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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
70
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 25 percent after two years from the date of grant and thereafter
25 percent each year for the next three years and have a six-year term. The Company uses historical data to estimate pre-vesting
forfeiture rates. As of December 29, 2015, there was no unrecognized compensation cost related to non-vested options. For fiscal
2015, fiscal 2014, and fiscal 2013, stock-based compensation expense related to stock options charged to general and administrative
expenses was $0.2 million, $0.1 million, and $0.2 million, respectively.
The following table summarizes the Company’s stock option activity under its stock-based compensation plans during fiscal 2015:
Shares
(in
thousands)
Weighted
Average
Exercise
Price
Weighted
Average
Contractual
Term
Remaining
(Years)
Aggregate
Intrinsic
Value (1)
(in
thousands)
Outstanding at December 30, 2014 . . . . . . . . . . . . . . . . . . . 16 $ 120.97
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 174.80
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 67.94 470
Cancelled. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Outstanding at December 29, 2015 . . . . . . . . . . . . . . . . . . . 15 $ 146.79 2.9 726
Exercisable at December 29, 2015 . . . . . . . . . . . . . . . . . . . 15 $ 146.79 2.9 $ 726
(1) Intrinsic value for activities other than exercises is defined as the difference between the grant price and the market value on
the last day of fiscal 2015 of $197.08 for those stock options where the market value is greater than the exercise price. For
exercises, intrinsic value is defined as the difference between the grant price and the market value on the date of exercise.
Cash received from the exercise of stock options in fiscal 2015, fiscal 2014, and fiscal 2013 was $0.3 million, $1.1 million, and
$0.6 million, respectively. Windfall tax benefits realized from exercised stock options in fiscal 2015, fiscal 2014, and fiscal 2013
were $2.1 million, $3.1 million, and $8.1 million, respectively, and were included as cash flows from financing activities in the
Consolidated Statements of Cash Flows.
A SSAR is an award that allows the recipient to receive common stock equal to the appreciation in the fair market value of the
Company’s Class A common stock between the date the award was granted and the conversion date for the number of shares
vested. SSARs 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, SSARs generally vest 25 percent after two years from the date of grant and thereafter 25
percent each year for the next three years and have a six-year term. As of December 29, 2015, the total unrecognized compensation
cost related to non-vested SSARs was $1.9 million, and is expected to be recognized over a weighted-average period of
approximately 2.8 years. The Company uses historical data to estimate pre-vesting forfeiture rates. For fiscal 2015, fiscal 2014,
and fiscal 2013, stock-based compensation expense related to SSARs was $0.5 million, $0.2 million, and $0.2 million, respectively,
and was charged to general and administrative expenses in the Consolidated Statements of Income.
The following table summarizes the Company’s SSAR activity under its stock-based compensation plan during fiscal 2015:
Shares
(in thousands)
Weighted
Average
Conversion
Price (1)
Weighted Average
Contractual Term
Remaining
(Years)
Aggregate
Intrinsic
Value (2)
(in thousands)
Outstanding at December 30, 2014 . . . . . . . . . . 29 $ 144.63 4.0 $ 885
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 174.25
Converted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 89.71
Cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 152.14
Outstanding at December 29, 2015 . . . . . . . . . . 57 $ 165.54 4.5 $ 1,814
Convertible at December 29, 2015 . . . . . . . . . . . 7 $ 141.04 2.7 $ 399
(1) Conversion price is defined as the price from which SSARs are measured and is equal to the market value on the date of
issuance.