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Stock Incentive Plan
 3 Months Ended
May 25, 2012
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]  
Stock Incentive Plan
STOCK INCENTIVE PLAN
Performance Units
In Q1 2013, we awarded 540,470 performance units to our executive officers. These performance units are earned after a three-year performance period, from 2013 through 2015, based on our total shareholder return relative to a comparison group of companies and, if earned, will be issued in the form of shares of Class A Common Stock. The number of shares that may be earned can range from 0% to 200% of the target amount, therefore the maximum number of shares that can be issued under the awards is 1,080,940. For these awards, dividend equivalents are calculated based on the actual number of shares earned at the end of the performance period equal to the dividends that would have been payable on the earned shares had they been held during the entire performance period as Class A Common Stock. At the end of the performance period, the dividend equivalents are paid in the form of cash or Class A Common Stock at the discretion of the Board of Directors. These awards will be forfeited if the participant leaves our company for reasons other than retirement, disability or death or if the participant engages in any competition with us, as defined in the plan and determined by the Administrative Committee in its discretion. If a change in control occurs at least six months following the award date, the target awards will be deemed to be earned and a pro rata number of units will be vested and paid based upon the length of time within the performance period which has elapsed prior to the effective date of the change in control.
The fair value of the performance units awarded was calculated on the grant date using the Monte Carlo simulation model with the following assumptions:
 
2013 Awards
2012 Awards
2011 Awards
Three-year risk-free interest rate (1)
0.5
%
1.4
%
1.7
%
Expected term
3 years

3 years

3 years

Estimated volatility (2)
49.8
%
50.9
%
49.2
%
Weighted-average grant-date fair value per unit
$
11.92

$
16.57

$
9.14

_______________________________________
(1)
Based on the U.S. government bond benchmark on the grant date.
(2)
Represents the historical price volatility of the Company’s common stock for the three-year period preceding the grant date.
The total performance units expense and associated tax benefit for all outstanding awards for the three months ended May 25, 2012 and May 27, 2011 are as follows:
 
Three Months Ended
Performance Units
May 25,
2012
May 27,
2011
Expense
$
3.4

 
$
4.9

 
Tax benefit
1.3

 
1.9

 
The performance units activity for the three months ended May 25, 2012 is as follows:
Maximum Number of Shares That May Be Issued Under Nonvested Units
Total
Weighted-Average
Grant Date
Fair Value per Share (2)
Nonvested as of February 24, 2012 (1)
2,529,690

$
6.00

Granted
1,080,940

5.96

Forfeited
(320,600
)
5.99

Nonvested as of May 25, 2012 (1)
3,290,030

$
5.99

_______________________________________
(1)
Total nonvested includes 194,750 units which represent the 25% portion of the awards granted in 2011 which are not subject to performance conditions.
(2)
The fair value per share presented in this table assumes the maximum number of shares will be earned at the end of the performance period.
As of May 25, 2012, there is $4.9 of remaining unrecognized compensation cost related to nonvested performance units. That cost is expected to be recognized over a remaining weighted-average period of 2.1 years.
Restricted Stock Units
In Q1 2013, we awarded 252,922 restricted stock units, of which 230,030 were awarded to our executive officers. These restricted stock units have restrictions on transfer, the majority of which lapse three years after the date of grant, at which time the units will be issued as unrestricted shares of Class A Common Stock. These awards are subject to forfeiture if a participant leaves our company for reasons other than retirement, disability, death or termination by us without cause prior to the vesting date.
The restricted stock units expense and associated tax benefit for all outstanding awards for the three months ended May 25, 2012 and May 27, 2011 are as follows:
 
Three Months Ended
Restricted Stock Units
May 25,
2012
May 27,
2011
Expense
$
1.6

 
$
1.4

 
Tax benefit
0.6

 
0.5

 

The restricted stock units activity for the three months ended May 25, 2012 is as follows:
Nonvested Units
Total
Weighted-Average
Grant Date
Fair Value
per Unit
Nonvested as of February 24, 2012
880,837

$
8.70

Granted
252,922

8.96

Vested
(16,000
)
5.31

Forfeited
(35,200
)
10.48

Nonvested as of May 25, 2012
1,082,559

$
8.75


As of May 25, 2012, there is $3.9 of remaining unrecognized compensation cost related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.1 years.
 
Three Months Ended
Grant Date Fair Value per Unit
May 25,
2012
May 27,
2011
Weighted-average grant date fair value per unit of restricted stock units granted during the three months ended May 25, 2012 and May 27, 2011
$
8.96

$
10.91