Stock Options and Stock Awards

6 Months Ended

Aug. 30, 2014

9. Stock Options and Stock Awards

The Company recognizes share-based compensation expense over the requisite service period of the award, net of an estimate for the impact of forfeitures. Operating results for the twenty-six week periods ended August 30, 2014 and August 31, 2013 include $9,892 and $8,077, respectively, of compensation costs related to the Company's stock-based compensation arrangements.

The total number and type of newly awarded grants and the related weighted average fair value for the twenty-six week periods ended August 30, 2014 and August 31, 2013 are as follows:


	August 30, 2014				August 31, 2013
	Shares		Weighted Average Fair Value		Shares		Weighted Average Fair Value
Stock options granted		3,113	$	4.43		4,828	$	1.91
Stock awards granted		3,304	$	7.01		2,721	$	2.77


Total awards		6,417				7,549

Typically, stock options granted vest, and are subsequently exercisable in equal annual installments over a four-year period for employees. Stock awards typically vest in equal annual installments over a three-year period.

The Company calculates the fair value of stock options using the Black- Scholes-Merton option pricing model. The following assumptions were used in the Black-Scholes-Merton option pricing model:


	Twenty-Six Week Period Ended
	August 30, 2014			August 31, 2013
Expected stock price volatility		74	%		85	%
Expected dividend yield		0	%		0	%
Risk-free interest rate		1.7	%		1.4	%
Expected option life		5.5 years			5.5 years

As of August 30, 2014, the total unrecognized pre-tax compensation costs related to unvested stock options and restricted stock grants, net of estimated forfeitures and the weighted average period of cost amortization are as follows:


	August 30, 2014
	Unvested stock options	Unvested restricted stock
Unrecognized pre-tax costs	$ 23,018	$ 33,348
Weighted average amortization period	2.9 years	2.6 years

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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