Stock-Based Compensation

3 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(6) Stock-Based Compensation

Under the Company’s equity incentive plans, employees and directors may be granted stock options, restricted stock, restricted stock units and performance awards. As of December 31, 2011, there were 142,000 shares available for future grants under the plans.

Stock option awards. Under the Company’s equity incentive plans, employees and directors may be granted options to purchase shares of the Company’s common stock at the fair market value on the date of the grant. Options granted under these plans generally vest over three years and expire ten years from the date of the grant. Compensation expense and excess tax benefits associated with stock options for the three-month periods ended December 31, 2011 and January 1, 2011 are as follows:

	Three Months Ended
(In thousands)	December 31,     2011	January 1,     2011
Stock options:
Compensation expense	$129	$227
Excess tax benefits	5	—

As of December 31, 2011, the remaining unamortized compensation cost related to unvested stock option awards was $457,000, which is expected to be recognized over a weighted average period of 1.5 years.

The fair value of each option grant is estimated on the date of grant using a Monte Carlo valuation model based upon assumptions that are evaluated and revised, as necessary, to reflect market conditions and actual historical experience. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend yield is calculated based on the Company’s annual dividend as of the option grant date. The expected volatility is derived using a term structure based on historical volatility and the volatility implied by exchange-traded options on the Company’s common stock. The expected term for options is based on the results of a Monte Carlo simulation model, using the model’s estimated fair value as an input to the Black-Scholes-Merton model, and then solving for the expected term.

The following table summarizes stock option activity for the three-month period ended December 31, 2011:

	Options			Exercise Price Per Share				Contractual Term -		Aggregate Intrinsic
	Outstanding (in thousands)			Range		Weighted Average		Weighted Average		Value (in thousands)
Outstanding at October 1, 2011		994		$	0.18 – $20.27	$	10.89
Granted		—			—    —		—
Expired		—			—    —		—
Exercised		(4	)		0.18 – 0.18		0.18			$	42
Outstanding at December 31, 2011		990			0.18 – 20.27		10.93		6.77 years		1,378
Vested and anticipated to vest in the future at December 31, 2011		968					10.95		6.73 years		1,353
Exercisable at December 31, 2011		630					11.28		5.68 years		1,011

Restricted stock units. On January 21, 2009, the Executive Compensation Committee of the Board of Directors approved a change in the equity compensation program such that awards of restricted stock units (“RSUs”) to employees and directors would be made in lieu of awards of restricted stock. RSUs granted under these plans are valued based upon the fair market value on the date of the grant and provide for a dividend equivalent payment which is included in compensation expense. The vesting period for RSUs is generally one to three years from the date of the grant. RSUs do not have voting rights. There were no RSU grants during the three-month periods ended December 31, 2011 and January 1, 2011. Amortization expense for RSUs for the three-month periods ended December 31, 2011 and January 1, 2011 is as follows:

	Three Months Ended
(In thousands)	December 31,     2011		January 1,     2011
Amortization expense	$	240	$	246

As of December 31, 2011, the remaining unrecognized compensation cost related to unvested RSUs was $826,000, which is expected to be recognized over a weighted average vesting period of 1.74 years.

The following table summarizes RSU activity during the three-month period ended December 31, 2011:

(Unit amounts in thousands)	Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value
Balance, October 1, 2011		328	$10.25
Granted		—	—
Released		—	—
Balance, December 31, 2011		328	$10.25

Restricted stock awards. Under the Company’s equity incentive plans, employees and directors may be granted restricted stock awards (“RSAs”) which are valued based upon the fair market value on the date of the grant. The vesting period for RSAs is generally one to three years from the date of the grant. There were no RSAs granted during the three-month periods ended December 31, 2011 and January 1, 2011. Amortization expense for RSAs for the three-month periods ended December 31, 2011 and January 1, 2011 is as follows:

	Three Months Ended
(In thousands)	December 31,     2011		January 1,     2011
Amortization expense	$	—	$	66

There were no unvested restricted stock awards as of December 31, 2011.