STOCKHOLDER'S EQUITY

6 Months Ended

Sep. 27, 2012

STOCKHOLDER'S EQUITY

STOCKHOLDER'S EQUITY

NOTE 5—STOCKHOLDER'S EQUITY

        AMCE has one share of Common Stock issued as of September 27, 2012, which is owned by Parent.

Stock-Based Compensation

        The Company has no stock-based compensation arrangements of its own, but prior to the Merger, Parent had adopted a stock-based compensation plan. The Company has recorded stock-based compensation expense of $339,000 and $827,000 within general and administrative: other for the period June 29, 2012 through August 30, 2012 and the thirteen weeks ended September 29, 2011, respectively and $830,000 and $1,318,000 for the period March 30, 2012 through August 30, 2012 and the twenty-six weeks ended September 29, 2011, respectively. Upon the change in control as a result of the Merger, all of the stock options and restricted stock interests under both the amended and restated 2004 Stock Option Plan and the 2010 Equity Incentive Plan were cancelled and holders received payments of approximately $7,035,000. See Note 2—Merger for additional information regarding the settlement of stock options and restricted stock interests. Subsequent to the Merger, the Company currently has no stock-based compensation arrangements.

2010 Equity Incentive Plan

        Prior to the Merger, the 2010 Equity Incentive Plan ("Plan") provided for grants of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock awards, other stock-based awards or performance-based compensation awards. The Company accounted for stock options using the fair value method of accounting and had elected to use the simplified method for estimating the expected term of "plain vanilla" share option grants, as it did not have enough historical experience to provide a reasonable estimate.

        The award agreements, which consisted of grants of non-qualified stock options, restricted stock (time vesting), and restricted stock (performance vesting) to certain of its employees under the 2010 Equity Incentive Plan, generally had the following features, subject to discretionary approval by Parent's compensation committee:

• •

  Non-Qualified Stock Option Award Agreement:  Twenty-five percent of the options were to vest on each of the first four anniversaries of the date of grant. The stock options have a ten year term from the date of grant. The vested and unvested stock options were cancelled immediately prior to the closing of the Merger with Wanda. Holders of such options received payments for each option equal to the difference (if any) between the per share consideration received in the Merger and the exercise price of their options.

  •

  Restricted Stock Award Agreement (Time Vesting):  The restricted shares were to vest on the fourth anniversary of the date of grant. The restricted stock (time vesting) awards were cancelled immediately prior to the closing of the Merger with Wanda. Holders of such restricted stock (time vesting) received payments for each restricted share equal to the per share consideration received in the Merger.

  •

  Restricted Stock Award Agreement (Performance Vesting):  In fiscal 2011, the Board approved the award of 5,542 shares of restricted stock (performance vesting), of which 1,346 shares and 1,372 shares were granted in fiscal 2012 and fiscal 2011, respectively. Approximately one-fourth of the total restricted shares of 5,542 approved by the Board were to have been granted each year over a four-year period starting in fiscal 2011. Each grant had a vesting term of approximately one year conditioned upon the Company meeting certain pre-established annual performance targets. The fiscal 2013 and fiscal 2014 shares have not been granted per ASC 718-10-55-95 as the Compensation Committee has not approved the performance target for the restricted stock due to the Merger with Wanda. The unvested restricted stock (performance vesting) awards for fiscal 2013 and fiscal 2014 were cancelled immediately prior to the closing of the Merger. Holders of unvested restricted stock awards received payments for each restricted share equal to the per share consideration received in the Merger.

        A summary of stock option activity is as follows:

	Number of Shares(1)			Weighted Average Exercise Price Per Share
Outstanding at March 29, 2012		35,678.168		$	449.88
Granted		—			—
Cancelled		(35,678.168	)		449.88
Outstanding at August 30, 2012		—		$	—
Exercisable at August 30, 2012		—		$	—

(1)

Includes shares previously granted under the amended and restated 2004 Stock Option Plan. On July 23, 2010, the Board determined that the Company would no longer grant any awards of shares of common stock of the Company under the amended and restated 2004 Stock Option Plan.

        The following table represents the unvested restricted stock (time vesting) and (performance vesting) activity for the twenty-two weeks ended August 30, 2012:

	Shares of Restricted Stock			Weighted Average Grant Date Fair Value
Unvested at March 29, 2012		5,366		$	752.00
Granted		—			—
Cancelled		(5,366	)		752.00
Unvested at August 30, 2012		—		$	—

(1)

As discussed above, since there was not a grant of restricted stock (performance vesting) shares during fiscal 2013, there was no unvested restricted stock (performance vesting) shares reported in this table.