STOCK-BASED AWARDS

9 Months Ended

Nov. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

STOCK-BASED AWARDS

NOTE 7 – STOCK-BASED AWARDS

The Company recognized pre-tax stock-based compensation expense (included primarily in Selling and administrative expenses in the Condensed Consolidated Statements of Operations) related to stock-based awards of $3 and $2 for the third quarter ended November 30, 2013 and December 1, 2012, respectively, and $18 and $11 for the year-to-date periods ended November 30, 2013 and December 1, 2012, respectively.

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 deemed change-in-control in conjunction with certain other events resulted in the immediate acceleration of certain additional stock-based awards. As a result of this action, the 2013 and 2012 long-term incentive program awards were immediately accelerated resulting in the recognition of the remaining unamortized stock-based compensation expense and, as the exercise price for the vast majority of these awards was greater than the market price of the Company’s common stock at such time, the cash pay-out to management and employees was insignificant. Outstanding options granted prior to May of fiscal 2010 were also immediately accelerated resulting in the recognition of the remaining unamortized costs. In addition, the deemed change-in-control resulted in the acceleration of options and restricted stock awards granted after May of fiscal 2010 for certain employees meeting qualifying criteria. The Company recognized $9 of accelerated stock-based compensation charges in Selling and administrative expenses in the fiscal 2014 year-to-date as a result of the deemed change-in-control.

Stock Options

In May 2013, the Company granted non-qualified stock options to certain employees under the Company’s 2012 Stock Plan. The Company granted 9 stock options with a weighted average grant date fair value of $2.78 per share, which vest over a period of three years, as part of a broad-based employee incentive initiative designed to retain and motivate employees across the Company.

On July 17, 2012, the Company’s Board of Directors approved a grant of non-qualified stock options to the Company’s former Chief Executive Officer, and the Leadership Development and Compensation Committee of the Board approved grants of non-qualified stock options to certain employees, under the Company’s 2012 Stock Plan. The Company granted 8 stock options with a weighted average grant date fair value of $0.98 per share as part of a broad-based employee incentive initiative designed to retain and motivate employees across the Company as it pursues its business transformation strategy. These options vest over three years, with certain of these options having immediately vested as a result of the deemed change-in-control described above.

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.

	November 30, 2013			December 1, 2012
Dividend yield		—	%		2.1	%
Volatility rate		49.3 – 51.3	%		60.5 – 61.2	%
Risk-free interest rate		0.6 – 1.0	%		0.6	%
Expected life		4.0 – 6.0 years			4.5 – 5.0 years

Restricted Stock Awards

In April 2012, the Company granted 1 shares of restricted stock awards (“RSAs”) to certain employees under the 2012 Stock Plan in connection with Company’s fiscal 2012 bonus plan at a fair value of $6.15 per share. The RSAs vest over a three year period from the date of grant.