     |   |          |   |          |
| inventory adjustments not deductible for tax purposes |   |  $3,726  |   |  $2,658  |
| Excess benefit plan                                   |   |  889     |   |  825     |
| Accrued pension costs                                 |   |  668     |   |  490     |
| Other                                                 |   |  1,466   |   |  2,265   |
|                                                  |   |  6,749   |   |  6,238   |
| Less Valuation Allowance                              |   |  (1,159) |   |  (1,146) |
| Current Deferred Tax Assets                           |   |  $5,590  |   |  $5,092  |

----

|                                              |   | 2010          |   | 2009          |
|---------------------------------------------------|--------|---------------|--------|---------------|
| Long-Term Deferred Tax Assets and Liabilities:    |   |          |   |          |
| Assets:                                           |   |          |   |          |
| Intangible assets                                 |   |  $682    |   |  $1,094  |
| Accrued warranty costs                            |   |  773     |   |  755     |
| Foreign tax credit carryforward                   |   |  1,682   |   |  2,054   |
| Net operating loss carryforward                   |   |  2,665   |   |  3,020   |
| Accrued pension costs                             |   |  6,427   |   |  5,486   |
| Deferred gain on sale of real estate              |   |  1,329   |   |  1,512   |
| Property, plant and equipment, principally due to |   |          |   |          |
| differences in depreciation                       |   |  -       |   |  384     |
| Other                                             |   |  1,584   |   |  1,032   |
|                                              |   |  15,142  |   |  15,337  |
| Less Valuation Allowance                          |   |  (3,624) |   |  (3,559) |
| Long-Term Deferred Tax Assets                     |   |  $11,518 |   |  $11,778 |
| Liabilities:                                      |   |          |   |          |
| Property, plant and equipment, principally due to |   |          |   |          |
| differences in depreciation                       |   |  (200)   |   |  -       |
| Long-Term Deferred Tax Liabilities                |   |  (200)   |   |  -       |
| Net Long-Term Deferred Tax Asset                  |   |  $11,318 |   |  $11,778 |
| Net Deferred Tax Asset                            |   |  $16,908 |   |  $16,870 |

| (THOUSANDS OF  DOLLARS)               |   | 2010        |   | 2009         |   | 2008         |
|-------------------------------------------------|--------|-------------|--------|--------------|--------|--------------|
| Beginning of Year                               |   |  $586  |   |  $1,848 |   |  $2,063 |
| Gross decreases - tax positions in prior period |   |  -     |   |  (722)  |   |  (18)   |
| Gross increases - current period tax positions  |   |  92    |   |  98     |   |  9      |
| Lapse of statute limitations                    |   |  (302) |   |  (638)  |   |  (206)  |
| End of Year                                     |   |  $376  |   |  $586   |   |  $1,848 |

----

| (THOUSANDS OF DOLLARS) | CROSSACCESSORYDIVISION             | CROSSOPTICALGROUP   | TOTAL  |
|------------------------|------------------------------------|---------------------|--------|
| 2010:                  |                               |                |   |   |   |   |
|                   | Revenues from external customers   | $  97,776 |   | $  60,536 |   | $158,312 |   |
|                   | Depreciation and amortization      | 4,780               |   | 1,835 |   | 6,615 |   |
|                   | Operating income                   | 1,071               |   | 8,253 |   | 9,324 |   |
|                   | Segment assets                     | 96,472              |   | 48,154 |   | 144,626 |   |
|                   | Goodwill                           | -                   |   | 15,279 |   | 15,279 |   |
|                   | Expenditures for long-lived assets | 3,734               |   | 1,085 |   | 4,819 |   |
|                   |                               |                |   |   |   |   |
| 2009:                  |                               |                |   |   |   |   |
|                   | Revenues from external customers   | $  90,892 |   | $  50,872 |   | $141,764 |   |
|                   | Depreciation and amortization      | 4,374               |   | 1,499 |   | 5,873 |   |
|                   | Operating (loss) income            | (4,756              | )      | 6,056 |   | 1,300 |   |
|                   | Restructuring charges              | 1,860               |   | - |   | 1,860 |   |
|                   | Segment assets                     | 94,358              |   | 44,061 |   | 138,419 |   |
|                   | Goodwill                           | -                   |   | 15,279 |   | 15,279 |   |
|                   | Expenditures for long-lived assets | 4,181               |   | 1,737 |   | 5,918 |   |

| 2008:  |                               |     |   |     |   |     |
|--------|------------------------------------|----------|--------|----------|--------|----------|
|   | Revenues from external customers   | $111,455 |   | $ 48,691 |   | $160,146 |   |
|   | Depreciation and amortization      | 4,610    |   | 1,171    |   | 5,781    |   |
|   | Operating (loss) income            | (4,328   | )      | 7,879    |   | 3,551    |   |
|   | Restructuring charges              | 2,526    |   | -        |   | 2,526    |   |
|   | Goodwill impairment charge         | 3,944    |   | -        |   | 3,944    |   |
|   | Segment assets                     | 99,836   |   | 44,123   |   | 143,959  |   |
|   | Goodwill                           | -        |   | 14,526   |   | 14,526   |   |
|   | Expenditures for long-lived assets | 3,922    |   | 19,604   |   | 23,526   |   |

----

| (THOUSANDS OF DOLLARS)                                                   | 2010                           | 2009     | 2008                           |
|--------------------------------------------------------------------------|--------------------------------|----------|--------------------------------|
| NET SALES:                                                               |                           |     |                           |   |   |   |   |
|                                                                     | United States                  |     | $  90,322            |   | $  80,891 |   | $  85,794 |   |
|                                                                     | Europe, Middle East and Africa |     | 34,631                         |   | 33,238 |   | 43,902 |   |
|                                                                     | Asia Pacific                   |     | 22,438                         |   | 18,906 |   | 20,609 |   |
|                                                                     | International Americas         |     |     10,921 |   |       8,729 |   |       9,841 |   |
|                                                                     | Total Consolidated Net Sales   | $158,312 |                           | $141,764 |   | $160,146 |   |
| Revenues are attributed to countries based on the location of customers. |

| LONG-LIVED ASSETS: |                                 |                |                                      |                |                                      |                |                                      |
|--------------------|--------------------------------------|---------------------|-------------------------------------------|---------------------|-------------------------------------------|---------------------|-------------------------------------------|
|               | United States                        |                | $  31,786                       |                | $  32,451                       |                | $  32,305                       |   |
|               | Foreign countries                    |                |       8,033 |                |       9,165 |                |       8,958 |   |
|               | Total Consolidated Long-Lived Assets | $  39,819 |                                      | $  41,616 |                                      | $  41,263 |                                      |

| (THOUSANDS OF DOLLARS) | 2011    | 2012   | 2013    | 2014   | 2015    | Thereafter | Total   |
|------------------------|---------|--------|---------|--------|---------|------------|---------|
|                   | $ 3,114 |   | $ 2,724 |   | $ 2,689 |       | $ 2,595 |   | $ 2,502 |   | $3,638 |   | $17,262 |   |

----

| Level 1 | Unadjusted quoted prices in active markets for identical assets and liabilities.                                                                                                                                |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | Observable inputs other than those included in Level 1. For example, quoted prices for similar assetsor liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. |
| Level 3 | Unobservable inputs reflecting management's own assumptions about the inputs used in pricing theasset or liability.                                                                                             |

| (THOUSANDS OF DOLLARS)     | JANUARY 1, 2011                |                                                          | JANUARY 2, 2010                  |
|----------------------------|--------------------------------|---------------------------------------------------------------|----------------------------------|
|                       | LEVEL 1                        | LEVEL 2                                                       | LEVEL 3                          | TOTAL |   | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL |
| Assets:                    |                           |                                                          |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       | Money market funds (A)         | $7,003                                                        |                             | $     - |   | $     - |   | $ 7,003 |   | $1,427 |   | $     - |   | $     - |   | $1,427 |   |
|                       | Short-term investments (B)     | 2,514                                                         |                             | - |   | - |   | 2,514 |   | 7,217 |   | - |   | - |   | 7,217 |   |
|                       | Derivatives not designated as  |                                                          |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       | Hedging instruments:           |                                                          |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       | Foreign exchange contracts (C) |           - |                             |        - |   |        - |   |           - |   |           - |   |   614 |   |        - |   |      614 |   |
| Total Assets at Fair Value | $9,517                         |                                                          | $     - |   | $     - |   | $9,517 |   | $8,644 |   | $614 |   | $     - |   | $9,258 |   |

| (THOUSANDS OF DOLLARS)          | JANUARY 1, 2011                                    |                                                          | JANUARY 2, 2010 |
|---------------------------------|----------------------------------------------------|---------------------------------------------------------------|-----------------|
|                            | LEVEL 1                                            | LEVEL 2                                                       | LEVEL 3         | TOTAL |   | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL |
| Liabilities                     |                                               |                                                          |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            | Derivatives designated as                          |                                                          |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            | Hedging instruments:                               |                                                          |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            | Interest rate swaps (D)                            | $        -            |            | $ 184 |   | $     - |   | $   184 |   | $        - |   | $541 |   | $     - |   | $   541 |   |
|                            | Derivatives not designated as                      |                                                          |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            | Hedging instruments:                               |                                                          |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            | Foreign exchange contracts (C)                     |           - |            |     154 |   |        - |   |      154 |   |           - |   |   111 |   |        - |   |      111 |   |
| Total Liabilities at Fair Value | $        - |                                                          | $ 338           |   | $     - |   | $   338 |   | $        - |   | $652 |   | $     - |   | $   652 |   |

| (A) | Value based on quoted market prices of identical instruments, fair value included in cash and cash equivalents                                                                                                          |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Value based on quoted market prices of identical instruments                                                                                                                                                            |
| (C) | Value based on the present value of the forward rates less the contract rate multiplied by the notional amount, fair value included in other current assets or accounts payable, accrued expenses and other liabilities |
| (D) | Value derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, fair value included in accounts payable, accrued expenses and other liabilities                      |

----

| (THOUSANDS OF DOLLARS)              | YEARS ENDED                                                     |
|-------------------------------------|-----------------------------------------------------------------|
|                                | JANUARY 1, 2011                                                 | JANUARY 2, 2010 |
| Fair Value / Non-designated Hedges: |                                                            |   |
|                                | Foreign exchange contracts (A)                                  | $ (154 | ) | $ 503 |   |
| Cash Flow Hedges:                   |                                                            |   |   |   |
|                                | Effective portion recognized in other comprehensive income:     |   |   |   |   |
|                                | Interest rate swaps                                             | $  870 |   | $  748 |   |
|                                | Effective portion reclassified from other comprehensive income: |   |   |   |   |
|                                | Interest rate swaps (B)                                         | $ (513 | ) | $ (501 | ) |
|                                |                                                            |
| (A)                                 | Included in selling, general and administrative expenses        |
| (B)                                 | Included in interest expense                                    |

| (THOUSANDS, EXCEPT PER SHARE DATA)           |
|----------------------------------------------|
| 2010:                                        | APRIL 3 | JULY 3 | OCTOBER 2 | JANUARY 1 |
| Net Sales                                    | $34,373 |   | $41,748 |   | $38,156 |   | $44,035 |   |
| Gross Profit                                 | 19,519 |   | 23,905  |   | 20,746 |   | 24,306 |   |
| Net Income                                   | 174 |   | 2,714 |   | 1,630 |   | 1,855 |   |
|                                         |   |   |   |   |
| Net Income Per Share:                        |   |   |   |   |   |   |   |   |
| Basic                                        | $0.01 |   | $0.20 |   | $0.13 |   | $0.16 |   |
| Diluted                                      | $0.01 |   | $0.20 |   | $0.13 |   | $0.15 |   |
|                                         |   |   |   |   |
| Weighted Average Shares Outstanding:         |   |   |   |   |
|                                         | Denominator for Basic Net Income Per Share | 13,269 |   | 13,339 |   | 12,124 |   | 11,957 |   |
| Effect of Dilutive Securities:               |   |   |   |   |
|                                         | Common stock equivalents |        86 |   |      119 |   |       400 |   |       645 |   |
| Denominator for Diluted Net Income Per Share | 13,355 |   | 13,458 |   | 12,524 |   | 12,602 |   |

----

| (THOUSANDS, EXCEPT PER SHARE DATA)                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2009:                                                                                                                                                     | APRIL 4 | JULY 4 | OCTOBER 3 | JANUARY 2 |
| Net Sales                                                                                                                                                 | $30,840 |   | $37,306 |   | $34,129 |   | $39,489 |   |
| Gross Profit                                                                                                                                              | 16,756 |   | 20,402  |   | 17,945 |   | 21,615 |   |
| Net (Loss) Income                                                                                                                                         | (949 | ) | 635 |   | 926 |   | 1,243 |   |
|                                                                                                                                                      |   |   |   |   |
| Net (Loss) Income Per Share:                                                                                                                              |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                     | $(0.06 | ) | $0.04 |   | $0.06 |   | $0.09 |   |
| Diluted                                                                                                                                                   | $(0.06 | ) | $0.04 |   | $0.06 |   | $0.09 |   |
|                                                                                                                                                      |   |   |   |   |
| Weighted Average Shares Outstanding:                                                                                                                      |   |   |   |   |
|                                                                                                                                                      | Denominator for Basic Net Income Per Share | 14,847 |   | 14,581 |   | 14,578 |   | 14,400 |   |
| Effect of Dilutive Securities:                                                                                                                            |   |   |   |   |
|                                                                                                                                                      | Common stock equivalents |           - | (A) |        12 |   |        68 |   |        55 |   |
| Denominator for Diluted Net Income Per Share                                                                                                              | 14,847 |   | 14,593 |   | 14,646 |   | 14,455 |   |
|                                                                                                                                                      |
| (A) 178 incremental shares related to options are not included due to the net loss in the quarter since the effect of such shares would be anti-dilutive. |

----

| Item 9 | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|--------|--------------------------------------------------------------------------------------|

| Item 9A | CONTROLS AND PROCEDURES |
|---------|-------------------------|

| A | Evaluation of Disclosure Controls and Procedures |
|---|--------------------------------------------------|

| B | Management's Report on Internal Control over Financial Reporting |
|---|------------------------------------------------------------------|

| C | Changes in Internal Control over Financial Reporting |
|---|------------------------------------------------------|

| Item 9B | OTHER INFORMATION |
|---------|-------------------|

----

| Item 10 | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|---------|--------------------------------------------------------|

| Item 11 | EXECUTIVE COMPENSATION |
|---------|------------------------|

| Item 12 | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|---------|------------------------------------------------------------------------------------------------|

|                          | (A)                                                                                     | (B)                                                                                         | (C)                                                                                                                                    |
|-------------------------------|-----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| PLAN CATEGORY:                | NUMBER OF SECURITIESTO BE ISSUED UPONEXERCISE OF OUTSTANDINGOPTIONS, WARRANTSAND RIGHTS | WEIGHTED AVERAGEEXERCISE PRICE OFOUTSTANDING OPTIONS,WARRANTS AND RIGHTS                    | NUMBER OF SECURITIESREMAINING AVAILABLE FORFUTURE ISSUANCE UNDEREQUITY COMPENSATION PLANS(EXCLUDING SECURITIESREFLECTED IN COLUMN (A)) |
| Equity compensation plans     |                                                                                    |                                                                                        |                                                                                                                                   |   |   |
|                          | approved by security holders                                                            | 1,440,549                                                                                   |                                                                                                                                   | $4.54 | 87,815 |   |
| Equity compensation plans not |                                                                                    |
|                          | approved by security holders                                                            |                - |                                                                                                                                   | - |            - |   |
| Total                         | 1,440,549                                                                               |                                                                                        | $4.54                                                                                                                                  | 87,815 |   |

| Item 13 | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|---------|---------------------------------------------------------------------------|

| Item 14 | PRINCIPAL ACCOUNTING FEES AND SERVICES |
|---------|----------------------------------------|

----

| Item 15 | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
|---------|-----------------------------------------|

| A      | (1) and                 | The following consolidated financial statements of A.T. Cross Company and subsidiaries are          |
|--------|-------------------------|-----------------------------------------------------------------------------------------------------|
|   | (2)                     | incorporated by reference to Item 8 of this Annual Report on Form 10-K:                             |
|   |                    |                                                                                                |
|   |                    | Report of Independent Registered Public Accounting Firm                                             |
|   |                    |                                                                                                |
|   |                    | Consolidated Balance Sheets as of January 1, 2011 and January 2, 2010                               |
|   |                    |                                                                                                |
|   |                    | Consolidated Statements of Income for the Years Ended January 1, 2011,                              |
|   |                    |                                                                                                | January 2, 2010 and January 3, 2009 |
|   |                    |                                                                                                |
|   |                    | Consolidated Statements of Comprehensive Income (Loss) for the Years Ended                          |
|   |                    |                                                                                                | January 1, 2011, January 2, 2010 and January 3, 2009 |
|   |                    |                                                                                                |
|   |                    | Consolidated Statements of Changes in Shareholders' Equity for the Years Ended                      |
|   |                    |                                                                                                | January 1, 2011, January 2, 2010 and January 3, 2009 |
|   |                    |                                                                                                |
|   |                    | Consolidated Statements of Cash Flows for the Years Ended January 1, 2011,                          |
|   |                    |                                                                                                | January 2, 2010 and January 3, 2009 |
|   |                    |                                                                                                |
|   |                    | Notes to Consolidated Financial Statements                                                          |
|   |                    |
|   | (3) Listing of Exhibits |
|   |                    |                                                                                                |   |   |
|   | EXHIBIT                 |                                                                                                |   |   |
|   | NUMBER                  | DESCRIPTION                                                                                         |   |
|   |                    |                                                                                                |
|   | (3.1)                   | Restated Articles of Incorporation and By-laws (incorporated by reference to Exhibit (3) to the     |
|   |                    | registrant's report on Form 10-K for the year ended December 31, 1980)                              |
|   |                    |                                                                                                |
|   | (3.2)                   | Amendment to Restated Articles of Incorporation (incorporated by reference to Exhibit (3) to the    |
|   |                    | registrant's report on Form 10-K for the year ended December 31, 1994)                              |
|   |                    |                                                                                                |
|   | (3.3)                   | Amendment to By-laws adopted December 2, 1988 (incorporated by reference to Exhibit (3) to the      |
|   |                    | registrant's report on Form 10-K for the year ended December 31, 1989)                              |
|   |                    |                                                                                                |
|   | (3.4)                   | Amendment to By-laws adopted February 6, 1992 (incorporated by reference to Exhibit (3) to the      |
|   |                    | registrant's report on Form 10-K for the year ended December 31, 1991)                              |
|   |                    |                                                                                                |
|   | (10.1)                  | A.T. Cross Company Unfunded Excess Benefit Plan (as amended) (incorporated by reference to          |
|   |                    | Exhibit (10.6) to the registrant's report on Form 10-K for the year ended December 31, 1994) *      |
|   |                    |                                                                                                |
|   | (10.2)                  | A.T. Cross Company Executive Life Insurance Program (incorporated by reference to Exhibit (10.8) to |
|   |                    | the Registrant's report on Form 10-K for the year ended December 31, 1997) *                        |
|   |                    |                                                                                                |
|   | (10.3)                  | A.T. Cross Company Deferred Compensation Plan for Employee Officers and Directors (incorporated     |
|   |                    | by Reference to Exhibit (10.4) to the registrant's report on Form 10-K for the year ended           |
|   |                    | December 28, 2002) *                                                                                |
|   |                    |                                                                                                |
|   | (10.4)                  | A.T. Cross Company Deferred Compensation Plan for Non-Employee Directors (incorporated by           |
|   |                    | reference to Exhibit (10.5) to the registrant's report on Form 10-K for the year ended              |
|   |                    | December 28, 2002) *                                                                                |
|   |                    |                                                                                                |
|   | (10.5)                  | A.T. Cross Company Omnibus Incentive Plan (incorporated by reference to Exhibit (10) to the         |
|   |                    | registrant's report on Form 10-Q for the quarterly period ended July 3, 2004) *                     |
|   |                    |                                                                                                |

----

|   | (10.6)                                                             | Executive Employment Contract - Charles S. Mellen dated November 21, 2004 (incorporated by                |
|--------|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
|   |                                                               | reference to Exhibit (10.9) to the registrant's report on Form 10-K for the year ended January 1, 2005) * |
|   |                                                               |                                                                                                      |
|   | (10.7)                                                             | Executive Employment Contract - Kevin F. Mahoney dated January 11, 2005 (incorporated by reference        |
|   |                                                               | to Exhibit (10.10) to the registrant's report on Form 10-K for the year ended January 1, 2005) *          |
|   |                                                               |                                                                                                      |
|   | (10.8)                                                             | A.T. Cross Company Long Term Incentive Plan and Severance Program for senior management                   |
|   |                                                               | (incorporated by reference to the registrant's report on Form 8-K filed October 25, 2005) *               |
|   |                                                               |                                                                                                      |
|   | (10.9)                                                             | Credit Agreement and first amendment with Bank of America, N.A., (incorporated by reference to            |
|   |                                                               | Exhibit (10) to the registrant's report on Form 10-Q for the quarterly period ended October 3, 2009)      |
|   |                                                               |                                                                                                      |
|   | (10.10)                                                            | Second amendment to Credit Agreement with Bank of America, N.A. (incorporated by reference to             |
|   |                                                               | Exhibit (10) to the registrant's report on Form 10-K for the year ended January 3, 2009)                  |
|   |                                                               |                                                                                                      |
|   | (10.11)                                                            | Third amendment to Credit Agreement with Bank of America, N.A. (incorporated by reference to              |
|   |                                                               | Exhibit (10) to the registrant's report on Form 10-K for the year ended January 2, 2010)                  |
|   |                                                               |                                                                                                      |
|   | (10.12)                                                            | Amended and Restated Credit Agreement with Bank of America, N.A. (incorporated by reference to            |
|   |                                                               | Exhibit (10) to the registrant’s report on Form 10-Q for the quarterly period ended July 3, 2010)   |
|   |                                                               |                                                                                                      |
|   | (11)                                                               | Statement Re: Computation of Net (Loss) Income per Share - (incorporated by reference to the              |
|   |                                                               | “Consolidated Statements of Income” financial statement in Item 8 of this Annual Report on    |
|   |                                                               | Form 10-K)                                                                                                |
|   |                                                               |                                                                                                      |
|   | (21)                                                               | A.T. Cross Company Subsidiaries, Branches and Divisions                                                   |
|   |                                                               |                                                                                                      |
|   | (23)                                                               | Consent of Independent Registered Public Accounting Firm                                                  |
|   |                                                               |                                                                                                      |
|   | (31.1)                                                             | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                  |
|   |                                                               |                                                                                                      |
|   | (31.2)                                                             | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                  |
|   |                                                               |                                                                                                      |
|   | (32)                                                               | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                   |
|   |                                                               |
|   | *  Management contract, compensatory plan or arrangement |
|   |                                                               |
| B      | Exhibits - See Item A (3) above                                    |

----

| A.T. CROSS COMPANY(registrant)  |
|---------------------------------|
| By /s/                          | RUSSELL A. BOSS(Russell A. Boss)Chairman  |
| Date:  March 15, 2011 |

| SIGNATURE                                       | TITLE                                             | DATE           |
|-------------------------------------------------|---------------------------------------------------|----------------|
| /s/RUSSELL A. BOSS(Russell A. Boss)             | Chairman & Director                           | March 15, 2011 |
|                                            |                                              |           |
| /s/DAVID G. WHALEN(David G. Whalen)             | President & Director(Chief Executive Officer) | March 15, 2011 |
|                                            |                                              |           |
| /s/KEVIN F. MAHONEY(Kevin F. Mahoney)           | Vice President(Chief Financial Officer)           | March 15, 2011 |
|                                            |                                              |           |
| /s/GARY S. SIMPSON(Gary S. Simpson)             | Corporate Controller(Chief Accounting Officer)    | March 15, 2011 |
|                                            |                                              |           |
| _____________________(Bernard V. Buonanno, Jr.) | Director                                          |           |
|                                            |                                              |           |
| /s/EDWARD J. COONEY(Edward J. Cooney)           | Director                                          | March 15, 2011 |
|                                            |                                              |           |
| /s/DWAIN L. HAHS(Dwain L. Hahs)                 | Director                                          | March 15, 2011 |
|                                            |                                              |           |
| ____________________(Harlan M. Kent)            | Director                                          |           |
|                                            |                                              |           |
| /s/ANDREW J. PARSONS(Andrew J. Parsons)         | Director                                          | March 15, 2011 |

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