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Note L - Stock Options

12 Months Ended

Sep. 27, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE L – STOCK OPTIONS

We have 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 were 800,000 shares reserved under the Plan; options for 504,000 shares remain unissued as of September 27, 2014. 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 2014, 2013 and 2012 employees purchased 15,650, 19,804 and 20,318 shares at average purchase prices of $70.40, $52.61 and $44.11, respectively. ESPP expense of $329,000, $363,000 and $256,000 was recognized for fiscal years 2014, 2013 and 2012, respectively.

A summary of the status of our stock option plans as of fiscal years 2014, 2013 and 2012 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 25, 2011		323,120		$	41.18		227,315		$	32.17
Granted		118,210			57.87		45,932			57.70
Exercised		(71,350	)		39.03		(62,000	)		19.77
Canceled		(14,300	)		41.13		-			-

Balance, September 29, 2012		355,680			47.16		211,247			41.36
Granted		1,600			63.13		20,000			80.79
Exercised		(84,628	)		34.58		-			-
Canceled		(12,800	)		51.01		-			-

Balance, September 28, 2013		259,852			51.17		231,247			44.77
Granted		83,440			82.07		38,132			88.26
Exercised		(39,097	)		42.42		(20,000	)		20.43
Canceled		(8,550	)		58.68		-			-



Balance, September 27, 2014		295,645		$	60.83		249,379		$	53.38
Exercisable Options September 27, 2014		105,145		$	47.22		145,315		$	39.08

The weighted-average fair value of incentive options granted during fiscal years ended September 27, 2014, September 28, 2013 and September 29, 2012 was $15.24, $13.76 and $13.43, respectively. The weighted-average fair value of non-qualified stock options granted during the fiscal years ended September 27, 2014, September 28, 2013 and September 29, 2012 was $17.34, $28.30 and $16.32, respectively. The total intrinsic value of stock options exercised was $3.4 million, $2.7 million and $3.2 million in fiscal years 2014, 2013 and 2012, respectively.

The total cash received from these option exercises was $1.5 million, $2.6 million and $2.4 million in fiscal years 2014, 2013 and 2012, respectively; and the actual tax benefit realized from the tax deductions from these option exercises was $1.0 million, $666,000 and $1.0 million in fiscal years 2014, 2013 and 2012, respectively.

The following table summarizes information about incentive stock options outstanding at September 27, 2014:

			Options Outstanding						Options Exercisable
			Number		Weighted-				Number
			Outstanding		Average		Weighted-		Exercisable		Weighted-
			at		Remaining		Average		at		Average
Range of			September 27,		Contractual		Exercise		September 27,		Exercise
Exercise Prices			2014		Life (in years)		Price		2014		Price
$36.71	-	$51.14		105,145		1.4	$	47.22		105,145	$	47.22
$57.15	-	$82.74		186,903		3.4	$	67.90		-		-
$89.37	-	$93.17		3,597		4.5	$	91.48		-		-
Total options				295,645						105,145

The following table summarizes information about nonqualified stock options outstanding at September 27, 2014:

			Options Outstanding						Options Exercisable
			Number		Weighted-				Number
			Outstanding		Average		Weighted-		Exercisable		Weighted-
			at		Remaining		Average		at		Average
Range of			September 27,		Contractual		Exercise		September 27,		Exercise
Exercise Prices			2014		Life (in years)		Price		2014		Price
$29.78	-	$41.75		100,000		3.2	$	34.32		100,000	$	34.32
$47.59	-	$57.99		91,247		4.6	$	53.67		45,315		49.57
$80.79	-	$94.24		58,132		7.8	$	85.69		-		-
Total options				249,379						145,315

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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