Note 5

3 Months Ended

Dec. 26, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note 5 At December 26, 2020, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows:

	Three months ended
	December 26,		December 28,
	2020		2019
	(in thousands)
Stock Options	$	546	$	965
Stock purchase plan		278		202
Total share-based compensation	$	824	$	1,167
The above compensation is net of tax benefits	$	420	$	132

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model.

The Company did not grant any stock options during the fiscal years 2021 and 2020 three-month periods, respectively.

Expected volatility is based on the historical volatility of the price of our common shares over the past 51 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.