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Note 5
 6 Months Ended
Mar. 29, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 5

At March 29, 2014, the Company has three stock-based employee compensation plans. Share-based compensation was recognized as follows:


   

Three months ended

   

Six months ended

 
   

March 29, 2014

   

March 30, 2013

   

March 29, 2014

   

March 30, 2013

 
   

(in thousands, except per share amounts)

 
                                 
                                 

Stock Options

  $ 388     $ 215     $ 700     $ 390  

Stock purchase plan

    48       45       177       137  

Stock issued to outside directors

    -       12       -       24  

Restricted stock issued to an employee

    4       5       8       9  
    $ 440     $ 277     $ 885     $ 560  
                                 

Per diluted share

  $ 0.02     $ 0.01     $ 0.05     $ 0.03  
                                 

The above compensation is net of tax benefits

  $ 85     $ 132     $ 164     $ 356  

The Company anticipates that share-based compensation will not exceed $1.7 million net of tax benefits, or approximately $.09 per share for the fiscal year ending September 27, 2014.


The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2014 first six months: expected volatility of 20.6%; risk-free interest rate of 1.4%; dividend rate of .8% and expected lives of 5 years.


During the 2014 six month period, the Company granted 98,975 stock options. The weighted-average grant date fair value of these options was $15.21. During the 2013 six month period, the Company granted 1,100 stock options. The weighted-average grant date fair value of these options was $12.24.


Expected volatility is based on the historical volatility of the price of our common shares over the past 55 months for 5 year options and 10 years for 10 year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.