Share-Based Compensation
 9 Months Ended
Nov. 25, 2016
Share-based Compensation [Abstract]  
Share-Based Compensation
SHARE-BASED COMPENSATION
Performance Units
In Q1 2017, we awarded 189,800 performance units ("PSUs") to our executive officers. The PSUs awarded are earned after a three-year performance period, from 2017 through 2019, based on achievement of certain total shareholder return results relative to a comparison group of companies, which is a market condition, and, if earned, will be issued in the form of shares of Class A Common Stock. The number of shares that may be earned can range from 0% to 200% of the target amount; therefore, the maximum number of shares that can be issued under these awards is 379,600. These PSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the performance period. We used the Monte Carlo simulation model to calculate the fair value of these PSUs on the date of grant. The model resulted in a weighted average grant date fair value of $16.33 per unit for these PSUs, compared to $24.15 and $23.25 per unit for similar PSUs granted in 2016 and 2015, respectively.
The weighted average grant date fair values were determined using the following assumptions:
 
2017 Awards
2016 Awards
2015 Awards
Three-year risk-free interest rate (1)
0.9
%
0.8
%
0.7
%
Expected term
3 years

3 years

3 years

Estimated volatility (2)
31.2
%
29.4
%
42.2
%
_______________________________________
(1)
Based on the U.S. government bond benchmark on the grant date.
(2)
Represents the historical price volatility of the Company’s common stock for the three-year period preceding the grant date.
The total PSU expense and associated tax benefit for all outstanding awards for the three and nine months ended November 25, 2016 and November 27, 2015 are as follows:
 
Three Months Ended
Nine Months Ended
Performance Units
November 25,
2016
November 27,
2015
November 25,
2016
November 27,
2015
Expense
$
1.5

 
$
0.6

 
$
4.7

 
$
6.0

 
Tax benefit
0.5

 
0.3

 
1.7

 
2.2

 

As of November 25, 2016, there was $5.3 of remaining unrecognized compensation cost related to nonvested PSUs, which is expected to be recognized over a remaining weighted-average period of 1.5 years.
The PSU activity for the nine months ended November 25, 2016 is as follows:
Maximum Number of Shares That May Be Issued Under Nonvested Units
Total
Weighted-Average
Grant Date
Fair Value per Unit
Nonvested as of February 26, 2016
1,147,844

$
20.66

Granted
379,600

16.33

Nonvested as of November 25, 2016
1,527,444

$
19.59


Restricted Stock Units
During the nine months ended November 25, 2016, we awarded 975,663 restricted stock units ("RSUs"), of which 168,200 were awarded to our executive officers. These RSUs have restrictions on transfer which lapse three years after the date of grant, at which time the units will be issued as unrestricted shares of Class A Common Stock. RSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the requisite service period based on the value of the underlying shares on the date of grant.
The RSU expense and associated tax benefit for all outstanding awards for the three and nine months ended November 25, 2016 and November 27, 2015 are as follows:
 
Three Months Ended
Nine Months Ended
Restricted Stock Units
November 25,
2016
November 27,
2015
November 25,
2016
November 27,
2015
Expense
$
2.5

 
$
2.5

 
$
11.4

 
$
10.9

 
Tax benefit
0.9

 
0.9

 
4.1

 
3.9

 

As of November 25, 2016, there was $11.3 of remaining unrecognized compensation cost related to nonvested RSUs, which is expected to be recognized over a weighted-average period of 1.9 years.
The RSU activity for the nine months ended November 25, 2016 is as follows:
Nonvested Units
Total
Weighted-Average
Grant Date
Fair Value
per Unit
Nonvested as of February 26, 2016
1,638,888

$
18.45

Granted
975,663

14.66

Vested
(167,500
)
15.87

Forfeited
(35,207
)
16.86

Nonvested as of November 25, 2016
2,411,844

$
16.45