Note L - Share-based Compensation

6 Months Ended

Sep. 24, 2017

Notes to Financial Statements

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

NOTE

L – SHARE-BASED COMPENSATION

Total share-based compensation during the

thirteen

-week periods ended

September 24, 2017

and

September 25, 2016

was

$100,000

and

$173,000,

respectively. Total share-based compensation during the

twenty-six

week periods ended

September 24, 2017

and

September 25, 2016

was

$199,000

and

$346,000,

respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of

September 24, 2017,

there was

$300,000

of unamortized compensation expense related to share-based incentive awards. We expect to recognize this expense over approximately

ten

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 24, 2017.

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 24, 2017		September 25, 2016		September 24, 2017		September 25, 2016
Stock options	$	38	$	38	$	76	$	76
Restricted stock		62		135		123		270
Total compensation cost	$	100	$	173	$	199	$	346

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.

All such stock options vest ratably over a

four

-year period which commenced

August 6, 2015

.

In connection with the Company

’s special cash dividend, 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 replacement options to purchase

75,745

shares 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.

Transactions with respect to stock options for the

twenty-six

weeks ended

September 24, 2017

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)		75,745		$	35.58		2.36	$	1,899
Granted		-			-		-		-
Expired		-			-		-		-
Exercised		(11,361	)	$	35.58		-	$	379
Options outstanding at September 24, 2017		64,384		$	35.58		1.86	$	2,306
Options exercisable at September 24, 2017		45,444		$	35.58		1.86	$	1,628

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 24, 2017

are as follows:

				Weighted-
				Average
				Grant-date
				Fair value
	Shares			Per share
Unvested restricted stock at March 26, 2017		10,000		$	49.80
Granted		-			-
Vested		(5,000	)	$	49.80
Unvested restricted stock at September 24, 2017		5,000		$	49.80