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Note 6 - Share-based Compensation
 3 Months Ended
Dec. 28, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 6

Share-Based Compensation

 

At December 28, 2024, the Company has two stock-based employee compensation plans. Pre—tax share-based compensation expense was recognized as follows:

 

   

Three months ended

  
   

December 28,

    

December 30,

  
   

2024

    

2023

  
   

(in thousands)

  
                 

Stock options

   $ 150     $ 431  

Stock purchase plan

     88       99  

Stock issued to outside directors

     43       54  

Service share units issued to employees

     595       521  

Performance share units issued to employees

     249       375  

Total share-based compensation

   $ 1,125     $ 1,480  
                 

Tax benefits

   $ 326     $ 321  

 

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 three months ended December 28, 2024, or during the three months ended December 30, 2023.

 

During the three months ended December 28, 2024, the Company issued 13,557 service share units (“RSU”)’s. Each RSU entitles the awardee to one share of common stock upon vesting. During the three months ended December 30, 2023, the Company issued 9,751 RSU’s. The fair value of the RSU’s was determined based upon the closing price of the Company’s common stock on the date of grant.

 

During the three months ended December 28, 2024, the Company also issued 13,548 performance share units (“PSU”)’s. During the three months ended December 30, 2023, the Company issued 9,743 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.