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Note 5

9 Months Ended

Jun. 26, 2021

Share-based Payment Arrangement [Text Block]

Note 5

At June 26, 2021, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows:

	Three months ended				Nine months ended
	June 26,		June 27,		June 26,		June 27,
	2021		2020		2021		2020
	(in thousands)
Stock Options	$	512	$	890	$	1,505	$	2,267
Stock purchase plan		171		57		513		328
Stock issued to outside director		11		17		33		50
Restricted stock issued to an employee		23		-		70		-
Total share-based compensation	$	717	$	964	$	2,121	$	2,645

The above compensation is net of tax benefits	$	265	$	70	$	1,131	$	822

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 2021 nine months: expected volatility of 25.8%; risk-free interest rate of 0.8%; dividend rate of 1.4% and expected lives of 51 months.

During the fiscal year 2021 nine-month period, the Company granted 138,432 stock options. The weighted-average grant date fair value of these options was $31.20.

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.

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.