Capital Stock and Share-Based Employee Compensation 10-K (Tables)

6 Months Ended

12 Months Ended

Dec. 04, 2012

Jun. 05, 2012

Capital Stock and Share-Based Employee Compensation [Abstract]

Summary of stock option activity

The following tables summarize the activity in options for the 26 weeks ended December 4, 2012 under these stock option plans (in thousands, except per-share data):

				Weighted-
				Average
Service-based vesting:	Options			Exercise Price
Balance at June 5, 2012		2,716		$	8.79
Granted		503			7.81
Exercised		(28	)		6.24
Forfeited		(70	)		8.99
Balance at December 4, 2012		3,121		$	8.65
Exercisable at December 4, 2012		2,497		$	8.79

			Weighted-
			Average
Performance-based vesting:	Options		Exercise Price
Balance at June 5, 2012		–	$	–
Granted		250		7.81
Balance at December 4, 2012		250	$	7.81
Exercisable at December 4, 2012		–	$	–

The following table summarizes the activity in options under these stock option plans (Options and Aggregate Intrinsic Value are in thousands):

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Balance at June 2, 2009		4,802		$	23.06
Granted		622			6.58
Exercised		-			-
Forfeited		(1,378	)		25.46
Balance at June 1, 2010		4,046		$	19.70
Granted		927			9.39
Exercised		(249	)		7.64
Forfeited		(1,485	)		29.70
Balance at May 31, 2011		3,239		$	13.10
Granted		253			7.87
Exercised		(61	)		5.82
Forfeited		(715	)		28.24
Balance at June 5, 2012		2,716		$	8.79	3.48	$ 197
Exercisable		2.283		$	8.79	3.09	$ 197

Weighted average assumptions used in estimating fair value of option grant

The weighted average fair value at date of grant for options granted during fiscal 2012, 2011, and 2010 was $4.60, $5.42, and $3.69 per share, respectively. With the exception of options awarded to our CEO, the grant date fair value of stock options is amortized over the respective vesting period of the grants. Our CEO was the only person to receive an award of stock options during fiscal 2012. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	2012	2011	2010
Risk-free interest rate	0.80%	1.52%	2.20%
Expected dividend yield	0%	0%	0%
Expected stock price volatility	0.7563	0.7336	0.6945
Expected life (in years)	4.50	4.50	4.50

Summary of restricted stock activity

The following tables summarize our restricted stock activity for the 26 weeks ended December 4, 2012 (in thousands, except per-share data):

				Weighted-Average
	Restricted			Grant-Date
Service-based vesting:	Stock			Fair Value
Non-vested at June 5, 2012		797		$	8.37
Granted		773			7.42
Vested		(291	)		7.50
Forfeited		–			–
Non-vested at December 4, 2012		1,279		$	7.99

				Weighted-Average
	Restricted			Grant-Date
Performance-based vesting:	Stock			Fair Value
Non-vested at June 5, 2012		423		$	7.75
Granted		344			6.99
Vested		(85	)		7.29
Forfeited		(314	)		7.87
Non-vested at December 4, 2012		368		$	7.04

The following table summarizes the status of our restricted stock activity (in thousands, except per-share data):

				2012					2011			2010
	Shares			Weighted Average Fair Value		Shares			Weighted Average Fair Value			Shares			Weighted Average Fair Value
Performance-Based Vesting:
Non-vested at beginning of year		299		$	7.24		721			$	7.13		1,195		$	7.64
Granted		384			7.87		-				-		348			6.58
Vested		(260	)		7.33		(421	)			7.05		(186	)		7.64
Forfeited		-			-		(1	)			7.82		(636	)		7.64
Non-vested at end of year		423		$	7.75		299			$	7.24		721		$	7.13
Service-Based Vesting:
Non-vested at beginning of year		551		$	8.22		427			$	7.42		208		$	8.97
Granted		495			8.30		235				10.21		299			7.01
Vested		(248	)		7.89		(111	)			9.39		(78	)		9.99
Forfeited		(1	)		9.39		-				-		(2	)		7.63
Non-vested at end of year		797		$	8.37		551			$	8.22		427		$	7.42