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Note 6
 9 Months Ended
Jun. 25, 2022
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 6

At June 25, 2022, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows:

 

  

Three Months Ended

  

Nine Months Ended

 
  

June 25,

  

June 26,

  

June 25,

  

June 26,

 
  

2022

  

2021

  

2022

  

2021

 
                 

Stock options

 $693  $523  $2,115  $1,538 

Stock purchase plan

  90   171   240   513 

Restricted stock issued to employees

  152   23   376   70 

Performance stock issued to employees

  83   -   204   - 

Total share-based compensation

 $1,018  $717  $2,935  $2,121 
                 

The above compensation is net of tax benefits

 $116  $265  $549  $1,131 

 

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model.

 

During the fiscal year 2022 nine-month period, the Company granted 115,700 stock options. The weighted-average grant date fair value of these options was $23.36.

 

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.

 

The Company issued 327 service share units (“RSU”)’s in the three-months ended June 25, 2022, and 9,200 RSU’s in the nine-months ended June 25, 2022. Each RSU entitles the awardee to one share of common stock upon vesting. The fair value of RSU’s was determined based upon the closing price of the Company’s common stock on the date of grant. No such RSU’s were issued in the three or nine-months ended June 26, 2021.

 

In November 2021, the Company also issued 8,868 performance share units (“PSU”)’s. Each PSU may result in the issuance of up to two shares of common stock upon vesting, dependent upon the level of achievement of the applicable Performance Goal. The fair value of the PSU’s was determined based upon the closing price of the Company’s common stock on the date of grant. Additionally, the Company applies a quarterly probability assessment in computing this non-cash compensation expense, and any change in estimate is reflected as a cumulative adjustment to expense in the quarter of the change. No such PSU’s were issued in the three-months ended June 25, 2022 or in the three or nine-months ended June 26, 2021.

 

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.