Stock-Based Compensation

6 Months Ended

Aug. 29, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Note 11 – Stock-Based Compensation

Restricted Stock Units

During the twenty-six weeks ended August 29, 2015, we granted 363,095 Restricted Stock Units (“RSUs”) to our President and Chief Executive Officer (“the CEO”), pursuant to the CEO’s employment agreement. The RSUs vest over three years, subject to the CEO’s continued employment, and settle in shares over a five-year period. Until shares are issued with respect to the RSU’s, the CEO will not have any rights as a shareholder with respect to the RSU’s and will not receive dividends or be able to vote the shares represented by the RSUs. We used the fair-market value of our Common Stock on the date the award was granted to value the grant.

On April 27, 2015, we issued 238,095 shares of common stock to the CEO to settle vested RSUs from previous RSU grants. In connection with that transaction, we repurchased/withheld (from the 238,095 shares issued) 132,904 shares to provide for the CEO’s withholding tax liability. In accordance with ASC Topic 718, Compensation-Stock Compensation, the repurchase or withholding of immature shares (i.e. shares held for less than six months) by us upon the vesting of a restricted share would ordinarily result in liability accounting. ASC 718 provides an exception, if the fair value of the shares repurchased or withheld is equal or less than the employer’s minimum statutory withholding requirements. The aggregate fair value of the shares repurchased/withheld (valued at the then current fair value of $8.00 per share) was in excess of the minimum statutory tax withholding requirements and as such we are required to account for the restricted stock awards as a liability. During the twenty-six weeks ended August 29, 2015, we recorded an adjustment of $2.5 million to reclassify amounts previously recorded in additional-paid-in-capital to a liability. We, at each reporting period, will re-measure the liability, until settled, with changes in the fair value being recorded as stock compensation expense in the statement of operations. Stock compensation expense recognized in the condensed consolidated statement of operations during the thirteen and twenty-six weeks ended August 29, 2015 totaled $22,000 and $0.9 million, respectively, which is net of the $34,000 and $2.1 million, respectively, capitalized as part of real estate under development. As of August 29, 2015, we have recorded a share-based non-cash liability of $5.2 million.

Our RSU activity for the twenty-six weeks ended August 29, 2015 is as follows:

	Twenty-six Weeks Ended August 29, 2015
	Number of Shares		Weighted Average Fair Value at Grant Date

Non-vested at beginning of period		1,244,463	$	6.48
Granted RSUs		363,095	$	7.05
Vested		(296,428)	$	6.26
Non-vested at end of period		1,311,130	$	6.68