12. ASSOCIATE BENEFIT PLANS

Stock Compensation Plans

2005 Omnibus Incentive Plan

The Company’s 2005 Omnibus Incentive Plan, which is shareholder-approved and scheduled to terminate on January 3, 2016, was established to grant stock options, restricted stock, performance shares and other equity and performance-based cash compensation awards to its associates for which 6,200 shares of common stock to be issued under the Plan have been registered under the Securities Act of 1933, as amended. The Company believes that such awards serve to align the interests of its associates with those of its shareholders.

Stock Options

A summary of the status of the Company’s stock options at August 30, 2014 and changes during the fiscal year then ended is presented in the table and narrative below:


	2014

	Shares	Weighted-Average Exercise Price
Outstanding - beginning of year	1,224	$	58.30
Granted	399		81.76
Exercised	(402)		50.92
Canceled/Forfeited	(35)		73.38
Outstanding - end of year	1,186	$	68.24
Exercisable - end of year	378	$	57.30

The total intrinsic value of options exercised during the fiscal years ended August 30, 2014, August 31, 2013 and September 1, 2012 was $13,988, $16,402, and $16,185, respectively. The unrecognized share-based compensation cost related to stock option expense at August 30, 2014 was $8,064 and will be recognized over a weighted average of 1.7 years.

The fair value of each option grant for the fiscal years ended August 30, 2014, August 31, 2013 and September 1, 2012 is estimated on the date of grant using the Black‑Scholes option pricing model with the following assumptions:





		2014			2013			2012
Expected life (in years)		3.9			3.8			4.8
Risk-free interest rate		0.93	%		0.55	%		1.00	%
Expected volatility		26.6	%		32.9	%		35.2	%
Expected dividend yield		1.70	%		1.70	%		1.70	%
Weighted-Average Grant-Date Fair Value	$	14.98		$	15.33		$	17.67

The risk-free interest rate represents the United States Treasury Bond constant maturity yield approximating the expected option life of stock options granted during the period. The expected option life represents the period of time that the stock options granted during the period are expected to be outstanding, based on the mid-point between the weighted time-to-vesting and the contractual expiration date of the option. The expected volatility is based on the historical market price volatility of the Company’s common stock for the expected term of the options.

The following table summarizes information about stock options outstanding and exercisable at August 30, 2014:



Range of Exercise Prices	Number of Options Outstanding at August 30, 2014	Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price		Intrinsic Value		Number of Options Exercisable at August 30, 2014	Weighted-Average Remaining Contractual Life	Weighted-Average Exercise Price		Intrinsic Value
$38.07 – $44.16	15	0.9	$	38.22	$	768	15	0.9	$	38.22	$	768
44.17– 66.68	267	2.8		51.14		10,413	199	2.7		49.98		7,978
66.69 – 73.70	532	4.7		68.29		11,618	163	4.6		67.84		3,634
73.71 – 81.76	372	6.1		81.65		3,160	1	5.3		73.71		21
	1,186	4.7	$	68.24	$	25,959	378	3.4	$	57.30	$	12,401

Restricted Stock Awards

A summary of the non-vested restricted share awards granted under the Company’s 2005 Omnibus Incentive Plan for the fiscal year ended August 30, 2014 is as follows:


	2014

	Shares		Weighted-Average Grant-Date Fair Value
Non-vested restricted share awards at the beginning of the year	505	$	59.47
Granted	121		82.20
Vested	(176)		52.64
Canceled/Forfeited	(22)		69.39
Non-vested restricted share awards at the end of the year	428	$	68.67

The fair value of shares vested during the fiscal years ended August 30, 2014, August 31, 2013 and September 1, 2012 was $14,214, $11,373 and $10,746, respectively.

The unrecognized compensation cost related to the non-vested restricted share awards at August 30, 2014 is $15,889 and will be recognized over a weighted-average period of 2.1 years.

Restricted Stock Units

A summary of the Company’s non-vested restricted stock unit award activity including dividend equivalent units for the fiscal year ended August 30, 2014 is as follows:


	2014

	Shares		Weighted-Average Grant-Date Fair Value
Non-vested restricted stock unit awards at the beginning of the year	196	$	55.32
Granted	4		84.22
Vested	(1)		88.12
Canceled/Forfeited	—		—
Non-vested restricted stock unit awards at the end of the year	199	$	55.80

The unrecognized compensation cost related to the RSUs at August 30, 2014 was $1,835 and is expected to be recognized over a period of 1.7 years.

Associate Stock Purchase Plan

The Company has established a qualified Associate Stock Purchase Plan, the terms of which allow for eligible associates (as defined in the Associate Stock Purchase Plan) to participate in the purchase of up to a maximum of 5 shares of the Company’s Class A common stock at a price equal to 90% of the closing price at the end of each stock purchase period. On January 7, 2009, the shareholders of the Company approved an increase to the authorized but unissued shares of the Class A common stock of the Company reserved for sale under the Associate Stock Purchase Plan from 800 to 1,150 shares. As of August 30, 2014, approximately 17 shares remain reserved for issuance under this plan. Associates purchased approximately 54 and 53 shares of common stock during fiscal 2014 and 2013 at an average per share price of $75.74 and $70.55, respectively.

Savings Plan

The Company maintains a defined contribution plan with both a profit sharing feature and a 401(k) feature which covers all associates who have completed at least one month of service with the Company. For fiscal years 2014, 2013, and 2012, the Company contributed $6,174, $5,243 and $4,738, respectively, to the plan. The Company contributions are discretionary.