Stock Options and Stock Awards

9 Months Ended

Nov. 29, 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 thirty-nine week periods ended November 29, 2014 and November 30, 2013 include $16,932 and $12,194, 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 thirty-nine week periods ended November 29, 2014 and November 30, 2013 are as follows:

	November 29, 2014				November 30, 2013
	Shares		Weighted Average Fair Value		Shares		Weighted Average Fair Value
Stock options granted		3,113	$	4.43		4,828	$	1.91
Restricted stock awards granted		3,309	$	7.01		2,743	$	2.79

Total awards		6,422				7,571

Typically, stock options granted vest, and are subsequently exercisable in equal annual installments over a four-year period for employees. Restricted 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:

	Thirty-Nine Week Period Ended
	November 29, 2014			November 30, 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 November 29, 2014, the total unrecognized pre-tax compensation costs related to unvested stock options and restricted stock awards granted, net of estimated forfeitures and the weighted average period of cost amortization are as follows:

	November 29, 2014
	Unvested stock options		Unvested restricted stock
Unrecognized pre-tax costs	$	20,542	$	29,768
Weighted average amortization period		2.7 years		2.4 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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