Chipotle 2013 Annual Report Download - page 55

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The tables below summarize the option and SOSAR activity under the stock incentive plans (in thousands,
except years and per share data):
2013 2012 2011
Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
Outstanding, beginning of year .... 1,449 $ 274.92 1,486 $ 157.07 1,451 $ 82.56
Granted ...................... 672 $ 320.21 617 $ 371.70 587 $ 268.73
Exercised ..................... (369) $ 176.23 (592) $ 80.31 (536) $ 76.78
Forfeited ...................... (62) $ 329.76 (62) $ 274.25 (16) $ 173.05
Outstanding, end of year ......... 1,690 $ 312.44 1,449 $ 274.92 1,486 $ 157.07
Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Years of
Contractual
Life
Aggregate
Intrinsic Value
Outstanding as of December 31, 2013 ................. 1,690 $ 312.44 5.1 $ 372,475
Vested and expected to vest as of December 31, 2013 ..... 1,647 $ 312.04 5.1 $ 363,561
Exercisable as of December 31, 2013 .................. 258 $ 210.85 3.8 $ 83,019
The SOSARs granted during 2013 include 191 SOSARs that contain performance conditions. The total
intrinsic value of options and SOSARs exercised during the years ended December 31, 2013, 2012 and 2011 was
$91,178, $183,097 and $113,752. Unearned compensation as of December 31, 2013 was $31,912 for SOSAR
awards, and is expected to be recognized over a weighted average period of 1.3 years.
A summary of non-vested stock award activity under the stock incentive plans is as follows (in thousands,
except per share data):
2013 2012 2011
Shares
Grant Date
Fair Value Shares
Grant Date
Fair Value Shares
Grant Date
Fair Value
Outstanding, beginning of year ........ 120 $ 218.34 207 $ 153.40 205 $ 148.22
Granted ........................... 68 $ 527.45 1 $ 401.56 6 $ 272.28
Vested ............................ (117) $ 215.76 (83) $ 55.92 (3) $ 87.36
Forfeited .......................... — $ — (5) $ 267.23 (1) $ 53.36
Outstanding, end of year .............. 71 $ 520.27 120 $ 218.34 207 $ 153.40
At December 31, 2013, 66 of the outstanding non-vested stock awards were subject to both service and
performance vesting conditions. The quantity of shares that ultimately vest is determined based on the
cumulative cash flow from operations reached during the three year period ending on September 30, 2016. If the
cumulative cash flow from operations during the three year period does not reach a specified level, no shares will
vest. Unearned compensation as of December 31, 2013 was $26,357 for non-vested stock awards the Company
has determined are probable of vesting, and is expected to be recognized over a weighted average period of 2.7
years. The fair value of shares earned as of the vesting date during the year ended December 31, 2013, 2012, and
2011 was $58,941, $31,309, and $961, respectively.
The following table reflects the average assumptions utilized in the Black-Scholes option-pricing model to
value SOSAR awards granted for each year:
2013 2012 2011
Risk-free interest rate ........................................ 0.5% 0.4% 1.6%
Expected life (years) ......................................... 3.4 3.4 3.4
Expected dividend yield ...................................... 0.0% 0.0% 0.0%
Volatility .................................................. 35.4% 39.1% 51.0%
Weighted-average Black-Scholes fair value per share at date of grant . . . $ 82.51 $ 104.97 $ 101.91
53
Annual Report