Chili's 2007 Annual Report Download - page 81

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(a) Stock Options
Expense related to stock options issued to eligible employees under the Plans is recognized using a
graded-vesting schedule over the vesting period. For options granted after the adoption of SFAS 123R on
June 30, 2005, expense is recognized to the date on which retirement eligibility is achieved, if shorter than
the vesting period. Stock options generally vest over a period of 1 to 4 years and have contractual terms to
exercise of 8 to 10 years.
Transactions during fiscal 2007 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 28, 2006 . . . 10,606 $20.50
Granted ........................ 752 25.85
Exercised ....................... (3,388) 19.57
Forfeited ........................ (382) 22.76
Options outstanding at June 27, 2007 . . . 7,588 $21.34 5.99 $60,362
Options exercisable at June 27, 2007 .... 4,927 $19.83 5.38 $46,596
At June 27, 2007, unrecognized compensation expense related to stock options totaled approximately
$3.9 million and will be recognized over a weighted average period of 2.2 years. The intrinsic value of
options exercised totaled approximately $38.8 million, $23.3 million and $44.5 million during fiscal 2007,
2006 and 2005, respectively.
(b) Restricted Share Awards
Restricted share awards consist of performance shares, restricted stock and restricted stock units.
Performance shares and restricted stock units issued to eligible employees under the Plans vest in full on
the third anniversary of the date of grant and the 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.
Transactions during fiscal 2007 were as follows (in thousands, except fair values):
Number Weighted
of Average
Restricted Fair Value
Share Per
Awards Award
Restricted share awards outstanding at June 28, 2006 ........ 1,437 $23.34
Granted ......................................... 1,148 21.13
Vested .......................................... (74) 24.47
Forfeited ........................................ (124) 23.81
Restricted share awards outstanding at June 27, 2007 ........ 2,387 $22.22
At June 27, 2007, unrecognized compensation expense related to restricted share awards totaled
approximately $20.0 million and will be recognized over a weighted average period of 2.1 years.
F-31