Note L - Stock Options

12 Months Ended

Sep. 24, 2016

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 174,875 shares remain unissued as of September 24, 2016. 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 2016, 2015 and 2014 employees purchased 13,747, 13,648 and 15,650 shares at average purchase prices of $96.00, $86.01 and $70.40, respectively. ESPP expense of $305,000, $328,000 and $329,000 was recognized for fiscal years 2016, 2015 and 2014, respectively.

A summary of the status of our stock option plans as of fiscal years 2016, 2015 and 2014 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 29, 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
Granted		114,488			100.94		55,152			106.96
Exercised		(70,792	)		47.30		(6,590	)		51.14
Canceled		(6,989	)		84.13		-			-


Balance, September 26, 2015		332,352			77.04		297,941			63.34
Granted		120,450			108.69		58,720			112.35
Exercised		(86,223	)		53.67		(44,777	)		42.53
Canceled		(10,792	)		97.07		-			-

Balance, September 24, 2016		355,787		$	92.81		311,884		$	75.56
Exercisable Options
September 24, 2016		54,640		$	57.98		139,880		$	43.52

The weighted-average fair value of incentive options granted during fiscal years ended September 24, 2016, September 26, 2015 and September 27, 2014 was $13.94, $15.27 and $15.24, respectively. The weighted-average fair value of non-qualified stock options granted during the fiscal years ended September 24, 2016, September 26, 2015 and September 27, 2014 was $19.95, $21.90 and $17.34, respectively. The total intrinsic value of stock options exercised was $8.4 million, $4.8 million and $3.4 million in fiscal years 2016, 2015 and 2014, respectively.

The total cash received from these option exercises was $5.3 million, $3.1 million and $1.5 million in fiscal years 2016, 2015 and 2014, respectively; and the actual tax benefit realized from the tax deductions from these option exercises was $1.6 million, $874,000 and $1.0 million in fiscal years 2016, 2015 and 2014, respectively.

The following table summarizes information about incentive stock options outstanding as of September 24, 2016:

	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	2016		Life		Price		2016		Price
$57.15-$81.67		129,733		1.6	$	71.68		54,640	$	57.98
$89.37-$117.65		226,054		3.9		104.94		-		-
Total options		355,787		3.1		92.81		54,640		57.98

The following table summarizes information about nonqualified stock options outstanding as of September 24, 2016:

	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	2016		Life		Price		2016		Price
$31.10-$41.75		80,000		1.8	$	35.46		80,000	$	35.46
$47.59-$57.99		59,880		4.0		54.30		59,880		54.30
$80.79-$119.44		172,004		5.9		101.61		-		-
Total options		311,884		4.4		75.56		139,880		43.52

- 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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