Stock-Based Compensation

3 Months Ended

May 27, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6. STOCK-BASED COMPENSATION

As of May 27, 2012, the Company had a 2002 Stock Option Plan, and no other stock-based compensation plan. The 2002 Stock Option Plan has been approved by the Company's shareholders and provides for the grant of stock options to directors and key employees of the Company. All options granted under such Plan have exercise prices equal to the fair market value of the underlying common stock of the Company at the time of grant, which pursuant to the terms of the Plan, is the reported closing price of the common stock on the New York Stock Exchange on the date preceding the date the option is granted. Options granted under the Plan become exercisable 25% one year from the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant, and expire 10 years from the date of grant.

Options to purchase a total of 1,800,000 shares of common stock were authorized for grant under the 2002 Stock Option Plan. At May 27, 2012, 1,634,396 shares of common stock of the Company were reserved for issuance upon exercise of stock options under the 2002 Stock Option Plan and 765,270 options were available for future grant under the 2002 Stock Option Plan. No options of common stock were granted during the 13 week periods ended May 27, 2012 and May 29, 2011, respectively.

The Company records its stock-based compensation at fair value.

The future compensation expense to be recognized in earnings before income taxes for options outstanding at May 27, 2012 is $1,660 and will be recognized over the remaining nine months of the current year fiscal year and over the 2014, 2015 and 2016 fiscal years.

The following is a summary of option activity for the 13 weeks ended May 27, 2012:

					Weighted
					Average
				Weighted	Remaining
				Average	Contract		Aggregated
				Exercise	Life in		Intrinsic
	Options			Price	Months		Value
Outstanding at February 26, 2012	915,951		$	25.40	70.98	$	4,338
Granted	-			-
Exercised	(1,187	)		26.65
Terminated or expired	(45,638	)		28.82
Outstanding at May 27, 2012	869,126		$	25.22	71.46	$	550
Exercisable at May 27, 2012	564,323		$	25.95	54.06	$	220

The total intrinsic values of options exercised during the 13 weeks ended May 27, 2012 and May 29, 2011 were $5 and $27, respectively.