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Share Based Compensation
 12 Months Ended
Mar. 30, 2013
Share Based Compensation [Abstract]  
Share Based Compensation

NOTE 10 – SHARE BASED COMPENSATION

 

Monro currently grants stock option awards under the 2007 Incentive Stock Option Plan (the “2007 Plan”). The 2007 Plan was authorized by the Board of Directors in June 2007, initially reserving 873,000 shares (as retroactively adjusted for stock splits) of Common Stock for issuance to eligible employees and all non-employee directors. The 2007 Plan was approved by shareholders in August 2007. Prior to fiscal 2008, Monro had options outstanding under three other stock option plans: the 1994 Non-Employee Directors Stock Option Plan (the “1994 Plan”) (which was approved by shareholders in August 1995); the 1998 Incentive Stock Option Plan (the “1998 Plan”) (which was approved by shareholders in August 1999); and the 2003 Non-Employee Directors Stock Option Plan (the “2003 Plan”) (which was approved by shareholders in August 2003), collectively the “Prior Plans.” Upon shareholder approval of the 2007 Plan, all shares of Common Stock available for award under the 1998 and 2003 Plans were transferred to, and made available for award under the 2007 Plan. The 1994 Plan had no options available for grant upon adoption of the 2007 Plan. No further option grants may be made under the Prior Plans, although outstanding awards under the Prior Plans will remain outstanding in accordance with the terms of those plans and the stock option agreements entered into under those plans.

 

The 1994 Plan had a total of 675,345 common shares authorized for issuance; the 1998 Plan had a total of 4,016,250 shares authorized for issuance; and the 2003 Plan had a total of 315,000 shares authorized for issuance (all as retroactively adjusted for stock splits). Upon authorization of the 2007 Plan by shareholders, 628,662 shares (as retroactively adjusted for stock splits) were transferred from the 1998 and 2003 Plans into the 2007 Plan, bringing the total authorized shares to 1,501,662 (as retroactively adjusted for stock splits). In addition, in May 2010, the Compensation Committee of the Board of Directors authorized an additional 1,500,000 shares of common stock for grant under the 2007 Plan (as retroactively adjusted for stock splits), which were approved by shareholders in August 2010.

 

Generally, employee options vest within the first five years of their term, and have a duration of six to ten years. Outstanding options are exercisable for various periods through October 2019.

 

A summary of changes in outstanding stock options is as follows:

   Weighted   
   Average   
   Exercise  Options 
   Price Outstanding 
       
At March 27, 2010 $ 12.96 2,342,448 
Granted $ 31.51 788,027 
Exercised $ 9.97 (569,063) 
Canceled $ 18.22 (35,734) 
At March 26, 2011 $ 19.35 2,525,678 
Granted $ 32.86 173,075 
Exercised $ 14.47 (816,594) 
Canceled $ 21.10 (30,571) 
At March 31, 2012 $ 22.75 1,851,588 
Granted $ 35.19 511,600 
Exercised $ 12.54 (472,709) 
Canceled $ 29.99 (26,365) 
At March 30, 2013 $ 28.66 1,864,114 

The total shares exercisable at March 30, 2013, March 31, 2012 and March 26, 2011 was 984,917, 1,129,513 and 1,595,639, respectively. There were 297,179 shares available for grant at March 30, 2013.

 

The weighted average contractual term of all options outstanding at March 30, 2013 and March 31, 2012 was 3.8 years and 3.6 years, respectively. The aggregate intrinsic value of all options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) outstanding at March 30, 2013 and March 31, 2012 was $20.6 million and $34.7 million, respectively.

 

The weighted average contractual term of all options exercisable at March 30, 2013 and March 31, 2012 was 3.4 years and 3.1 years, respectively. The aggregate intrinsic value of all options exercisable at March 30, 2013 and March 31, 2012 was $14.7 million and $26.3 million, respectively.

 

A summary of the status of and changes in nonvested stock options granted is as follows

  Weighted Average
  Grant-Date
  Fair Value
 Options(per Option)
   
Non-vested at March 27, 2010670,498$4.49
Granted788,027$8.58
Vested(497,655)$4.73
Canceled(30,831)$5.57
Non-vested at March 26, 2011930,039$7.83
Granted173,075$8.41
Vested(357,697)$7.54
Canceled(23,342)$6.62
Non-vested at March 31, 2012722,075$8.16
Granted511,600$8.67
Vested(332,566)$7.98
Canceled(21,912)$8.26
Non-vested at March 30, 2013879,197$8.52

The following table summarizes information about fixed stock options outstanding at March 30, 2013:

 

 Options Outstanding Options Exercisable
    WeightedWeighted  Weighted
    AverageAverage  Average
Range of Shares RemainingExercise SharesExercise
Exercise Prices Under Option LifePrice Under OptionPrice
         
$ 6.60 - $18.05 475,275 3.66$15.15 439,709$14.91
$18.06 - $33.62 455,364 3.15$29.21 223,708$28.89
$33.63 - $35.30 377,000 5.48$33.94 70,375$35.18
$35.31 - $44.59 556,475 3.39$36.16 251,125$35.40

During the fiscal years ended March 30, 2013, March 31, 2012 and March 26, 2011, the fair value of awards vested under Monro's stock plans was $2.7 million, $2.7 million and $2.4 million, respectively.

 

The aggregate intrinsic value is based on Monro's closing stock price of $39.71, $41.49 and $31.78 as of the last trading day of the periods ended March 30, 2013, March 31, 2012 and March 26, 2011, respectively. The aggregate intrinsic value of options exercised during the fiscal years ended March 30, 2013, March 31, 2012 and March 26, 2011 was $10.6 million, $17.6 million and $9.4 million, respectively. As of March 30, 2013, March 31, 2012 and March 26, 2011, there was $6.0 million, $4.9 million and $6.4 million, respectively, of unrecognized compensation expense related to non-vested fixed stock options that is expected to be recognized over a weighted average period of approximately three years, three years and four years, respectively.

 

Cash received from option exercises under all stock option plans was $3.0 million, $3.1 million and $5.1 million for the fiscal years ended March 30, 2013, March 31, 2012 and March 26, 2011, respectively. The actual tax benefit realized for the tax deductions from option exercises was $2.8 million, $5.3 million and $3.5 million for the fiscal years ended March 30, 2013, March 31, 2012 and March 26, 2011, respectively.

 

Monro issues new shares of Common Stock upon the exercise of stock options.