Note K - Share-based Compensation

6 Months Ended

Sep. 25, 2016

Notes to Financial Statements

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

NOTE K – SHARE-BASED COMPENSATION

Total share-based compensation during the thirteen-week periods ended September 25, 2016 and September 27, 2015 was $173,000 and $173,000, respectively. Total share-based compensation during the twenty-six week periods ended September 25, 2016 and September 27, 2015 was $346,000 and $376,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of September 25, 2016, there was $735,000 of unamortized compensation expense related to share-based incentive awards. We expect to recognize this expense over approximatelyone year and seven months, which represents the weighted average remaining requisite service periods for such awards.

There were no new share-based awards granted during the twenty-six week period ended September 25, 2016.

The Company recognizes compensation cost for unvested stock-based incentive 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				Twenty-six weeks ended
	September 25, 2016		September 27, 2015		September 25, 2016		September 27, 2015
Stock options	$	38	$	38	$	76	$	106
Restricted stock		135		135		270		270
Total compensation cost	$	173	$	173	$	346	$	376

Stock options outstanding:

 

During the fiscal year ended March 29, 2015, the Company granted options to purchase 50,000 shares at an exercise price of $53.89 per share, all of which expire five years from the date of grant.

In connection with the Company’s special cash dividend, which was paid on March 27, 2015, to stockholders of record as of March 20, 2015, the Company performed an analysis, pursuant to the anti-dilution provisions of the Company’s 2010 Stock Incentive Plan, and issued 75,745 replacement options at an exercise price of $35.576 for the unvested stock options that were outstanding as of March 29, 2015. Nathan’s performed its evaluation based on the closing price of its common stock on Friday, March 27, 2015 of $73.56 per share, or $48.56 per share excluding the dividend of $25.00 per share. No other terms or conditions of the outstanding options were modified. The anti-dilution provisions of the original award were structured to equalize the award’s fair value before and after the modification.

All such stock options vest ratably over a four-year period commencing August 6, 2015.

Transactions with respect to stock options for the twenty-six weeks ended September 25, 2016 are as follows:

				Weighted-		Weighted-		Aggregate
				Average		Average		Intrinsic
				Exercise		Remaining		Value
	Shares			Price		Contractual Life		(in thousands)
Options outstanding at the beginning of the fiscal year (A)		124,030		$	26.29		2.13	$	1,952
Granted		-			-		-		-
Expired		-			-		-		-
Exercised		(48,285	)	$	11.72		-		1,555
Options outstanding at September 25, 2016		75,745		$	35.58		2.86	$	1,196
Options exercisable at September 25, 2016		37,873		$	35.58		2.86	$	598

A-    

Represents outstanding options after giving effect to the replacement options issued in connection with the Company’s special dividend.

Restricted stock:

 

Transactions with respect to restricted stock for the twenty-six weeks ended September 25, 2016 are as follows:

				Weighted-
				Average
				Grant-date Fair value
	Shares			Per share
Unvested restricted stock at March 27, 2016		25,000		$	41.59
Granted		-			-
Vested		(5,000	)	$	49.80
Unvested restricted stock at September 25, 2016		20,000		$	39.54