As of February 27, 2016, the Company has stock options, restricted stock awards and restricted stock units (collectively referred to as “stock-based awards”) outstanding under the 2012 Stock Plan and 2007 Stock Plan. The Company’s amended and restated 2012 Stock Plan (the "2012 Stock Plan"), as approved by stockholders in fiscal 2015, is the only plan under which stock-based awards may be granted. The 2012 Stock Plan provides that the Board of Directors or the Leadership Development and Compensation Committee of the Board (the “Compensation Committee”) may determine at the time of grant whether each stock-based award granted will be a non-qualified or incentive stock-based award under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The terms of each stock-based award will be determined by the Board of Directors or the Compensation Committee. Generally, stock-based awards granted prior to fiscal 2006 have a term of ten years, stock-based awards granted from fiscal 2006 to fiscal 2012 generally have a term of seven years, and starting in fiscal 2013 stock-based awards granted generally have a term of ten years.

At the discretion of the Board of Directors or the Compensation Committee, the Company has granted stock options to purchase common stock at an exercise price not less than 100 percent of the fair market value of the Company’s common stock on the date of grant, restricted stock awards, restricted stock units and performance awards to executive officers and other key salaried employees. Stock options have also been granted to the Company’s non-employee directors. Prior to fiscal 2013, stock options vested over four years and starting in fiscal 2013, stock options vest over three years. The vesting of restricted stock awards and restricted stock units is determined at the discretion of the Board of Directors or the Compensation Committee. The restrictions on the restricted stock awards and restricted stock units generally lapse between one and five years from the date of grant and the expense is recognized over the period during which the restrictions expire.

As of February 27, 2016, there were 18 shares available for future issuance of stock-based awards under the 2012 Stock Plan. Common stock has been delivered out of treasury stock or newly issued shares upon the exercise or vesting of stock-based awards. The provisions of future stock-based awards may change at the discretion of the Board of Directors or the Compensation Committee.

On March 20, 2013, the Company completed the Tender Offer and issued common stock to Symphony Investors, which the Company’s Board of Directors deemed to be a change-in-control for purposes of the Company’s outstanding stock-based awards, immediately accelerating the vesting of certain stock-based awards. The Company recognized $9 of accelerated stock-based compensation charges in Selling and administrative expenses in fiscal 2014 as a result of the deemed change-in-control, comprised of $5 from long-term incentive programs, $3 from restricted stock awards and $1 from stock options.

Stock Options

Stock options granted, exercised and outstanding consisted of the following:



	Shares Under Option (In thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding, February 23, 2013	22,246		$	19.20	4.63	$	10,402
Granted	10,083		6.58
Exercised	(3,121	)	2.29
Canceled and forfeited	(5,873	)	23.70
Outstanding, February 22, 2014	23,335		14.87		5.41	$	15,982
Granted	5,022		7.54
Exercised	(1,944	)	3.71
Canceled and forfeited	(5,533	)	30.68
Outstanding, February 28, 2015	20,880		9.98		6.55	$	61,073
Granted	5,531		7.44
Exercised	(1,723	)	5.84
Canceled and forfeited	(3,336	)	24.94
Outstanding, February 27, 2016	21,352		$	7.37	5.93	$	6,827
Vested and expected to vest in the future as of February 27, 2016	20,089		$	7.39	5.77	$	6,558
Exercisable as of February 27, 2016	10,888		$	7.48	4.28	$	5,722

For the Company's annual grant made in the first quarter of fiscal 2016, 2015 and 2014, the Company granted 4, 5 and 9, respectively, of non-qualified stock options to certain employees under the Company’s 2012 Stock Plan with a weighted average grant date fair value of $3.67, $3.28 and $2.78 per share, respectively. These stock options vest over a period of three years, and were awarded as part of a broad-based employee incentive initiative designed to retain and motivate employees across the Company.

In fiscal 2016, the Company's Board of Directors granted 2 stock options to the Company's Chief Executive Officer. The stock options have a grant date fair value of $2.08 per share and vest over three years.

The Company used the Black Scholes option pricing model to estimate the fair value of the options at grant date based upon the following assumptions:



	2016		2015		2014
Dividend yield	—	%	—	%	—	%
Volatility rate	49.0 – 56.5%		50.8 – 53.2%		49.3 – 51.3%
Risk-free interest rate	1.2 – 1.4%		1.2 – 1.6%		0.6 – 1.0%
Expected option life	4.0 – 4.0 years		4.0 – 5.0 years		4.0 – 6.0 years

Restricted Stock

Restricted stock awards and restricted stock unit activity consisted of the following:



	Restricted Stock Units (In thousands)		Restricted Stock Awards (In thousands)		Weighted Average Grant Date Fair Value⁽¹⁾
Outstanding, February 23, 2013	972		1,443		$	7.83
Granted	296		491		6.98
Lapsed	(1,268	)	(967	)	6.23
Canceled and forfeited	—		(30	)	6.08
Outstanding, February 22, 2014	—		937		9.09
Granted	2,274		18		7.11
Lapsed	(133	)	(417	)	6.54
Canceled and forfeited	(90	)	(2	)	6.09
Outstanding, February 28, 2015	2,051		536		11.02
Granted	65		2,339		8.74
Lapsed	(742	)	(456	)	6.82
Canceled and forfeited	(125	)	(239	)	8.79
Outstanding, February 27, 2016	1,249		2,180		$	8.68

(1) Weighted average grant date fair value is only used for restricted stock awards.

In fiscal 2016, the Company granted 2 shares of restricted stock awards to certain employees under the Company's 2012 Stock Plan. The restricted stock awards vest over a three year period from the date of the grant.

In fiscal 2015, the Company granted 2 shares of restricted stock units to certain employees under the Company's 2012 Stock Plan. The restricted stock awards vest over a three year period from the date of the grant.

Stock-Based Compensation Expense

The components of pre-tax stock-based compensation expense are included primarily in Selling and administrative expenses in the Consolidated Statements of Operations. The expense recognized and related tax benefits were as follows:



	2016			2015			2014
Stock-based compensation	$	25		$	23		$	22
Income tax benefits	(10		)	(9		)	(8		)
Stock-based compensation, net of tax	$	15		$	14		$	14

The Company realized excess tax shortfalls of $1, $1 and $1 on the exercise of stock-based awards in fiscal 2016, 2015 and 2014, respectively.

Unrecognized Stock-Based Compensation Expense

As of February 27, 2016, there was $31 of unrecognized compensation expense related to unvested stock-based awards granted under the Company’s stock plans. The expense is expected to be recognized over a weighted average remaining vesting period of approximately two years.