Note L - Stock Options

12 Months Ended

Sep. 28, 2013

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

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

NOTE L – STOCK OPTIONS

We have a Stock Option Plan (the “Plan”). Pursuant to the Plan, stock options may be granted to officers and our key employees which qualify as incentive stock options as well as stock options which are nonqualified. The exercise price of incentive stock options is at least the fair market value of the common stock on the date of grant. The exercise price for nonqualified options is determined by a committee of the Board of Directors. The options are generally exercisable after three years and expire no later than ten years from date of grant. There were 800,000 shares reserved under the Plan; options for 620,000 shares remain unissued as of September 28, 2013. There are options that were issued under an option plan that has since expired that are still outstanding.

We have an Employee Stock Purchase Plan (“ESPP”) whereby employees purchase stock by making contributions through payroll deductions for six month periods. The purchase price of the stock is 85% of the lower of the market price of the stock at the beginning of the six-month period or the end of the six-month period. In fiscal years 2013, 2012 and 2011 employees purchased 19,804, 20,318 and 19,708 shares at average purchase prices of $52.61, $44.11 and $39.04, respectively. ESPP expense of $363,000, $256,000 and $203,000 was recognized for fiscal years 2013, 2012 and 2011, respectively.

A summary of the status of our stock option plans as of fiscal years 2013, 2012 and 2011 and the changes during the years ended on those dates is represented below:

	Incentive Stock Options					Nonqualified Stock Options
	Stock Options Outstanding			Weighted- Average Exercise Price		Stock Options Outstanding			Weighted- Average Exercise Price
Balance, September 26, 2010		418,009		$	30.86		244,000		$	23.38
Granted		101,200			50.93		45,315			49.57
Exercised		(186,039	)		23.52		(62,000	)		10.30
Canceled		(10,050	)		36.77		-			-
Balance, September 24, 2011		323,120			41.18		227,315			32.17
Granted		118,210			57.87		45,932			57.70
Exercised		(71,350	)		39.03		(62,000	)		19.77
Canceled		(14,300	)		41.13		-			-
Balance, September 29, 2012		355,680			47.16		211,247			41.36
Granted		1,600			63.13		20,000			80.79
Exercised		(84,628	)		34.58		-			-
Canceled		(12,800	)		51.01		-			-
Balance, September 28, 2013		259,852		$	51.17		231,247		$	44.77
Exercisable Options September 28, 2013		51,892					120,000

The weighted-average fair value of incentive options granted during fiscal years ended September 28, 2013, September 29, 2012 and September 24, 2011 was $13.76, $13.43 and $12.52, respectively. The weighted-average fair value of non-qualified stock options granted during the fiscal years ended September 28, 2013, September 29, 2012 and September 24, 2011 was $28.30, $16.32 and $14.95, respectively. The total intrinsic value of stock options exercised was $2.7 million, $3.2 million and $7.0 million in fiscal years 2013, 2012 and 2011, respectively.

The total cash received from these option exercises was $2.6 million, $2.4 million and $3.4 million in fiscal years 2013, 2012 and 2011, respectively; and the actual tax benefit realized from the tax deductions from these option exercises was $666,000, $1.0 million and $1.4 million in fiscal years 2013, 2012 and 2011, respectively.

The following table summarizes information about incentive stock options outstanding at September 28, 2013:

			Options Outstanding					Options Exercisable
Range of Exercise Prices			Number Outstanding at September 28, 2013		Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Number Exercisable at September 28, 2013		Weighted- Average Exercise Price
$36.71	-	$51.14		147,542	2.2	$	45.86		51,892	$	36.73
$57.15	-	$76.27		112,310	3.9	$	58.06		-	$	-
				259,852					51,892

The following table summarizes information about nonqualified stock options outstanding at September 28, 2013:

			Options Outstanding					Options Exercisable
Range of Exercise Prices			Number Outstanding at September 28, 2013		Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Number Exercisable at September 28, 2013		Weighted- Average Exercise Price
$20.43	-	$29.78		40,000	1.6	$	25.10		40,000	$	25.10
$31.10	-	$41.75		80,000	4.7	$	35.46		80,000	$	35.46
$47.59	-	$57.99		91,247	5.6	$	53.67		-	$	-
$80.79	-	$80.79		20,000	10.0	$	80.79		-	$	-
				231,247					120,000