Share-Based Compensation

12 Months Ended

Mar. 02, 2024

Share-Based Payment Arrangement [Abstract]

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. Awards under these Plans may be in the form of incentive stock options (to employees only), non-statutory 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. We also have 2009 Non-Employee Director Stock Incentive Plan under which deferred restricted stock units were allocated, in addition to deferred restricted stock units acquired pursuant to a dividend equivalent reinvestment feature. As of June 23, 2019, no additional awards can be made under the 2009 Non-Employee Director Stock Incentive Plan.

We recorded share-based compensation expense, in which we account for any forfeitures as they occur, as follows:


(In thousands)	2024		2023		2022
Restricted stock awards and restricted stock unit awards	$	6,753	$	5,607	$	5,345
Performance stock unit awards	2,714		2,389		501
Stock options	254		660		447

Share-based compensation expense	9,721		8,656		6,293

Stock Options

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 25, 2023	158,000	$	23.04

Awards exercised	(86,458)	23.04
Awards canceled	(71,542)	23.04
Outstanding at March 2, 2024	—	$	—	0.0 years	$	—

For the fiscal year ended March 2, 2024, there were no cash proceeds from the exercise of stock options as all stock options were exercised on a stock-for-stock basis. 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. For the fiscal year ended February 25, 2023, there were no cash proceeds from the exercise of stock options as all stock options were exercised on a stock-for-stock basis. The aggregate intrinsic value of securities exercised was $2.7 million.

Service Condition Awards

Nonvested share awards and units generally vest over a two, three or four-year period. The following table summarizes nonvested restricted stock awards and restricted stock units activity for fiscal 2024:



	Number of Shares and Units	Weighted Average Grant Date Fair Value
February 25, 2023	375,080	$	35.89
Granted	199,138	43.38
Vested	(166,957)	32.54
Canceled	(22,800)	42.82
March 2, 2024	384,461	$	40.28

Performance Condition Awards

In fiscal 2022, the Compensation Committee of the Board of Directors implemented an executive compensation program for certain key employees. In each of the first quarters of fiscal 2024, 2023 and fiscal 2022, we issued performance shares in the form of nonvested share unit awards, which give the recipient the right to receive shares earned at the end of the respective three-fiscal-year performance period. The number of share units issued at grant is equal to the target number of performance shares and allows for the right to receive a variable number of shares, ranging from 0% to 200% of target, dependent on achieving a defined performance goal and being employed at the end of the performance period.

The following table summarizes nonvested performance share units granted and outstanding for which all plans are at maximum achievement of 200% of target:



	Number of Shares and Units	Weighted Average Grant Date Fair Value
February 25, 2023	79,699	$	40.83
Granted	48,483	43.61

Canceled	(13,078)	41.80
March 2, 2024	115,104	$	41.89

At March 2, 2024, there was $11.2 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 21 months. The total fair value of shares vested during fiscal 2024 was $5.8 million.