Stock-Based Compensation

12 Months Ended

Feb. 27, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Share-Based Compensation

We have a 2019 Stock Incentive Plan and a 2019 Non-Employee Director Stock Plan (the Plans) that provide for the issuance of 1,150,000 and 150,000 shares, respectively, for various forms of stock-based compensation to employees and non-employee directors. We also have a 2009 Stock Incentive Plan and 2009 Non-Employee Director Stock Incentive Plan with shares reserved for issuance for outstanding unvested awards. Awards under these Plans may be in the form of incentive stock options (to employees only), nonstatutory options, stock-settled stock appreciation rights (SARs), or nonvested share awards and units, all of which are granted at a price or with an exercise price equal to the fair market value of the Company’s stock at the date of award. No additional awards can be made under the 2009 Stock Incentive Plan or the 2009 Non-Employee Director Stock Incentive Plan. Nonvested share awards and units generally vest over a two, three or four-year period.

Total stock-based compensation expense was $8.6 million in fiscal 2021, $6.6 million in fiscal 2020 and $6.3 million in fiscal 2019. We account for any forfeitures as they occur.

Stock Options and SARs

In June 2020, we granted 660,600 stock options which had a weighted average fair value per option at the date of grant of $5.01.

The fair value of each award grant is estimated on the date of grant using the binomial lattice option-pricing model with the following weighted-average assumptions used for grants in fiscal 2021.

	2021
Dividend yield	3.3		%
Expected volatility	40.0		%
Risk-free interest rate	0.7		%
Maximum price	$	35.70

The expected stock price volatility is based on historical experience. The risk-free rate for periods that coincide with the expected life of the options is based on the U.S. Treasury Department yield curve in effect at the time of grant.

Stock option and SAR activity for the current fiscal year is summarized below:

	Number of Shares	Weighted Average Exercise  Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value at Year-End
Outstanding at February 29, 2020	100,341	$	8.34
Awards granted	660,600	23.04
Awards exercised	(127,241)	11.45
Outstanding at February 27, 2021	633,700	$	23.04	9.3 years	$	9,099,932
Vested or expected to vest at February 27, 2021	633,700	$	23.04	9.3 years	$	9,099,932
Exercisable at February 27, 2021	215,600	$	23.04	9.3 years	$	3,096,016

Cash proceeds from the exercise of stock options were $1.5 million for fiscal 2021 and $0.2 million for fiscal 2019. The aggregate intrinsic value of securities exercised (the amount by which the stock price on the date of exercise exceeded the stock price of the award on the date of grant) was $1.8 million in fiscal 2021 and $0.6 million in fiscal 2019. No awards were issued or exercised during fiscal 2020.

Nonvested Share Awards and Units

The following table summarizes nonvested share activity for fiscal February 27, 2021: 

	Number of Shares and Units	Weighted Average Grant Date Fair Value
February 29, 2020	309,259	$	40.58
Granted	387,858	21.66
Vested	(219,081)	35.51
Canceled	(2,809)	34.03
February 27, 2021	475,227	$	27.52

At February 27, 2021, there was $7.9 million of total unrecognized compensation cost related to nonvested share and nonvested share unit awards, which is expected to be recognized over a weighted average period of approximately 29 months. The total fair value of shares vested during fiscal February 27, 2021 was $6.1 million.