Note K - Share-based Compensation

9 Months Ended

Dec. 25, 2016

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

25,

2016

and

December

27,

2015

was

$136,000

and

$173,000,

respectively. Total share-based compensation during the

thirty

-

nine

week periods ended

December

25,

2016

and

December

27,

2015

was

$482,000

and

$549,000,

respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of

December

25,

2016,

there was

$599,000

of unamortized compensation expense related to share-based incentive awards. We expect to recognize this expense over approximately

one

year and

seven

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

25,

2016.

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 25, 2016		December 27, 2015		December 25, 2016		December 27, 2015
Stock options	$	38	$	38	$	114	$	144
Restricted stock		98		135		368		405
Total compensation cost	$	136	$	173	$	482	$	549

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 commencing

August

6,

2015.

In connection with the Company’s special cash dividend, which was paid on

March

27,

2015,

to stockholders of record as of

March

20,

2015,

the Company performed an analysis, pursuant to the anti-dilution provisions of the Company’s

2010

Stock Incentive Plan, and issued replacement options to purchase

75,745

shares at an exercise price of

$35.576

for the unvested stock options that were outstanding as of

March

29,

2015.

Nathan’s performed its evaluation based on the closing price of its common stock on Friday,

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

25,

2016

are as follows:

				Weighted-		Weighted-		Aggregate
				Average		Average		Intrinsic
				Exercise		Remaining		Value
	Shares			Price		Contractual Life		(in thousands)
Options outstanding at the beginning of the fiscal year (A)		124,030		$	26.29		2.13	$	1,952
Granted		-			-		-		-
Expired		-			-		-		-
Exercised		(48,285	)	$	11.72		-		1,555
Options outstanding at December 25, 2016		75,745		$	35.58		2.61	$	2,164
Options exercisable at December 25, 2016		37,873		$	35.58		2.61	$	1,082

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

25,

2016

are as follows:

				Weighted-
				Average
				Grant-date Fair value
	Shares			Per share
Unvested restricted stock at March 27, 2016		25,000		$	41.59
Granted		-			-
Vested		(15,000	)	$	36.13
Unvested restricted stock at December 25, 2016		10,000		$	49.80