Cracker Barrel 2010 Annual Report Download - page 55

Other Share-Based Awards
In 2009, the Company issued to its Executive Vice President
and Chief Financial Ocer, options to purchase 25,000
shares of the Company’s common stock and 25,000 non-
vested stock grants. e stock options and 16,666 of the
nonvested stock grants vest over three years and 8,334 of the
nonvested stock grants vest over a two-year period. At July
30, 2010, the entire 50,000 share award was outstanding. e
stock options and stock awards were made as “inducement
grants” outside of the Company’s plans under NASDAQ
rules that allow such awards without shareholder approval.
Stock Options
A summary of the Company’s stock option activity as of
July 30, 2010, and changes during 2010 is presented in the
following table:
(Shares in thousands)
Weighted-
Average
Weighted- Remaining Aggregate
Average Contractural Intrinsic
Fixed Options Shares Price Term Value
Outstanding at July 31, 2009 2,895 $ 32.01
Granted 248 31.58
Exercised (1,292) 29.59
Forfeited (3) 42.33
Canceled (43) 31.03
Outstanding at July 30, 2010 1,805 $ 33.68 5.77 $ 27,608
Exercisable 1,275 $ 34.88 4.66 $ 17,987
The weighted-average grant-date fair values of options
granted during 2010, 2009 and 2008 were $12.03, $9.33 and
$11.99, respectively. e intrinsic value for stock options is
dened as the dierence between the current market value
and the grant price. e total intrinsic values of options
exercised during 2010, 2009 and 2008 were $21,602, $3,725
and $785, respectively.
As of July 30, 2010, there was $3,276 of total unrecognized
compensation cost related to stock options that is expected
to be recognized over a weighted-average period of 1.72 years.
Nonvested Stock
A summary of the Company’s nonvested stock activity as of
July 30, 2010, and changes during 2010 is presented in the
following table:
(Shares in thousands)
Weighted-
Average
Grant Date
Nonvested Stock Shares Fair Value
Unvested at July 31, 2009 356 $ 26.28
Granted 220 47.27
Vested (85) 31.20
Forfeited — —
Unvested at July 30, 2010 491 $ 34.89
e total fair value of nonvested stock that vested during
2010, 2009 and 2008 was $2,667, $3,829 and $7,111,
respectively. As of July 30, 2010, there was $4,741 of total
unrecognized compensation cost related to nonvested stock
that is expected to be recognized over a weighted-average
period of 1.73 years.
Compensation Cost
Compensation cost for share-based payment arrangements
was $3,194, $3,680 and $4,673, respectively, for stock
options in 2010, 2009 and 2008. Compensation cost for
nonvested and restricted stock was $9,999, $3,266 and
$3,818, respectively, in 2010, 2009 and 2008. Share-based
compensation is recorded in general and administrative
expenses in the Consolidated Statement of Income. e
total income tax benet recognized in the Consolidated
Statement of Income for 2010, 2009 and 2008 for share-
based compensation arrangements was $3,470, $937 and
$2,564, respectively.
During 2010, cash received from the exercise of share-
based compensation awards and the corresponding issuance
of 1,362,096 shares was $37,460. e excess tax benet
realized upon exercise of share-based compensation awards
was $5,063.
13 EMPLOYEE SAVINGS PLANS
e Company sponsors a qualied dened contribution
retirement plan (“Plan I”) covering salaried and hourly
employees who have completed ninety days of service and
have aained the age of twenty-one. Plan I allows eligible
employees to defer receipt of up to 16% of their compensa-
tion, as dened in the plan. e Company also sponsors a
non-qualied dened contribution retirement plan (“Plan II”)
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