Jack In The Box 2009 Annual Report Download - page 68

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Table of Contents


the stock associated with these awards in November 2009. In 2008 and 2007, 68,939 and 146,116 awards vested with a fair value of
$0.9 million and $4.7 million, respectively.
Nonvested stock awards — We generally issued nonvested stock awards to certain executives under our share ownership
guidelines. Effective February 2008, we are no longer issuing these awards which have been replaced by grants of nonvested stock units.
Our nonvested stock awards vest upon retirement or termination based upon years of service or ratably over a three-year period for non-
ownership grants as provided in the award agreements. These awards are amortized to compensation expense over the estimated vesting
period based upon the fair value of our common stock on the award date.
The following is a summary of nonvested stock award activity for fiscal 2009:



 
Nonvested stock awards outstanding at September 28, 2008 549,485 $ 14.16
Released (121,200) 10.99
Forfeited (2,000) 20.63
Nonvested stock awards outstanding at September 27, 2009 426,285 $ 15.04
Vested at September 27, 2009 94,051 $ 12.46
As of September 27, 2009, there was approximately $3.6 million of total unrecognized compensation cost related to nonvested stock
awards, which is expected to be recognized over a weighted-average period of 5.7 years. During 2008, we granted 64,545 shares of
nonvested stock with a grant date fair value of $26.35. No shares of nonvested stock were granted in 2009 or 2007. In 2009, 2008 and
2007, the total grant date fair value of shares released was $1.3 million, $0.04 million and $1.1 million, respectively.
Nonvested stock units — In February 2009, the Board of Directors approved the issuance of a new type of stock award, nonvested
stock units. Nonvested stock units will replace nonvested stock awards previously issued to certain executives under our share
ownership guidelines and annual option grants previously granted to our non-management directors. Our nonvested stock units vest upon
retirement or termination based upon years of service. No such units were vested as of September 27, 2009. These awards are amortized
to compensation expense over the estimated vesting period based upon the fair value of our common stock on the award date.
The following is a summary of nonvested stock unit activity for fiscal 2009:



 
Nonvested stock units outstanding at September 28, 2008 — $ —
Granted 61,854 21.46
Nonvested stock units outstanding at September 27, 2009 61,854 $ 21.46
As of September 27, 2009, there was approximately $0.5 million of total unrecognized compensation cost related to nonvested stock
units, which is expected to be recognized over a weighted-average period of 2.4 years.
Non-management directors’ deferred compensation — All awards outstanding under our directors’ deferred compensation plan
are accounted for as equity-based awards and deferred amounts are converted into stock equivalents at the then-current market price of
our common stock. During fiscal 2009 and 2008, 59,949 and 26,627 shares of common stock were issued in connection with director
retirements having a grant date fair value of $1.6 million, and $0.4 million, respectively. No deferrals were settled in 2007.
F-29