Stock Ownership Plans

9 Months Ended

Jun. 26, 2011

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Text Block]

STOCK OWNERSHIP PLANS

Stock Options

A summary of stock option activity during the 39 weeks ended June 26, 2011 follows:



(Thousands of Dollars and Shares, Except Per Share Data)	Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value

Outstanding, September 26, 2010	940		8.77
Granted	1,105		2.57
Exercised	(15	)	2.17
Cancelled	(149	)	9.26
Outstanding, June 26, 2011	1,881		5.14	8.4	—

Exercisable, June 26, 2011	370		16.33	6.2	—

Total unrecognized compensation expense for unvested stock options as of June 26, 2011 is $2,012,000, which will be recognized over a weighted average period of 1.9 years.

Determining Fair Value

We determine the fair value of stock options using the Black-Scholes option pricing formula. Key inputs to this formula include expected term, expected volatility and the risk-free interest rate. Each assumption is discussed below. This fair value is amortized using the straight-line method over the requisite service periods of the awards, which is generally three years.

The expected term represents the period that our stock-based awards are expected to be outstanding, and is determined based on historical experience of similar awards, giving consideration to contractual terms of the awards, vesting schedules and expectations of future employee behavior. The volatility factor is calculated using historical market data for our Common Stock. The time frame used is equal to the expected term. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining term equal to the option's expected term. When estimating forfeitures, we consider voluntary termination behavior as well as actual option forfeitures.

The following assumptions were used to estimate the fair value of 2011 option awards:




	Volatility (Percent)		111
	Risk-free interest rate (Percent)		1.01
	Expected term (Years)		4.7
	Estimated fair value (Dollars)		2.00

Restricted Common Stock

A summary of restricted Common Stock activity during the 39 weeks ended June 26, 2011 follows:



(Thousands of Shares, Except Per Share Data)	Shares		Weighted Average Grant Date Fair Value

Outstanding, September 26, 2010	299		15.02
Vested	(297	)	15.02
Forfeited	(2	)	15.02
Outstanding, June 26, 2011	—		—

The fair value of restricted Common Stock vested during the 39 weeks ended June 26, 2011 totals $723,000.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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