Stock Options and Stock Awards

6 Months Ended

Aug. 27, 2022

Stock Options and Stock Awards

Stock Options and Stock Awards

13. Stock Options and Stock Awards

The Company recognizes stock-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 27, 2022 and August 28, 2021 include $8,069 and $8,603, 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 27, 2022 and August 28, 2021 are as follows:

	August 27, 2022			August 28, 2021
	Shares	Weighted Average Fair Value		Shares	Weighted Average Fair Value
Stock options granted	—	$	N/A	—	$	N/A
Restricted stock awards granted	1,202	$	7.74	823	$	15.07
Total awards	1,202			823

Typically, stock options 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 Company also provides certain of its associates with performance based incentive awards under its equity incentive plans, pursuant to which the associates will receive a certain number of shares of the Company’s common

stock based on the Company meeting certain financial and performance goals. If such goals are not met, no stock-based compensation expense is recognized and any recognized stock-based compensation expense is reversed. During the twenty-six week periods ended August 27, 2022 and August 28, 2021, the Company incurred expense of $1,110 and $3,167, respectively, related to these performance based incentive awards under the Company’s equity incentive plans, which is recorded as a component of stock-based compensation expense.

As of August 27, 2022, the total unrecognized pre-tax compensation costs related to unvested stock options, restricted stock and performance shares granted, net of forfeitures, and the weighted average period of cost amortization are as follows:

	August 27, 2022
	Unvested		Unvested		Unvested
	stock		restricted		performance
	options		stock		shares
Unrecognized pre-tax costs	$	408	$	17,547	$	13,314
Weighted average amortization period		0.9 years		2.2 years		2.0 years