Chili's 2008 Annual Report Download - page 65

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BRINKER INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. STOCK-BASED COMPENSATION (Continued)
Transactions during fiscal 2008 were as follows (in thousands, except option prices):
Weighted
Weighted Average
Average Remaining Aggregate
Number of Exercise Contractual Intrinsic
Options Price Life (Years) Value
Options outstanding at June 27, 2007 . . . 7,588 $21.34
Granted ........................ 651 28.26
Exercised ....................... (274) 19.25
Forfeited ....................... (351) 24.40
Options outstanding at June 25, 2008 . . . 7,614 $21.86 5.16 $(17,062)
Options exercisable at June 25, 2008 . . . 6,315 $20.85 4.90 $ (7,758)
At June 25, 2008, unrecognized compensation expense related to stock options totaled approximately
$2.1 million and will be recognized over a weighted average period of 2.6 years. The intrinsic value of
options exercised totaled approximately $1.5 million, $38.8 million and $23.3 million during fiscal 2008,
2007 and 2006, respectively.
(b) Restricted Share Awards
Restricted share awards consist of performance shares, restricted stock and restricted stock units.
Performance shares and most restricted stock units issued to eligible employees under the Plans generally
vest in full on the third anniversary of the date of grant, while restricted stock units issued to eligible
employees under our career equity plan generally vest upon each employee’s retirement from the
Company. Expense is recognized ratably over the vesting period, or to the date on which retirement
eligibility is achieved, if shorter. Restricted stock and restricted stock units issued to eligible employees
under our long-term incentive plans generally vest one-third per year beginning on the first or third
anniversary of the date of grant. Restricted stock and restricted stock units issued to non-employee
directors under the Plans vest in full on the fourth anniversary of the date of grant and are expensed when
granted. Full or partial vesting of awards may occur upon a change in control (as defined in the Plans), or
upon an employee’s death, disability or involuntary termination.
Transactions during fiscal 2008 were as follows (in thousands, except fair values):
Weighted
Number of Average
Restricted Fair Value
Share Awards Per Award
Restricted share awards outstanding at June 27, 2007 ...... 2,387 $22.22
Granted ...................................... 892 24.76
Vested ....................................... (115) 25.43
Forfeited ...................................... (410) 22.12
Restricted share awards outstanding at June 25, 2008 ...... 2,754 $22.92
F-31