STOCK-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 536,657 shares of the Company’s Class A common stock available for grant to key executives and non-employee directors at September 27, 2019. Shares issued pursuant to the exercise of stock options or grants of restricted stock are typically issued first out of reserves to the extent that reserved shares are available.

The Company recognized additional tax benefits from the vesting of restricted stock and restricted stock units of $646, $369 and $404 for 2019, 2018 and 2017, respectively. In 2019 and 2018, these amounts were recorded as a component of income tax expense. In 2017, the amount was recorded as an increase in additional paid-in capital on the consolidated balance sheets and as cash from financing activities on the consolidated statements of cash flows. The Company recognizes forfeitures of equity awards as incurred.

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 27, 2019 related to the Company’s stock ownership plans is as follows:



	Shares		Weighted Average Grant Price
Non-vested stock at September 29, 2017	95,068		$	27.68
Non-vested stock grants	6,532		70.39
Restricted stock vested	(54,824	)	25.36
Non-vested stock at September 28, 2018	46,776		36.37
Non-vested stock grants	16,366		69.36
Non-vested stock forfeited	(4,290	)	38.14
Restricted stock vested	(17,244	)	30.05
Non-vested stock September 27, 2019	41,608		51.78

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 3,381 and 9,377 during 2019 and 2018, respectively. The fair value of restricted stock vested during 2019, 2018 and 2017 was approximately $1,237, $3,948 and $3,219, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $667, $501 and $941 during 2019, 2018 and 2017, respectively. The tax benefit recognized during 2019, 2018 and 2017 related to stock based compensation was $163, $122 and $358, respectively. Unrecognized compensation cost related to non-vested stock as of September 27, 2019 was $998, which amount will be amortized to expense through November 2022 or adjusted for changes in future estimated or actual forfeitures.

Restricted Stock Units

All restricted stock units awarded by the Company during fiscal 2019 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:



	Number of RSUs		Weighted Average Grant Price
RSUs at September 29, 2017	60,642		$	31.85
RSUs granted	27,868		67.82
RSUs vested	(8,931	)	35.27
RSUs at September 28, 2018	79,579		44.06
RSUs granted	22,192		71.42
RSUs forfeited	(3,052	)	58.99
RSUs vested	(40,011	)	31.59
RSUs at September 27, 2019	58,708		62.13

RSU grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of units and issuance of unrestricted shares of Class A common stock by tendering a portion of such unrestricted shares back to the Company. Shares tendered back to the Company were 6,509 and 0 during 2019 and 2018, respectively. The fair value of restricted stock recognized as a tax deduction during 2019, 2018 and 2017 was approximately $2,945, $80 and $125, respectively.

Stock compensation expense, net of forfeitures, related to restricted stock units was $1,652, $1,743 and $1,011 for the years ended September 27, 2019, September 28, 2018 and September 29, 2017, respectively. The tax benefit recognized during 2019, 2018 and 2017 related to restricted stock unit based compensation was $405, $424 and $384, respectively. Unrecognized compensation cost related to non-vested restricted stock units as of September 27, 2019 was $1,631, which amount will be amortized to expense through September 2021 or adjusted for changes in future estimated or actual forfeitures.

Compensation expense related to units earned by certain employees is based upon the attainment of certain financial goals related to cumulative net sales and cumulative operating profit over a three-year performance period. Awards are only paid if at least 80% of the target levels are met and maximum payouts are made if 120% of more of target levels are achieved. The payouts for achievement at the minimum threshold levels of performance are equal to 50% of the target award amount. The payouts for achievement at maximum levels of performance are equal to 150% of the target award amount. To the extent earned, awards are issued in shares of Company common stock after the end of the three year performance period.

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 1,594, 3,365 and 1,414 shares of Class A common stock under the Purchase Plan during the years 2019, 2018 and 2017, respectively, and recognized expense of $27, $53 and $34 in 2019, 2018 and 2017, respectively.