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Note 3 - Stock-based Compensation
 9 Months Ended
Feb. 26, 2017
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
3.
Stock-Based Compensation
 
The Company
’s stock-based awards include stock option grants and RSUs. The Company records compensation expense for stock-based awards issued to employees and directors in exchange for services provided based on the estimated fair value of the awards on their grant dates and is recognized over the required service periods
, generally the vesting period.
 
The following table summarizes the stock-based compensation for options and RSUs (in thousands):
 
   
Three Months Ended
    
Nine
Months Ended
  
   
February 26,
2017
    
February 28,
2016
    
February 26,
2017
    
February 28,
2016
  
Options
   $
308
     $
331
     $
907
     $
1,021
  
RSUs
    
761
      
553
      
1,935
      
1,560
  
Total stock-based compensation
   $
1,069
     $
884
     $
2,842
     $
2,581
  
 
The following table summarizes the stock-based compensation by income statement line item (in thousands):
 
   
Three Months Ended
    
Nine Months Ended
  
   
February 26,
2017
    
February 28,
2016
    
February 26,
2017
    
February 28,
2016
  
Cost of sales
   $
124
     $
103
     $
361
     $
301
  
Research and development
    
23
      
22
      
69
      
67
  
Selling, general and administrative
    
922
      
759
      
2,412
      
2,213
  
Total stock-based compensation
   $
1,069
     $
884
     $
2,842
     $
2,581
  
 
The estimated fair value for stock options, which determines the Company
’s calculation of stock-based compensation expense, is based on the Black-Scholes option pricing model. RSUs are valued at the closing market price of the Company’s common stock on the date of grant. The Company uses the straight
-line single option method to calculate and recognize the fair value of stock-based compensation arrangements.
 
As of
February
26,
2017,
there was
$5.8
million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Landec incentive stock plans. Total expense is expected to be recognized over the weighted-average period of
1.7
years for stock options and
1.6
years for restricted stock unit awards.