Employee Stock Plans

3 Months Ended

Jan. 01, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Stock Plans

Note 11 – Employee Stock Plans

As of January1,2016, the Company had three share-based compensation plans, which are described below.  The compensation cost that has been charged against income for those plans was $3.3million and $2.9million for the first three months of fiscal 2016 and 2015, respectively.  During the first three months of fiscal 2016 and 2015, the Company issued 72,349 and 119,278 shares, respectively, under its share-based compensation plans.

Employee Stock Purchase Plan (ESPP)

The ESPP is a “safe-harbor” designed plan whereby shares are purchased by participants at a discount of 5% of the market value on the purchase date and, therefore, compensation cost is not recorded.

Employee Sharesave Scheme

The Company offers shares under its employee sharesave scheme for U.K. employees.  This plan allows participants the option to purchase shares at a 5% discount of the market price of the stock as of the beginning of the offering period.  The term of these options is three years.  The sharesave scheme is not a “safe-harbor” design, and therefore, compensation cost is recognized on this plan.  Under the sharesave scheme, option exercise prices are equal to the fair market value of the Company’s common stock on the date of grant.  No options were granted during the first fiscal quarter of 2016 or 2015.

Equity Incentive Plan

Under the equity incentive plan, option exercise prices are equal to the fair market value of the Company’s common stock on the date of grant.  The Company granted 217,200 and 50,800 options to purchase shares in the three month periods ended January1,2016, and December26, 2014, respectively.  The weighted-average grant date fair value of options granted during the three month periods ended January1,2016, and December26, 2014, was $35.87 and $54.08 per share, respectively.

The fair value of each option granted by the Company was estimated using a Black-Scholes pricing model, which uses the assumptions noted in the following table.  The Company uses historical data to estimate volatility of the Company’s common stock and option exercise and employee termination assumptions.  The risk-free rate for the contractual life of the option is based on the U.S. Treasury zero coupon issues in effect at the time of the grant.

	Three Months Ended
	January 1,	December 26,
	2016	2014
Volatility	33.06 - 40.52%	40.73 - 41.89%
Risk-free interest rate	1.61 - 2.24%	1.43 - 2.00%
Expected life (years)	5 - 9	5 - 9
Dividends	0	0

The Company granted 33,400 and 13,500 restricted stock units in the three month periods ended January1,2016, and December26, 2014, respectively.  The weighted-average grant date fair value of restricted stock units granted during the three month periods ended January1,2016, and December26, 2014, was $86.29 and $117.53 per share, respectively.  The fair value of each restricted stock unit granted by the Company is equal to the fair market value of the Company’s common stock on the date of grant.