Cracker Barrel 2006 Annual Report Download - page 64

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A summary of the Company’s stock option activity
as of July 28, 2006, and changes during 2006 is
presented in the following table:
(Shares in thousands)
Weighted-
Average
Weighted- Remaining Aggregate
Average Contractual Intrinsic
Fixed Options Shares Price Term Value
Outstanding at
July 29, 2005 4,388 $27.91
Granted 810 35.17
Exercised (1,055) 26.22
Forfeited/Expired (259) 32.60
Outstanding at
July 28, 2006 3,884 $29.57 6.11 $20,136
Exercisable 2,463 $25.61 4.70 $20,134
The weighted-average grant-date fair value of
options granted during 2006 was $10.93. The intrinsic
value for stock options is defined as the difference
between the current market value and the grant price.
The total intrinsic value of options exercised during
2006 was $17,055.
Restricted stock grants consist of the Company’s
common stock and generally vest over 2-5 years. All
restricted stock grants are time vested except the
restricted stock grants of one executive that also are
based upon Company performance against a specified
annual increase in earnings before interest, taxes,
depreciation, amortization and rent. Generally, the fair
value of each restricted stock grant is equal to the
market price of the Company’s stock at the date of
grant reduced by the present value of expected divi-
dends to be paid prior to the vesting period,
discounted using an appropriate risk-free interest rate.
Certain restricted stock grants accrue dividends
and their fair value is equal to the market price of the
Company’s stock at the date of the grant.
A summary of the Company’s restricted stock
activity as of July 28, 2006, and changes during 2006
is presented in the following table:
(Shares in thousands)
Weighted-
Average
Grant Date
Restricted Stock Shares Fair Value
Unvested at July 29, 2005 173 $38.42
Granted 129 36.16
Vested — —
Forfeited 33 35.55
Unvested at July 28, 2006 269 $36.74
As of July 28, 2006, there was $17,162 of total
unrecognized compensation cost related to unvested
share-based compensation arrangements that is
expected to be recognized over a weighted-average
period of 2.10 years. No restricted stock grants vested
during 2006.
During 2006, cash received from options exercised
was $27,283 and the actual tax benefit realized
for the tax deductions from stock options exercised
totaled $6,441.
9COMMON STOCK
Pursuant to the Omnibus Plan, the Company granted
81,525, 165,000 and 7,500 shares of restricted stock
during 2006, 2005 and 2004, respectively, to certain
individuals as targeted retention or new hire grants as
well as the annual grant to non-employee members
of the Company’s Board of Directors. 28,125 shares of
restricted stock granted during 2006 were forfeited
during 2006. The Company’s compensation expense,
net of forfeitures, for these restricted shares was
$2,098, $494 and $116 in 2006, 2005 and 2004,
respectively. The Committee established the FY04
Revenue Growth and Return on Capital Transitional
Incentive Plan (“Transitional LTI”) pursuant to the
Omnibus Plan, for the purpose of rewarding certain
executive officers for company financial performance
during 2004. The Transitional LTI plan was earned
during 2004 based on the Company’s achievement of
qualified financial performance measures. The
Company’s compensation expense during 2004 for
this award was $424. The Company issued 12,761
unrestricted shares of common stock for this award
in 2005.
The Committee established the FY2005 and FY2006
Mid-Term Incentive and Retention Plans (“2005
MTIRP” and “2006 MTIRP”, respectively) pursuant to
the Omnibus Plan for the purpose of rewarding
certain officers. The 2005 MTIRP award was calculated
during 2005 based on achievement of qualified
financial performance measures, but restricted until
vesting occurs on the last day of 2007. The 2006
MTIRP award was calculated during 2006 based on
achievement of qualified financial performance
measures, but restricted until vesting occurs on the
last day of 2008. The awards will be paid in the form
of either 50% restricted stock and 50% cash or 100%