11. 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 27, 2011, August 28, 2010 and August 29, 2009 and changes during the fiscal years then ended is presented in the table and narrative below:


	2011					2010					2009
				Weighted					Weighted					Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price
Outstanding—beginning of year		2,394		$	38.76		2,759		$	33.65		2,644		$	30.56
Granted		364			54.67		515			44.17		497			38.07
Exercised		(1,060	)		35.56		(879	)		25.95		(364	)		16.81
Cancelled/forfeited		(1	)		14.26		(1	)		14.45		(18	)		42.59
Outstanding—end of year		1,697			44.17		2,394			38.76		2,759			33.65
Exercisable—end of year		584			39.46		1,174			34.42		1,632			27.92
Weighted average fair value of options granted	$	14.48				$	12.49				$	10.05

The total intrinsic value of options exercised during the fiscal years ended August 27, 2011, August 28, 2010 and August 29, 2009 was $28,520, $22,177, and $8,322, respectively. As of August 27, 2011, the total intrinsic value of options exercisable was $11,402 and the total intrinsic value of options outstanding was $25,170. The unrecognized share-based compensation cost related to stock option expense at August 27, 2011 was $8,973 and will be recognized over a weighted average of 1.65 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


	2011			2010			2009
Expected life (years)		4.8			4.8			4.8
Risk-free interest rate		1.1	%		2.2	%		2.7	%
Volatility		35.1	%		35.2	%		30.3	%
Dividend yield		1.70	%		1.70	%		1.40	%

The following table summarizes information about stock options outstanding and exercisable at August 27, 2011:


	Number of		Weighted						Number of		Weighted
	Options		Average		Weighted				Options		Average		Weighted
	Outstanding at		Remaining		Average				Exercisable		Remaining		Average
	August 27,		Contractual		Exercise		Intrinsic		at August 27,		Contractual		Exercise		Intrinsic
Range of Exercise Prices	2011		Life		Price		Value		2011		Life		Price		Value
$14.50-$28.30		95		2.0	$	23.08	$	3,421		95		2.0	$	23.08	$	3,421
28.31-37.45		67		1.3		37.28		1,462		67		1.3		37.28		1,462
37.46-42.78		476		3.6		39.27		9,377		227		3.0		40.58		4,173
42.79-65.76		1,059		5.0		48.71		10,910		195		3.8		46.94		2,346
		1,697		4.3	$	44.17	$	25,170		584		2.9	$	39.46	$	11,402

Restricted Stock Awards

A summary of the activity of the unvested restricted stock awards granted under the Company's 1995 Restricted Stock Plan and 2005 Omnibus Incentive Plan for the fiscal year ended August 27, 2011 is as follows:


				Weighted Average Grant
	Shares			Date Fair Value
Nonvested at August 28, 2010		598		$	42.60
Granted		177			56.83
Vested		(138	)		44.49
Forfeited/Cancelled		(19	)		45.09
Nonvested at August 27, 2011		618		$	46.18

The fair value of shares vested during the fiscal year ended August 27, 2011 and August 28, 2010 was $6,154 and $5,146, respectively.

The unrecognized compensation cost related to the unvested restricted shares at August 27, 2011 is $16,219 and will be recognized over a weighted-average period of 2.25 years.

Restricted Stock Units

On October 19, 2010, the Compensation Committee of the Board of Directors of the Company approved the grant of a Restricted Stock Unit Agreement ("RSU Agreement") to the Company's President and Chief Executive Officer. The RSU Agreement covers 183 shares and provides for vesting in two installments, contingent on both performance and service conditions of the RSU Agreement. The value of each restricted stock unit is equal to the fair market value of one share of the Company's Class A Common Stock on the date of the grant. All restricted stock units that vest, including dividend equivalent units on the vested portion of the grant, will be settled in shares of the Company. For the fiscal year ended August 27, 2011, non-vested restricted stock units (including dividend equivalents) covering 189 shares were granted and remain outstanding with a weighted-average grant date fair value of $54.68 per share. The unrecognized compensation cost related to the RSUs at August 27, 2011 was $8,185 and is expected to be recognized over a period of 4.05 years.

Stock Purchase Plan

The Company has established a qualified Associate Stock Purchase Plan, the terms of which allow for qualified 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 4, 2005, shareholders of the Company approved a 300 share increase to the Associate Stock Purchase Plan. 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 27, 2011, approximately 265 shares remain reserved for issuance under this plan. Associates purchased approximately 53 and 61 shares of common stock during fiscal 2011 and 2010 at an average per share price of $55.70 and $42.74, 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 2011, 2010, and 2009, the Company contributed $4,036, $860 and $2,345, respectively, to the plan. The Company contributions are discretionary. Effective with compensation paid on or after March 29, 2009, the Company temporarily suspended its employer matching contributions to eligible participants and reinstated its matching contribution as of May 23, 2010.