XML 28 R15.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Share-Based Compensation
 9 Months Ended
Nov. 22, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Share-Based Compensation SHARE-BASED COMPENSATION
Performance Units
During the nine months ended November 22, 2019, we granted 98,867 performance units ("PSUs") which are earned over a three-year period based on performance conditions and then modified based on a market condition. The expense for these awards is determined based on the probability that the performance conditions will be met and the fair value of the market condition. We used the Monte Carlo simulation model to calculate the fair value of the market condition. The total weighted-average grant date fair value for these PSUs was $16.21 per unit. The PSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets.
The weighted-average grant date fair values were determined using the following assumptions:
 
2020 Awards
Three-year risk-free interest rate (1)
2.3
%
Expected term
3 years

Estimated volatility (2)
32.5
%
_______________________________________
(1)
Based on the U.S. government bond benchmark on the grant date.
(2)
Represents the historical price volatility of the Company’s common stock for the three-year period preceding the grant date.
The total PSU expense and associated tax benefit for all outstanding awards for the three and nine months ended November 22, 2019 and November 23, 2018 are as follows:
 
Three Months Ended
Nine Months Ended
Performance Units
November 22,
2019
November 23,
2018
November 22,
2019
November 23,
2018
Expense
$
0.3

 
$
0.3

 
$
2.0

 
$
3.8

 
Tax benefit
—

 
—

 
0.5

 
1.1

 

As of November 22, 2019, there was $0.6 of remaining unrecognized compensation cost related to nonvested PSUs, which is expected to be recognized over a remaining weighted-average period of 1.5 years.
The PSU activity for the nine months ended November 22, 2019 is as follows:
Maximum Number of Shares That May Be Issued Under Nonvested Units
Total
Weighted-Average
Grant Date
Fair Value per Unit
Nonvested as of February 22, 2019
676,800

$
18.50

Granted
237,280

16.21

Nonvested as of November 22, 2019
914,080

$
18.93


Restricted Stock Units
During the nine months ended November 22, 2019, we awarded 842,609 restricted stock units ("RSUs"). These RSUs have restrictions on transfer which lapse three years after the date of grant, at which time the units will be issued as unrestricted shares of Class A Common Stock. RSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the requisite service period based on the value of the underlying shares on the date of grant.
The RSU expense and associated tax benefit for all outstanding awards for the three and nine months ended November 22, 2019 and November 23, 2018 are as follows:
 
Three Months Ended
Nine Months Ended
Restricted Stock Units
November 22,
2019
November 23,
2018
November 22,
2019
November 23,
2018
Expense
$
1.8

 
$
2.0

 
$
11.7

 
$
11.0

 
Tax benefit
0.5

 
0.6

 
3.1

 
3.0

 

As of November 22, 2019, there was $8.4 of remaining unrecognized compensation cost related to nonvested RSUs, which is expected to be recognized over a weighted-average period of 1.9 years.
The RSU activity for the nine months ended November 22, 2019 is as follows:
Nonvested Units
Total
Weighted-Average
Grant Date
Fair Value
per Unit
Nonvested as of February 22, 2019
1,721,896

$
15.39

Granted
842,609

15.84

Vested
(153,777
)
14.07

Forfeited
(38,503
)
15.26

Nonvested as of November 22, 2019
2,372,225

$
15.64