Amendment No. 3 to Form S-1 Table of Contents AB ACQUISITION LLC AND SUBSIDIARIES Notes to Consolidated Financial Statements The remaining 50% of the incentive units have performance-based vesting terms, which vest 25% on the last day of Safeway's fiscal year for each of the following four fiscal years, subject to specific performance targets. For the units subject to a service period, the estimated total fair value is charged to compensation expense on a straight-line basis over the vesting of four years and vest 25% on each of the subsequent four anniversaries of such date. For the units subject to a performance condition, compensation cost will be recognized on a graded vesting basis when probable and based on the estimated quantity of awards for which it is probable that the performance conditions will be achieved. All performance-based units that have not vested as of the fiscal year commencing in 2018 shall terminate. Upon the consummation of an IPO. the unvested units subject to performance conditions are converted into units subject to a continuation of service condition. Incentive unit activity for each period was as follows: Units unvested at February 20, 2014 Investor Incentive units Series 1 incentive units Weighted average grant date fair value per unit — $ — Granted 14,907.871 3,350.083 22.11 Vested (14,907,871) — 22.11 Forfeited — — _ Units unvested at February 28, 2015 3,350,083 22.11 The aggregate fair value and grant date of Investor incentive units that vested in fiscal 2014 was $330.0 million. As of February 28. 2015, the Company had yet to recognize $71.9 million in unrecognized compensation cost related to unvested equity-based compensation arrangements granted under the Company's Series-1 Incentive Unit Plan. Member Loans to Employees Upon termination of the Company's LTIPs, certain executives were entitled to the right to receive a loan from the Company to purchase additional ABS and NAI units. Emplo