Stock Plans

General

Total share-based compensation expense for the thirty-nine weeks ended November 29, 2014 and November 30, 2013 was $6.5 million and $4.7 million, respectively.

Stock Option Activity

Stock options have been granted to directors, officers and other key employees. Generally, options outstanding under the plans are exercisable at a price equal to the fair market value on the date of grant, vest over four years and expire ten years after the date of grant. During the thirty-nine weeks ended November 29, 2014 and November 30, 2013, the Company granted approximately 693,000 and 695,000 options, respectively. The estimated weighted-average fair value of the individual options granted during the thirty-nine weeks ended November 29, 2014 and November 30, 2013, was $8.58 and $8.15, respectively, on the date of the grant. The fair values for all options were determined using a Black-Scholes option-pricing model with the following weighted average assumptions:



	Thirty-Nine Weeks Ended
	November 29, 2014		November 30, 2013
Dividend yield	1.19	%	1.38	%
Volatility	36.8	%	53.5	%
Risk-free interest rate	1.72	%	0.84	%
Expected life	5.0 years		5.0 years

The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. The expected volatility assumption is based on the Company’s analysis of historical volatility. The risk-free interest rate assumption is based upon the average daily closing rates during the period for U.S. treasury notes that have a life which approximates the expected life of the options. The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding based on historical exercise experience.

As of November 29, 2014, there was $8.4 million of total unrecognized compensation expense, net of estimated forfeitures, related to non-vested options. That expense is expected to be recognized over a weighted average period of 1.8 years.

Restricted Stock Activity

The Company has granted shares of its common stock to non-employee directors, officers and other key employees that are subject to restrictions. The restricted stock granted to employees under the 2002 and 2009 Incentive Plans either vest upon the achievement of specified levels of net income growth over a three-year period or cliff-vest after a three-year period. For performance-based awards, should the net income criteria not be met over the three-year period, the shares will be forfeited. All restricted stock awards issued to non-employee directors cliff-vest after a one-year period from the grant date. During the thirty-nine weeks ended November 29, 2014 and November 30, 2013, the Company granted approximately 210,000 and 324,000 restricted shares, respectively.

As of November 29, 2014, there was $7.2 million of total unrecognized compensation expense, net of estimated forfeitures, related to non-vested restricted stock. That expense is expected to be recognized over a weighted average period of 2.0 years.