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Note 5

9 Months Ended

Jun. 27, 2020

Share-based Payment Arrangement [Text Block]

Note 5

At June 27, 2020, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows:

	Three months ended				Nine months ended
	June 27,		June 29,		June 27,		June 29,
	2020		2019		2020		2019

Stock Options	$	890	$	663	$	2,267	$	1,741
Stock purchase plan		57		187		328		324
Stock issued to an outside director		17		17		50		50
Total share-based compensation	$	964	$	867	$	2,645	$	2,115

The above compensation is net of tax benefits	$	70	$	254	$	822	$	937

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 2020 nine months: expected volatility of 17.4%; risk-free interest rate of 0.3%; dividend rate of 1.8% and expected lives of 51 months.

During the fiscal year 2020 nine month period, the Company granted 161,682 stock options. The weighted-average grant date fair value of these options was $14.40.

During the fiscal year 2019 nine month period, the Company granted 165,170 stock options. The weighted-average grant date fair value of these options was $26.29.

Expected volatility is based on the historical volatility of the price of our common shares over the past 51 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.