Note 10 - Share-Based Compensation

9 Months Ended

Dec. 23, 2012

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

NOTE J – SHARE-BASED COMPENSATION

Total share-based compensation during the thirteen-week periods ended December 23, 2012 and December 25, 2011 was $385,000 and $56,000, respectively. Total share-based compensation during the thirty-nine week periods ended December 23, 2012 and December 25, 2011 was $497,000 and $218,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of December 23, 2012, there was $1,681,000of unamortized compensation expense related to unvested stock options and restricted stock. We expect to recognize this expense over approximately two years and eight months, which represents the weighted average remaining requisite service periods for such awards.

On September 14, 2010, the Company adopted the 2010 Stock Incentive Plan (“the 2010 Plan”) which initially provided for the issuance of up to 150,000 shares pursuant to the 2010 Plan together with 171,000 shares that had not been issued under the 2001 Stock Option Plan (the “2001 Plan”) and the 2002 Stock Incentive Plan (the “2002 Plan”) plus any shares subject to any outstanding options or restricted stock grants under the 2001 Plan and the 2002 Plan that subsequently expire unexercised or are otherwise forfeited up to a maximum of an additional 100,000 shares. On September 13, 2012, the Company amended the 2010 Plan increasing the number of shares available for issuance by 250,000 shares. As of December 23, 2012, options to purchase 343,500 shares of common stock or up to 244,844 shares of restricted stock may be granted pursuant the 2010 Plan, as amended.

During the thirty-nine week period ended December 23, 2012, the Company granted 50,000 shares of restricted stock at a fair value of $29.29 per share representing the closing price on the date of grant, which will be fully vested four years from the date of grant. Upon grant, 10,000 shares immediately vested and the restrictions on the remaining 40,000 shares lapse ratably over a four-year period as follows: 10,000 shares on November 1, 2013, 10,000 shares on November 1, 2014, 10,000 shares on November 1, 2015 and 10,000 shares on November 1, 2016.

The Company did not grant any options during the thirty-nine week period ended December 23, 2012. During the thirty-nine week period ended December 25, 2011, the Company granted options to purchase 177,500 shares at an exercise price of $17.75 per share, all of which expire five years from the date of grant. These stock options vest ratably over a four-year period as follows: 25% on June 6, 2012, 25% on June 6, 2013, 25% on June 6, 2014 and the balance on June 6, 2015.

The weighted-average option fair values, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the thirty-nineweeks ended December 25, 2011, are as follows:

Weighted-average option fair values	$	5.039
Expected life (years)		5.0
Interest rate		1.60	%
Volatility		28.90	%
Dividend yield		0	%

The expected dividend yield is based on historical and projected dividend yields. The Company estimates expected volatility based primarily on historical monthly price changes of the Company’s stock equal to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. The expected option term is the number of years the Company estimates the options will be outstanding prior to exercise based on expected employee exercise behavior. The Company recognizes compensation cost for unvested stock awards on a straight-line basis over the requisite service period. Compensation cost charged to expense under all stock based incentive awards is as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 23, 2012		December 25, 2011		December 23, 2012		December 25, 2011
Stock options	$	56	$	56	$	168	$	218
Restricted stock		329		-		329		-
Total compensation cost	$	385	$	56	$	497	$	218

Stock options outstanding:

Transactions with respect to stock options for the thirty-nine weeks ended December 23, 2012 are as follows:

				Weighted-		Weighted-
				Average		Average		Aggregate
				Exercise		Remaining		Intrinsic
	Shares			Price		Contractual Life		Value
Options outstanding at March 25, 2012		622,000		$	13.21		3.05	$	4,849,000
Granted		-			-		-		-
Expired		-			-		-		-
Exercised		(155,000	)	$	13.13		-		-
Options outstanding at December 23, 2012		467,000		$	13.24		2.99	$	9,344,000
Options exercisable at December 23, 2012		333,875		$	11.44		2.81	$	7,281,000

Restricted stock:

Transactions with respect to restricted stock for the thirty-nine weeks ended December 23, 2012 are as follows:

	Shares			Weighted- Average Grant-date Fair value Per share
Unvested restricted stock at March 25, 2012		-		$	-
Granted		50,000		$	29.29
Vested		(10,000	)	$	29.29
Unvested restricted stock at December 23, 2012		40,000		$	29.29