Stock Options and Stock Awards

6 Months Ended

Aug. 31, 2019

Stock Option and Stock Award Plans

Stock Options and Stock Awards

13. 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 31, 2019 and September 1, 2018 include $10,092 and $10,246, respectively, of compensation costs related to the Company’s stock-based compensation arrangements.

During fiscal 2018, the Company issued performance units to certain of its associates. The performance units will be settled in cash based on the actual performance of the Company relative to certain financial performance goals and the stock price upon vesting. During the twenty-six week periods ended August 31, 2019 and September 1, 2018, the Company incurred a benefit of $348 compared to expense of $1,724 related to these performance based incentive plans, respectively, which is recorded as a component of stock-based compensation expense.

The total number and type of newly awarded grants and the related weighted average fair value for the twenty-six week periods ended August 31, 2019 and September 1, 2018 are as follows:

	August 31, 2019			September 1, 2018
	Shares	Weighted Average Fair Value		Shares	Weighted Average Fair Value
Stock options granted	503	$	3.54	—	$	N/A
Restricted stock awards granted	1,232	$	7.60	25	$	33.40
Total awards	1,735			25

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.

As of August 31, 2019, 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:

	August 31, 2019
	Unvested		Unvested		Unvested
	stock		restricted		performance
	options		stock		shares
Unrecognized pre-tax costs	$	1,743	$	16,518	$	246
Weighted average amortization period		3.9 years		2.2 years		0.5 years