Albertsons 2013 Annual Report Download - page 81

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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:
2013
Dividend yield 1.0 – 2.1%
Volatility rate 42.3 – 61.2%
Risk-free interest rate 0.4 – 0.6%
Expected option life 4.5 – 6.0 years
Restricted Stock Awards
Restricted stock award activity consisted of the following:
Restricted
Stock
(In thousands)
Weighted Average
Grant-Date
Fair Value
Outstanding, February 25, 2012 444 $ 17.96
Granted 1,482 6.05
Lapsed (220) 10.03
Canceled and forfeited (263) 10.19
Outstanding, February 23, 2013 1,443 $ 7.83
On April 24, 2012 the Company granted 1 shares of restricted stock awards to certain employees under the
company’s fiscal 2012 bonus plan at a fair value of $6.15 per share. The restricted stock awards will vest over a
three year period from the date of grant.
Compensation Expense
The components of pre-tax stock-based compensation expense (included primarily in Selling and administrative
expenses in the Consolidated Statements of Operations) and related tax benefits were as follows:
2013 2012 2011
Stock-based compensation $ 13 $ 13 $ 14
Income tax benefits (5) (5) (5)
Stock-based compensation (net of tax) $ 8 $ 8 $ 9
The Company realized excess tax shortfalls of $2 related to stock-based awards during fiscal 2013, 2012 and
2011.
Unrecognized Compensation Expense
As of February 23, 2013, there was $19 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.
On March 20, 2013, in conjunction with the completion of the Tender Offer the Company’s Board of Directors
deemed the completion of the offer a change-in-control for the purposes of the Company’s outstanding stock-based
awards allowing for vesting acceleration under certain stock-based awards. Refer to Note 16 — Subsequent Events
in the accompanying Notes to Consolidated Financial Statements.
79