Note 6 - Share-based Compensation

9 Months Ended

Jun. 28, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 6 Share-Based Compensation

As of June 28, 2025, the Company has two stock-based employee compensation plans. Pre-tax share-based compensation expense was recognized as follows:

	Three months ended				Nine months ended
	June 28,		June 29,		June 28,		June 29,
	2025		2024		2025		2024
	(in thousands)				(in thousands)
Stock options	$	114	$	309	$	416	$	1,171
Stock purchase plan		103		131		330		369
Stock issued to outside directors		31		43		109		144
Service share units issued to employees		1,084		637		2,679		1,763
Performance share units issued to employees		495		513		1,046		1,394
Total share-based compensation	$	1,827	$	1,633	$	4,580	$	4,841
Tax benefits	$	439	$	369	$	1,139	$	1,065

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

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.

The Company did not grant any stock options during the nine months ended June 28, 2025, or during the nine months ended June 29, 2024.

During the three and nine months ended June 28, 2025, the Company issued 21,311 and 34,868 service share units (“RSU”)s, respectively. During the three and nine months ended June 29, 2024, the Company issued 14,441 and 25,987 RSUs, respectively. Each RSU entitles the awardee to one share of common stock upon vesting. The fair value of the RSUs was determined based upon the closing price of the Company’s common stock on the date of grant.

During the three and nine months ended June 28, 2025, the Company issued 3,951 and 17,500 performance share units (“PSU”)s. During the three and nine months ended June 29, 2024, the Company issued 2,968 and 14,506 PSUs, respectively. Each PSU may result in the issuance of up to two shares of common stock upon vesting, dependent upon the level of achievement of the applicable Performance Goal. The fair value of the PSUs was determined based upon the closing price of the Company’s common stock on the date of grant. Additionally, the Company applies a quarterly probability assessment in computing this non-cash compensation expense, and any change in estimate is reflected as a cumulative adjustment to expense in the quarter of the change.