Note M - Share-based Compensation

9 Months Ended

Dec. 27, 2015

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

NOTE M – SHARE-BASED COMPENSATION

Total share-based compensation during the thirteen-week periods ended December 27, 2015 and December 28, 2014 was $173,000 and $228,000, respectively. Total share-based compensation during the thirty-nine week periods ended December 27, 2015 and December 28, 2014 was $549,000 and $629,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of December 27, 2015, there was $1,254,000 of unamortized compensation expense related to share-based incentive awards. We expect to recognize this expense over approximately two years and four months, which represents the weighted average remaining requisite service periods for such awards.

There were no new share-based awards granted during the thirty-nine week period ended December 27, 2015.

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 27, 2015		December 28, 2014		December 27, 2015		December 28, 2014

Stock options	$	38	$	93	$	144	$	224
Restricted stock		135		135		405		405
Total compensation cost	$	173	$	228	$	549	$	629

Stock options outstanding:

During the fiscal year ended March 29, 2015, 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 which commenced August 6, 2015

The ex-dividend date for the special cash dividend was March 30, 2015, which was paid on March 27, 2015, to stockholders of record as of March 20, 2015. Pursuant to the anti-dilution provisions of the Company’s 2010 Stock Incentive Plan, as amended, the Company issued replacement options to purchase 75,745 shares at an exercise price of $35.576 for the unvested stock options to purchase 50,000 shares that were outstanding as of March 29, 2015. Nathan’s performed its evaluation based on the closing price of its common stock on March 27, 2015 of $73.56 per share, or $48.56 per share excluding the dividend of $25.00 per share. No other terms or conditions of the outstanding options were modified. The anti-dilution provisions of the original award were structured to equalize the award’s fair value before and after the modification.

Transactions with respect to stock options for the thirty-nine weeks ended December 27, 2015 are as follows:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value (in thousands)


Options outstanding at the beginning of the fiscal year (A)		142,964		$	24.36		2.87	$	3,460

Granted		-			-		-		-

Expired		(3,787	)	$	11.72		-		-

Exercised		(9,467	)	$	11.72		-		261

Options outstanding at December 27, 2015		129,710		$	25.65		2.29	$	3,343

Options exercisable at December 27, 2015		72,901		$	17.92		1.26	$	2,442

A-

Represents outstanding options after giving effect to the replacement options issued in connection with the Company’s special dividend.

Restricted stock:

Transactions with respect to restricted stock for the thirty-nine weeks ended December 27, 2015 are as follows:

	Shares			Weighted- Average Grant-date Fair Value Per share
Unvested restricted stock at March 29, 2015		40,000		$	39.54

Granted		-			-
Vested		(15,000	)	$	36.13

Unvested restricted stock at December 27, 2015		25,000		$	41.59