Note 5

3 Months Ended

Dec. 30, 2017

Notes to Financial Statements

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

Note 5 At December 30, 2017, the Company has three stock-based employee compensation plans. Share-based compensation expense (benefit) was recognized as follows:

	Three months ended
	December 30,		December 24,
	2017		2016
	(in thousands, except per share amounts)
Stock Options	$	615	$	(211	)
Stock purchase plan		200		174
Restricted stock issued to an employee		1		1
Total share-based compensation	$	816	$	(36	)
The above compensation is net of tax benefits	$	137	$	783

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 fo

r grants in fiscal

2018

first

three

months: expected volatility of

16.8%;

risk-free interest rate of

2.1%;

dividend rate of

1.2%

and expected lives of

5

years.

During the

fiscal year

2018

three

month period, the Company granted

1,500

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

$23.14.

During the

fiscal year

2017

three

month period, the Company granted

300

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

$15.15.

Expected volatility is based on the

historical volatility of the price of our common shares over the past

50

months for

5

year options and

10

years for

10

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.