Note 5 - Stock-Based Compensation

3 Months Ended

Dec. 29, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(5) 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. Effective February 21, 2012, the Company’s 2005 Equity Incentive Plan was amended to increase the number of shares available for future grants by 900,000 shares. As of December 29, 2012, there were 791,000 shares available for future grants under the plans.

Stock options. 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 29, 2012 and December 31, 2011 are as follows:

	Three Months Ended
	December 29,			December 31,
(In thousands)	2012			2011
Stock options:
Compensation expense	$	139		$	129
Excess tax benefits		(36	)		(5	)

As of December 29, 2012, the remaining unamortized compensation cost related to unvested stock option awards was $479,000, which is expected to be recognized over a weighted average period of 1.36 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 29, 2012:

											Contractual	Aggregate
	Options			Exercise Price Per Share							Term -	Intrinsic
	Outstanding								Weighted		Weighted	Value
	(in thousands)			Range					Average		Average	(in thousands)
Outstanding at September 29, 2012		1,160		$	0.36	-	$	20.27	$	11.09
Exercised		(28	)		0.36	-		9.16		2.22		$	276
Outstanding at December 29, 2012		1,132			5.43	-		20.27		11.31	6.50 years		1,658
Vested and anticipated to vest in the future at December 29, 2012		1,119								11.31	6.47 years		1,643
Exercisable at December 29, 2012		773								11.42	5.47 years		1,277

           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. Amortization expense for the three-month periods ended December 29, 2012 and December 31, 2011 is as follows:

	Three Months Ended
	December 29,		December 31,
(In thousands)	2012		2011
Amortization expense	$	174	$	240

As of December 29, 2012, the remaining unrecognized compensation cost related to unvested RSUs was $739,000, which is expected to be recognized over a weighted average vesting period of 1.64 years.

The following table summarizes RSU activity during the three-month period ended December 29, 2012:

				Weighted
	Restricted			Average
	Stock Units			Grant Date
(Unit amounts in thousands)	Outstanding			Fair Value
Balance, September 29, 2012		293		$	10.74
Forfeited		(5	)		10.72
Balance, December 29, 2012		288			10.74