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 31, 2013, September 1, 2012 and August 27, 2011 and changes during the fiscal years then ended is presented in the table and narrative below:



	2013					2012					2011
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding – beginning of year		1,377		$	49.79		1,697		$	44.17		2,394		$	38.76
Granted		360			69.52		308			66.69		364			54.67
Exercised		(504	)		42.97		(538	)		41.65		(1,060	)		35.56
Cancelled/forfeited		(9	)		62.43		(90	)		50.39		(1	)		14.26
Outstanding – end of year		1,224		$	58.30		1,377		$	49.79		1,697		$	44.17
Exercisable – end of year		385		$	48.78		505		$	42.68		584		$	39.46
Weighted average fair value of options granted	$	15.33				$	17.67				$	14.48

The total intrinsic value of options exercised during the fiscal years ended August 31, 2013, September 1, 2012 and August 27, 2011 was $16,402, $16,185, and $28,520, respectively. As of August 31, 2013, the total intrinsic value of options exercisable was $10,478 and the total intrinsic value of options outstanding was $21,658. The unrecognized share-based compensation cost related to stock option expense at August 31, 2013 was $8,028 and will be recognized over a weighted average of 1.7 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:



	2013			2012			2011
Expected life (years)		3.8			4.8			4.8
Risk-free interest rate		0.55	%		1.0	%		1.1	%
Volatility		32.9	%		35.2	%		35.1	%
Dividend yield		1.70	%		1.70	%		1.70	%

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 31, 2013:



Range of Exercise Prices	Number of Options Outstanding at August 31, 2013		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Intrinsic Value		Number of Options Exercisable at August 31, 2013		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Intrinsic Value
$23.41 – $38.07		87		2.0	$	37.08	$	3,373		87		2.0	$	37.08	$	3,373
38.08 – 44.17		222		3.0		43.80		7,163		110		2.8		43.43		3,587
44.18 – 65.76		281		3.7		53.82		6,226		127		3.2		52.76		2,947
65.77 – 73.71		634		5.7		68.28		4,896		61		5.1		66.69		571
		1,224		4.5	$	58.30	$	21,658		385		3.1	$	48.78	$	10,478

Restricted Stock Awards

A summary of the activity of the nonvested restricted stock awards granted under the 2005 Omnibus Incentive Plan for the fiscal year ended August 31, 2013 is as follows:



	Shares			Weighted Average Grant Date Fair Value
Nonvested at September 1, 2012		535		$	52.37
Granted		141			70.37
Vested		(159	)		45.23
Forfeited/Cancelled		(12	)		58.90
Nonvested at August 31, 2013		505		$	59.47

The fair value of shares vested during the fiscal year ended August 31, 2013 and September 1, 2012 was $7,175 and $6,804, respectively.

The unrecognized compensation cost related to the nonvested restricted stock awards at August 31, 2013 is $16,188 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 31, 2013 is as follows:



	2013				2012
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Non-vested restricted stock unit awards at September 1, 2012		192	$	54.90		189	$	54.68
Granted		4		76.20		3		70.78
Vested		—		—		—		—
Cancelled/forfeited		—		—		—		—
Non-vested restricted stock unit awards at August 31, 2013		196	$	55.32		192	$	54.90

The unrecognized compensation cost related to the RSUs at August 31, 2013 was $3,956 and is expected to be recognized over a period of 2.2 years.

Associate 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 31, 2013, approximately 160 shares remain reserved for issuance under this plan. Associates purchased approximately 53 and 52 shares of common stock during fiscal 2013 and 2012 at an average per share price of $70.55 and $64.71, 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 2013, 2012, and 2011, the Company contributed $5,243, $4,738 and $4,036, respectively, to the plan. The Company contributions are discretionary.