Note 12 - Stock Options

12 Months Ended

Sep. 24, 2011

Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments [Table Text Block]

NOTE L – STOCK OPTIONS

We have, subject to shareholder approval in February 2012, a Stock Option Plan (the “Plan”). Pursuant to the Plan, stock options may be granted to officers and our key employees which qualify as incentive stock options as well as stock options which are nonqualified. The exercise price of incentive stock options is at least the fair market value of the common stock on the date of grant. The exercise price for nonqualified options is determined by a committee of the Board of Directors. The options are generally exercisable after three years and expire no later than ten years from date of grant. There are 800,000 shares reserved under the Plan under which no options have yet to been issued. There are options that were issued under an option plan that has since expired that are still outstanding.

We have an Employee Stock Purchase Plan (“ESPP”) whereby employees purchase stock by making contributions through payroll deductions for six month periods. The purchase price of the stock is 85% of the lower of the market price of the stock at the beginning of the six-month period or the end of the six-month period. In fiscal years 2011, 2010 and 2009 employees purchased 19,708, 22,143 and 25,803 shares at average purchase prices of $39.04, $32.70 and $26.63, respectively. ESPP expense of $203,000, $184,000 and, $237,000 was recognized for fiscal years 2011, 2010 and 2009, respectively.

A summary of the status of our stock option plans as of fiscal years 2011, 2010 and 2009 and the changes during the years ended on those dates is represented below:

	Incentive Stock Options					Nonqualified Stock Options
				Weighted-					Weighted-
	Stock			Average		Stock			Average
	Options			Exercise		Options			Exercise
	Outstanding			Price		Outstanding			Price

Balance, September 28, 2008		613,832		$	24.29		397,354		$	18.00
Granted		4,500			32.13		-			-
Exercised		(169,388	)		18.73		(71,000	)		10.70
Cancelled		(20,000	)		26.79		(20,000	)		20.02

Balance, September 26, 2009		428,944			26.45		306,354			19.55
Granted		101,330			36.77		20,000			41.75
Exercised		(92,760	)		16.40		(72,354	)		10.12
Cancelled		(19,505	)		33.47		(10,000	)		38.81

Balance, September 25, 2010		418,009			30.86		244,000			23.38
Granted		101,200			50.93		45,315			49.57
Exercised		(186,039	)		23.52		(62,000	)		10.30
Cancelled		(10,050	)		36.77		-			-

Balance, September 24, 2011		323,120		$	41.18		227,315		$	32.17
Exercisable Options
September 24, 2011		126,436					142,000

The weighted-average fair value of incentive options granted during fiscal years ended September 24, 2011, September 25, 2010 and September 26, 2009 was $12.52, $9.12 and $7.13, respectively. The weighted-average fair value of non-qualified stock options granted during the fiscal years ended September 24, 2011 and September 25, 2010 was $14.95 and $17.33, respectively. There were no non-qualified options granted during the fiscal year ended September 26, 2009. The total intrinsic value of stock options exercised was $7.0 million, $5.1 million and $5.4 million in fiscal years 2011, 2010 and 2009, respectively.

The total cash received from these option exercises was $3.4 million, $1.2 million and $2.3 million in fiscal years 2011, 2010 and 2009, respectively; and the actual tax benefit realized from the tax deductions from these option exercises was $1.2 million, $1.2 million and $ 1.0 million in fiscal years 2011, 2010 and 2009, respectively.

The following table summarizes information about incentive stock options outstanding at September 24, 2011:

	Options Outstanding					Options Exercisable
	Number		Weighted-			Number
	Outstanding		Average	Weighted-		Exercisable		Weighted-
	at		Remaining	Average		at		Average
Range of	September 24,		Contractual	Exercise		September 24,		Exercise
Exercise Prices	2011		Life	Price		2011		Price
$27.45-$41.16		166,170	2.3 years	$	35.15		69,936	$	33.25
$41.50-$51.14		156,950	3.2 years	$	47.57		56,500	$	41.60

		323,120					126,436

The following table summarizes information about nonqualified stock options outstanding at September 24, 2011:

	Options Outstanding					Options Exercisable
	Number		Weighted-			Number
	Outstanding		Average	Weighted-		Exercisable		Weighted-
	at		Remaining	Average		at		Average
Range of	September 24,		Contractual	Exercise		September 24,		Exercise
Exercise Prices	2011		Life	Price		2011		Price
$19.77-$20.43		82,000	1.2 years	$	19.93		82,000	$	19.93
$29.78-$41.75		100,000	6.2 years	$	34.32		60,000	$	31.90
$47.59-$51.14		45,315	7.1 years	$	49.57		-	$	-
		227,315					142,000

- Definition

Tabular disclosure of an equity-based arrangement (such as stock or unit options and stock or unit awards) with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain equity-based awards at future dates, sometimes including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares or units issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

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