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Stock-Based Compensation (Tables)
3 Months Ended
May 28, 2011
Stock-Based Compensation  
Schedule of the assumptions used to estimate the Black-Scholes fair value of stock options granted

 

 

 

Three Months Ended

 

Black-Scholes Valuation Assumptions (1)

 

May 28, 2011

 

May 29, 2010

 

 

 

 

 

 

 

Weighted Average Expected Life (in years) (2)

 

6.2

 

6.1

 

Weighted Average Expected Volatility (3)

 

30.59

%

33.70

%

Weighted Average Risk Free Interest Rates (4)

 

2.34

%

2.56

%

Expected Dividend Yield

 

 

 

 

 

(1) Forfeitures are estimated based on historical experience.

(2) The expected life of stock options is estimated based on historical experience.

(3) Expected volatility is based on the average of historical and implied volatility. The historical volatility is determined by observing actual prices of the Company’s stock over a period commensurate with the expected life of the awards. The implied volatility represents the implied volatility of the Company’s call options, which are actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had market prices close to the exercise prices of the employee stock options and were measured on the stock option grant date.

(4) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options.

Schedule of changes in the Company's stock options:

Changes in the Company’s stock options for the three months ended May 28, 2011 were as follows:

 

(Shares in thousands)

 

Number of Stock Options

 

Weighted Average
Exercise Price

 

Options outstanding, beginning of period

 

10,135

 

$

37.08

 

Granted

 

519

 

56.19

 

Exercised

 

(1,645

)

35.02

 

Forfeited or expired

 

(2

)

37.82

 

Options outstanding, end of period

 

9,007

 

$

38.56

 

Options exercisable, end of period

 

7,003

 

$

37.81

Schedule of changes in the Company's restricted stock

Changes in the Company’s restricted stock for the three months ended May 28, 2011 were as follows:

 

(Shares in thousands)

 

Number of Restricted
Shares

 

Weighted Average
Grant-Date Fair
Value

 

Unvested restricted stock, beginning of period

 

4,575

 

$

35.58

 

Granted

 

739

 

56.06

 

Vested

 

(719

)

36.26

 

Forfeited

 

(18

)

35.18

 

Unvested restricted stock, end of period

 

4,577

 

$

38.78