Stock-Based Compensation

12 Months Ended

Mar. 03, 2013

Stock-Based Compensation [Abstract]

Stock-Based Compensation

5. STOCK-BASED COMPENSATION

     As of March 3, 2013, the Company had a 2002 Stock Option Plan (the "Plan"), and no other stock-based compensation plan. The 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 the 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 Plan. At March 3, 2013, 1,599,596 shares of common stock of the Company were reserved for issuance upon exercise of stock options under the Plan, and 621,813 options were available for future grant under the Plan. Options to purchase 205,520 and 198,750 shares of common stock were granted during the 2013 and 2012 fiscal years, respectively.

     The compensation expense for stock options includes an estimate for forfeitures and is recognized on a straight line basis over the requisite service period.

     The future compensation expense to be recognized in earnings before income taxes for options outstanding at March 3, 2013 was $2,606 and will be recognized over the next four fiscal years.

     The Company records its stock-based compensation at fair value. The weighted average fair value for options was estimated at the dates of grants, using the Black-Scholes option pricing model. The following table represents the weighted average fair value and valuation assumptions used for options granted in the 2013, 2012 and 2011 fiscal years:

				Fiscal Year
		2013		2012		2011
Weighted average fair value
of option grants	$	8.56	$	6.96	$	10.19
Risk free interest rates		1.50- 1.80%		1.90%		2.63- 3.34%
Expected stock price volatility		35.02- 37.06%		35.40%		35.40- 35.70%
Expected dividend yields		1.54- 1.65%		1.50- 1.80%		1.29- 1.52%
Estimated option terms		5.7- 6.9 years		5.4- 6.5 years		5.5- 5.7 years

     The risk free interest rates are based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of the grant. Volatility factors are based on historical volatility of the Company's common stock. The expected dividend yields are based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the 2013 fiscal year. The estimated terms of the options are based on evaluations of the historical and expected future employee exercise behavior.

Information with respect to stock option activity follows:

					Weighted
					Average
				Weighted	Remaining		Aggregate
	Outstanding			Average	Contractual Term		Intrinsic
	Options			Exercise Price	(in years)		Value
Balance, February 28, 2010	1,018,095		$	24.89
Granted	23,000			30.49
Exercised	(181,343	)		20.07
Terminated or expired	(57,663	)		26.12
Balance, February 27, 2011	802,089		$	26.05
Granted	198,750			22.53
Exercised	(73,412	)		24.65
Terminated or expired	(11,476	)		25.75
Balance, February 26, 2012	915,951		$	25.40
Granted	205,520			25.60
Exercised	(35,987	)		21.16
Terminated or expired	(107,701	)		25.91
Balance, March 3, 2013	977,783		$	25.54	6.10	$	741
Exercisable, March 3, 2013	614,076		$	26.06	4.40	$	357

     The total values realized (the market value of the underlying shares on the date of exercise, less the exercise price, times the number of shares acquired) from the exercise of options during the 2013, 2012 and 2011 fiscal years were $227, $402 and $1,818, respectively.