Panera Bread 2010 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2010 Panera Bread annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

Under the deferred annual bonus match award portion of the 2005 LTIP, eligible participants receive an
additional 50 percent of their annual bonus, which is paid three years after the date of the original bonus payment
provided the participant is still employed by the Company. For fiscal 2010, fiscal 2009, and fiscal 2008,
compensation expense related to the deferred annual bonus match award was $2.0 million, $1.4 million, and
$1.0 million, respectively, and was included in general and administrative expenses in the Consolidated Statements
of Operations.
Stock options under the 2005 LTIP are granted with an exercise price equal to the quoted market value of the
Company’s common stock on the date of grant. In addition, stock options generally vest ratably over a four-year
period beginning two years from the date of grant and have a six-year term. As of December 28, 2010, the total
unrecognized compensation cost related to non-vested options was $1.2 million, which is net of a $0.3 million
forfeiture estimate, and is expected to be recognized over a weighted-average period of approximately 1.9 years.
The Company uses historical data to estimate pre-vesting forfeiture rates. Stock-based compensation expense
related to stock options was as follows for the periods indicated (in thousands):
December 28,
2010
December 29,
2009
December 30,
2008
For the Fiscal Year Ended
Charged to general and administrative expenses(1) . .... $1,510 $2,154 $3,212
Income tax benefit............................. (575) (821) (1,205)
Total stock-based compensation expense, net of tax .... $ 935 $1,333 $2,007
Effect on basic earnings per share ................. 0.03 0.04 0.07
Effect on diluted earnings per share ................ 0.03 0.04 0.07
(1) Net of less than $0.1 million, $0.1 million, and $0.2 million of capitalized compensation cost related to the
acquisition, development, design, and construction of new bakery-cafe locations and fresh dough facilities for
fiscal 2010, fiscal 2009, and fiscal 2008, respectively.
75
PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)