10STOCK-BASED COMPENSATION AND Stock Ownership Plans

The Company’s current stock ownership plans provide for issuance of options to acquire shares of Class A common stock by key executives and non-employee directors. Current plans also allow for issuance of shares of restricted stock, restricted stock units or stock appreciation rights in lieu of options.

Under the Company’s 2010 Long-Term Stock Incentive Plan and the 2012 Non-Employee Director Stock Ownership Plan there were 589,717 shares of the Company’s Class A common stock available for grant to key executives and non-employee directors at September 30, 2016. Shares issued pursuant to the exercise of stock options or grants of restricted stock are typically issued first out of treasury stock to the extent that treasury shares are available.

The Company recognized tax benefits from the exercise of stock options and the vesting of restricted stock of $112, $482 and $493 for 2016, 2015 and 2014, respectively. These amounts were recorded as increases in additional paid-in capital on the consolidated balance sheets and as cash from financing activities on the consolidated statements of cash flows.

Stock Options

All stock options have been granted at a price not less than fair market value at the date of grant and are currently exercisable. Stock options generally have a term of 10 years.

All of the Company’s stock options outstanding are fully vested, with no further compensation expense to be recorded. There were no grants of stock options in 2016, 2015 or 2014.

A summary of stock option activity related to the Company’s plans is shown below.



	Shares	Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term (Years)
Outstanding and exercisable at October 3, 2014	9,216		17.07
Exercised	(9,216)		17.07
Outstanding and exercisable at October 2, 2015	-		-	$	-	-

There were no stock options outstanding during 2016.

The intrinsic values of the stock received upon exercise of such options at their date of exercise during 2016, 2015 and 2014 were $0, $221 and $96, respectively.

The Company received cash proceeds from stock option exercises totaling $0, $118 and $78 for the years ending September 30, 2016, October 2, 2015 and October 3, 2014, respectively.

Non-Vested Stock

All shares of non-vested stock awarded by the Company have been granted at their fair market value on the date of grant and vest within five years after the grant date. The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s shares traded.

A summary of non-vested stock activity for the two year period ended September 30, 2016 related to the Company’s stock ownership plans is as follows:



		Weighted Average
	Shares	Grant Price
Non-vested stock at October 3, 2014	319,632	$	17.10
Non-vested stock grants	38,222		30.05
Non-vested stock forfeited	(25,364)		21.27
Restricted stock vested	(118,463)		12.57
Non-vested stock at October 2, 2015	214,027		21.43
Non-vested stock grants	54,850		24.16
Non-vested stock forfeited	(7,885)		18.52
Restricted stock vested	(98,520)		19.18
Non-vested stock at September 30, 2016	162,472		24.49

Non-vested stock grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of shares by tendering a portion of the vested shares back to the Company. Shares tendered back to the Company were 19,973 and 30,353 during 2016 and 2015, respectively. The fair value of restricted stock vested during 2016, 2015 and 2014 was approximately $2,348, $3,294 and $3,123, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $1,252, $1,287 and $1,523 during 2016, 2015 and 2014, respectively. The tax benefit recognized during 2016, 2015 and 2014 related to stock based compensation was $476, $598 and $641, respectively. Unrecognized compensation cost related to non-vested stock as of September 30, 2016 was $1,292, which amount will be amortized to expense through November 2019 or adjusted for changes in future estimated or actual forfeitures.

Restricted Stock Units

All restricted stock units awarded by the Company during fiscal 2016 and in prior years have been granted at their fair market value on the date of grant. The fair value at date of grant is based on the number of units granted and the average of the Company’s high and low Class A common stock trading price on the date of grant or, if the Company’s shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock trading price on the last preceding date on which the Company’s shares traded. The vesting period for RSUs is generally one year from the date of grant for RSUs granted to directors and three years from the date of the grant for RSUs granted to employees.

A summary of RSU activity follows:



		Weighted Average
	Number of RSUs	Grant Price
RSUs at October 3, 2014	10,792	$	22.71
RSUs granted	7,336		33.40
RSUs vested	(10,792)		22.71
RSUs at October 2, 2015	7,336		33.40
RSUs granted	48,456		23.64
RSUs vested	(7,336)		33.40
RSUs forfeited	(2,045)		24.16
RSUs at September 30, 2016	46,411		23.62

Stock compensation expense, net of forfeitures, related to restricted stock units was $547, $286 and $165 for the years ended September 30, 2016, October 2, 2015 and October 3, 2014, respectively. Unrecognized compensation cost related to non-vested restricted stock units as of September 30, 2016 was $652, which amount will be amortized to expense through September 2018 or adjusted for changes in future estimated or actual forfeitures.

Employee Stock Purchase Plan

The 2009 Employees’ Stock Purchase Plan (the “Purchase Plan”) provides for the issuance of shares of Class A common stock at a purchase price of not less than 85% of the fair market value of such shares on the date of grant or at the end of the offering period, whichever is lower.

The Company issued 7,732, 8,062 and 15,969 shares of Class A common stock under the Purchase Plan during the years 2016, 2015 and 2014, respectively, and recognized expense of $33, $33 and $57 in 2016, 2015 and 2014, respectively.