STOCK OPTIONS

12 Months Ended

Oct. 01, 2011

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

11. STOCK OPTIONS

The Company has options outstanding under two stock option plans, the 2004 Stock Option Plan (the “2004 Plan) and the 2010 Stock Option Plan (the “2010 Plan”), which was approved by shareholders in the second quarter of 2010. Effective with this approval the Company terminated the 2004 Plan. This action terminated the 400 authorized but unissued options under the 2004 Plan, but it did not affect any of the options previously issued under the 2004 Plan.

Options granted under the 2004 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant. During fiscal 2009, options to purchase 176,600 shares of common stock were granted and are exercisable as to 50% of the shares commencing on the first anniversary of the date of grant and as to an additional 50% commencing on the second anniversary of the date of grant.

The 2010 Stock Option Plan is the Company’s only equity compensation plan currently in effect. Under the 2010 Stock Option Plan, 500,000 options were authorized for future grant. Options granted under the 2010 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire six years after the date of grant.

The following table summarizes stock option activity under all plans:

	2011							2010
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, beginning of year		421,064		$	22.88				422,100		$	22.86
Options:
Granted		-							-
Exercised		(3,964	)	$	12.04				(1,036	)	$	12.04
Canceled or expired		(20,500	)	$	26.13				-
Outstanding, end of year (a)		396,600		$	22.82	$	202,642		421,064		$	22.88	$	405,553
Options exercisable (a)		396,600		$	22.82	$	202,642		332,764		$	25.76	$	201,580
Weighted average remaining contractual life	5.5 Years							6.5 Years
Shares available for future grant		500,000							500,000

(a) Options become exercisable at various times expiring through 2016.

The following table summarizes information about stock options outstanding as of October 1, 2011 (shares in thousands):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life (in years)		Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life (in years)
$12.04		166,100	$	12.04		7.6		166,100	$	12.04		7.6
$29.60		140,500	$	29.60		3.2		140,500	$	29.60		3.2
$32.15		90,000	$	32.15		5.2		90,000	$	32.15		5.2
		396,600	$	22.82		5.5		396,600	$	22.82		5.5

Compensation cost charged to operations for the fiscal years ended 2011 and 2010 for share-based compensation programs was approximately $190,000 and $535,000, before tax benefits of approximately $72,000 and $174,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Statements of Income.

As of October 1, 2011, all compensation cost related to stock options has been recognized.