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Share-Based Compensation | 3 Months Ended
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May 28, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Share-based Payment Arrangement | SHARE-BASED COMPENSATION Performance Units We have issued performance units (“PSUs”) to certain employees which are earned over a three-year performance period based on performance conditions established annually by the Compensation Committee within the first three months of the applicable fiscal year. The PSUs are then modified based on achievement of certain total shareholder return results relative to a comparison group of companies, which is a market condition. When the performance conditions for a fiscal year are established, or if the performance conditions involve a qualitative assessment and such assessment has been made, one-third of the PSUs issued are considered granted. Therefore, each of the three fiscal years within the performance period is considered an individual tranche of the award (referred to as "Tranche 1," "Tranche 2" and "Tranche 3," respectively). As of May 28, 2021, the following PSUs have been issued and remained outstanding: •448,300 PSUs to be earned over a three-year performance period of 2022 through 2024 (the "2022 PSUs"), •529,500 PSUs to be earned over a three-year performance period of 2021 through 2023 (the "2021 PSUs") and •296,600 PSUs to be earned over a three-year performance period of 2020 through 2022 (the "2020 PSUs"). In Q1 2022, the performance conditions were established for Tranche 1 of the 2022 PSUs, Tranche 2 of the 2021 PSUs and Tranche 3 of the 2020 PSUs. Accordingly, one-third of each of these PSUs were considered granted in Q1 2022. In Q1 2021, the performance conditions were established for Tranche 1 of the 2021 PSUs and Tranche 2 of the 2020 PSUs. These performance conditions involved a qualitative assessment which was made by the Compensation Committee in Q4 2021. Accordingly, one-third of each of these PSUs were considered granted in Q4 2021. In Q1 2020, the performance conditions were established for Tranche 1 of the 2020 PSUs. Accordingly, one-third of the 2020 PSUs were considered granted in Q1 2020. Once granted, the PSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the remaining performance period. We used the Monte Carlo simulation model to calculate the fair value of the market conditions on the respective grant dates, which resulted in a fair value of $6.1, $3.7 and $1.6 for the PSUs with market conditions granted in 2022, 2021 and 2020, respectively. The Monte Carlo simulation was computed using the following assumptions:
| FY22 Award | FY21 Award | FY20 Award
Tranche 1 | Tranche 2 | Tranche 1 | Tranche 3 | Tranche 2 | Tranche 1
Risk-free interest rate (1) | 0.3 | % |  | 0.2 | % |  | 0.2 | % |  | 0.1 | % |  | 0.1 | % |  | 2.3 | % |
Expected term | 3 years |  | 2 years |  | 2 years |  | 1 year |  | 1 year |  | 3 years |
Estimated volatility (2) | 53.5 | % |  | 61.3 | % |  | 58.1 | % |  | 56.1 | % |  | 74.1 | % |  | 32.5 | % |
_______________________________________ (1)Based on the U.S. Government bond benchmark on the grant date. (2)Represents the historical price volatility of our Company’s Class A Common Stock for the three-year period. The total PSU expense and associated tax benefit for all outstanding awards for the three months ended May 28, 2021 and May 29, 2020 are as follows:
| Three Months Ended |  |
Performance Units | May 28, 2021 | May 29, 2020 |  |  |  |
Expense | $ | 5.2 |  |  | $ | 0.2 |  |  |  |  |  |  |  |  |  |
Tax benefit | 1.3 |  |  | 0.1 |  |  |  |  |  |  |  |  |  |
As of May 28, 2021, there was $1.3 of remaining unrecognized compensation expense related to granted nonvested PSUs, which is expected to be recognized over a remaining weighted-average period of 1.9 years. The PSU activity for the three months ended May 28, 2021 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, 2021 | 898,156 |  | $ | 14.06 |
Granted | 1,019,517 |  | 14.38 |
Nonvested as of May 28, 2021 | 1,917,673 |  | $ | 14.23 |
Restricted Stock Units During the three months ended May 28, 2021, we awarded 837,013 restricted stock units ("RSUs") to certain employees. RSUs have restrictions on transfer which lapse three years after the date of grant, at which time the RSUs 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 shares on the date of grant. The total RSU expense and associated tax benefit for all outstanding awards for the three months ended May 28, 2021 and May 29, 2020 are as follows:
| Three Months Ended |  |
Restricted Stock Units | May 28, 2021 | May 29, 2020 |  |  |  |
Expense | $ | 7.7 |  |  | $ | 7.6 |  |  |  |  |  |  |  |  |  |
Tax benefit | 1.9 |  |  | 2.3 |  |  |  |  |  |  |  |  |  |
As of May 28, 2021, there was $10.8 of remaining unrecognized compensation expense related to nonvested RSUs, which is expected to be recognized over a weighted-average period of 2.1 years. The RSU activity for the three months ended May 28, 2021 is as follows:
Nonvested Units | Total | Weighted-Average Grant Date Fair Value per Unit
Nonvested as of February 26, 2021 | 2,285,965 |  | $ | 12.11 |
Granted | 837,013 |  | 14.45 |
Forfeited | (12,856) |  | 13.38 |
Nonvested as of May 28, 2021 | 3,110,122 |  | $ | 12.73 |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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