Share-Based Compensation

6 Months Ended

Aug. 27, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

General

Total share-based compensation expense for the twenty-six weeks ended August 27, 2016 and August 29, 2015 was $5.7 million and $4.2 million, respectively.

Stock Option Activity

Stock options have been granted to non-employee directors, officers, and other key employees. Generally, options outstanding under the 2002 Incentive Plan and Amended and Restated 2009 Incentive Plan 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 twenty-six weeks ended August 27, 2016 and August 29, 2015, the Company granted approximately 1,438,000 and 762,000 options, respectively. The estimated weighted-average fair value of the individual options granted during the twenty-six weeks ended August 27, 2016 and August 29, 2015, was $4.82 and $6.57, respectively, on the date of the grant. The fair values for all options granted were determined using a Black-Scholes option-pricing model with the following weighted average assumptions:



	Twenty-Six Weeks Ended
	August 27, 2016		August 29, 2015
Dividend yield	2.2	%	1.5	%
Volatility	32.9	%	33.4	%
Risk-free interest rate	1.3	%	1.4	%
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 option. 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 August 27, 2016, there was $8.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested options. That expense is expected to be recognized over a weighted average period of 1.7 years.

Restricted Stock Activity

The Company has granted shares of the Company’s common stock to non-employee directors, officers, and other key employees that are subject to restrictions. The shares of restricted stock granted to employees under the Amended and Restated 2009 Incentive Plan generally cliff-vest after a three-year period or vest upon the achievement of specified levels of net income or earnings per share growth over a three-year period. For performance-based awards, should the net income or earnings per share growth 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 twenty-six weeks ended August 27, 2016 and August 29, 2015, the Company granted approximately 470,000 and 208,000 restricted shares, respectively.

As of August 27, 2016, there was $9.9 million of total unrecognized compensation expense, net of estimated forfeitures, related to nonvested restricted stock. That expense is expected to be recognized over a weighted average period of 1.7 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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