Chipotle 2008 Annual Report Download - page 52

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The tables below summarize the option and SAR activity under the Plan (in thousands, except years and per
share data):
2008 2007 2006
Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
Outstanding, beginning of year ................... 965 $ 33.87 940 $21.26 374 $18.67
Granted ..................................... 332 $102.67 275 $63.89 774 $22.00
Exercised .................................... (22) $ 21.21 (207) $18.68 (150) $18.33
Forfeited .................................... (61) $ 42.96 (43) $23.15 (58) $22.01
Outstanding, end of year ........................ 1,214 $ 52.49 965 $33.87 940 $21.26
Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Years of
Contractual
Life
Aggregate
Instrinsic
Value
Outstanding as of December 31, 2008 ......................... 1,214 $52.49 4.8 $25,110
Vested and expected to vest as of December 31, 2008(1) ........... 1,208 $52.30 4.8 $25,110
Exercisable as of December 31, 2008 .......................... 45 $34.50 3.0 $ 1,408
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total
outstanding options.
Generally, the options and SARs vest over three years and expire after seven years. The total intrinsic value
of options and SARs exercised during the years ended December 31 2008, 2007 and 2006 was $893, $17,749 and
$4,947. Unearned compensation as of December 31, 2008 was $7,364 for options and SAR awards. The
remaining vesting period as of December 31, 2008 for unvested options and SAR awards was generally between
0.1 and 2.2 years.
A summary of non-vested stock award activity under the Plan is as follows (in thousands, except per share
data):
2008 2007
Shares
Grant Date
Fair Value Shares
Grant Date
Fair Value
Outstanding, beginning of year ................................. 123 $64.75 —
Granted ................................................... 109 $87.36 123 $64.75
Forfeited ................................................... (3) $99.19 —
Outstanding, end of year ...................................... 229 $75.06 123 $64.75
At December 31, 2008, 226 of the outstanding non-vested stock awards were subject to both service and
performance conditions based on reaching specified cumulative operating income levels during certain
timeframes. During 2008, the Company replaced 120 previously issued non-vested time-based stock awards with
an equal number of performance-contingent restricted stock. The modification did not result in the recognition of
any additional stock based-compensation. Unearned compensation as of December 31, 2008 was $9,073 for
unvested stock awards. The remaining vesting period as of December 31, 2008 for unvested stock awards was
generally between 0.3 and 2.6 years.
In 2005, the Company granted 153 shares of non-vested class B common stock with a grant date fair value
of $19.50 per share (a related party contemporaneous valuation) which vested evenly over three years. The fair
value of shares vested during the years ended December 31, 2008, 2007 and 2006 was $5,124, $3,053 and
$2,786.
50
Annual Report