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Note 5 - Share-based Compensation and Post-retirement Benefits

9 Months Ended

Jun. 29, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 5

Share-Based Compensation

At June 29, 2024, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows:

		Three months ended								Nine months ended
		June 29,				June 24,				June 29,				June 24,
		2024				2023				2024				2023
		(in thousands)								(in thousands)

Stock options		$	256			$	449			$	983			$	1,628
Stock purchase plan			131				118				369				542
Stock issued to outside directors			32				39				106				66
Service share units issued to employees			468				295				1,294				669
Performance share units issued to employees			377				177				1,024				420
Total share-based compensation		$	1,264			$	1,078			$	3,776			$	3,325

The above compensation is net of tax benefits		$	369			$	305			$	1,065			$	610

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

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.

The Company did not grant any stock options during the nine months ended June 29, 2024 or during the nine months ended June 24, 2023.

During the three and nine months ended June 29, 2024, the Company issued 14,441 and 25,987 service share units (“RSU”)’s, respectively. During the three and nine months ended June 24, 2023, the Company issued 11,964 and 21,864 RSU’s, respectively. 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.

During the three and nine months ended June 29, 2024, the Company issued 2,968 and 14,506 performance share units (“PSU”)’s, respectively. During the three and nine months ended June 24, 2023, the Company issued 2,169 and 21,260 PSU’s, respectively. 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.