Note K - Share-based Compensation

9 Months Ended

Dec. 28, 2014

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE K – SHARE-BASED COMPENSATION

Total share-based compensation during the thirteen-week periods ended December 28, 2014 and December 29, 2013 was $228,000 and $192,000, respectively. Total share-based compensation during the thirty-nine week periods ended December 28, 2014 and December 29, 2013 was $629,000 and $530,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of December 28, 2014, there was $2,044,000 of unamortized compensation expense related to share-based incentive awards. We expect to recognize this expense over approximately one year and four months, which represents the weighted average remaining requisite service periods for such awards.

During the thirty-nine week period ended December 28, 2014, the Company granted options to purchase 50,000 shares at an exercise price of $53.89 per share, all of which expire five years from the date of grant. All such stock options vest ratably over a four-year period commencing August 6, 2015.

The weighted-average option fair values, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the thirty-nine weeks ended December 28, 2014, are as follows:

Weighted-average option fair values	$	11.970
Expected life (years)		4.5
Interest rate		1.66	%
Volatility		22.77	%
Dividend yield		0	%

The expected dividend yield is based on historical and projected dividend yields. The Company estimates expected volatility based primarily on historical monthly price changes of the Company’s stock equal to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. The expected option term is the number of years the Company estimates the options will be outstanding prior to exercise based on expected employment termination behavior.

During the thirty-nine weeks ended December 29, 2013, the Company granted 25,000 shares of restricted stock at a fair value of $49.80 per share representing the closing price on the date of grant, which will be fully vested five years from the date of grant. The restrictions on the shares lapse ratably over a five-year period on the annual anniversary of the date of grant. The compensation expense related to this restricted stock award is expected to be $1,245,000 and will be recognized, commencing on the grant date, over five years.

The Company recognizes compensation cost for unvested stock-based incentive awards on a straight-line basis over the requisite service period. Compensation cost charged to expense under all stock-based incentive awards is as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
Stock options	$	93	$	56	$	224	$	168
Restricted stock		135		136		405		362
Total compensation cost	$	228	$	192	$	629	$	530

Stock options outstanding: 

Transactions with respect to stock options for the thirty-nine weeks ended December 28, 2014 are as follows:

				Weighted-		Weighted-		Aggregate
				Average		Average		Intrinsic
				Exercise		Remaining		Value
	Shares			Price		Contractual Life		(In thousands)
Options outstanding at March 30, 2014		279,500		$	15.22		2.07	$	9,381
Granted		50,000		$	53.89		-		-
Expired		-			-		-		-
Exercised		(59,250	)	$	12.22		-		-
Options outstanding at December 28, 2014		270,250		$	23.03		2.03	$	14,799
Options exercisable at December 28, 2014		175,875		$	15.59		1.45	$	10,940

Restricted stock:

Transactions with respect to restricted stock for the thirty-nine weeks ended December 28, 2014 are as follows:

				Weighted -
				Average
				Grant - date Fair value
	Shares			Per share
Unvested restricted stock at March 30, 2014		55,000		$	38.61
Granted		-			-
Vested		(15,000	)	$	36.13
Unvested restricted stock at December 28, 2014		40,000		$	39.54