Note

June 24, 2017,

the Company has

three

stock-based employee compensation plans. Share-based compensation expense (benefit) was recognized as follows:

	Three months ended					Nine months ended
	June 24,			June 25,		June 24,			June 25,
	2017			2016		2017			2016
	(in thousands, except per share amounts)


Stock Options	$	(20	)	$	112	$	(165	)	$	56
Stock purchase plan		65			96		300			248
Stock issued to an outside director		14			-		42			-
Restricted stock issued to an employee		1			1		3			3
Total share-based compensation	$	60		$	209	$	180		$	307

The above compensation is net of tax benefits	$	751		$	470	$	2,060		$	1,427

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal

2017

first

nine

months: expected volatility of

15.8%;

risk-free interest rate of

2.0%;

dividend rate of

1.3%

and expected lives of

years.

During the

2017

nine

month period, the Company granted

159,294

stock options. The weighted-average grant date fair value of these options was

$18.85.

During the

2016

nine

month period, the Company granted

159,170

stock options. The weighted-average grant date fair value of these options was

$13.94.

Expected volatility is based on the historical volatility of the price of our common shares over the past

months for

year options and

years for

year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.