Cracker Barrel 2015 Annual Report Download - page 42

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Types of Share-Based Awards
NonvestedStock
Nonvestedstock awards consist of the Company’s common
stock and generally vest over 1–3 years. Generally, the fair
value of eachnonvestedstock awardis equal to the market
price of the Company’s stock at the dateof grant reduced by
the present value of expected dividends to be paid prior to
the vesting period, discounted using an appropriaterisk-free
interest rate.Other nonvestedstock awards accrue divi-
dends and their fair value is equal to the market price of the
Company’sstock at the dateof the grant. Dividends are
forfeited for any nonvestedstock awards that do not vest.
e Company’s nonvestedstock awards include its
long-term performance planswhich were established by the
Commiee for the purpose of rewarding certain ocers
with shares of the Company’s common stock if the Company
achieved certain performance targets.e stock awards
under the long-term performance plansare calculated
or estimated based on achievement of nancial perfor-
mance measures.
e following table summarizesthe performance
periodsandvesting periods for the Company’s nonvested
stock awards under its long-term performance plansat
July 31, 2015:
Long-TermPerformance Plan
(“LTPP”) Performance Period Vesting Period (in Years)
2015 LTPP 2015 – 2016 2 or 3
2014 LTPP 2014 – 2015 2 or 3
e following table summarizesthe shares that have been
accrued under the 2015 LTPP and 2014 LTPP at July 31, 2015:
2015 LTPP 49,072
2014 LTPP 37,126
A summaryof the Company’s nonvestedstock activity
as of July 31, 2015, and changes during 2015 are presentedin
the following table: Weighted-
Average
Grant Date
NonvestedStock SharesFair Value
Unvested at August 1, 2014 64,065 $68.25
Granted 74,089 101.58
Vested(98,991) 82.35
Forfeited — —
Unvested at July 31, 2015 39,163 $95.66
e following table summarizesthe total fair value
of nonvestedstock that vested for each of the three years:
2015 2014 2013
Total fair value of nonvestedstock $8,152 $17,417 $7,445
Performance-Based Market Stock Units
e number of MSU Grantsthat will ultimately be awarded
andwill vest at the end of the applicable three-year
performance period for each annual plan is based on total
shareholder return, which is dened as the changein
the Company’s stock price plus dividends paid during the
performance period. e number of sharesawarded at
the end of the performance period will vary in directpropor-
tion to a target number of shares set at the beginning of the
period, up to a maximumof 150% of target, based on the
changein the Company’s cumulative total shareholder return
over the performance period. e probability of the actual
sharesexpected to be earned is considered in the grant date
valuation; therefore, the expense will not be adjusted to
reectthe actual units earned. In addition to a service
requirement, the vesting of the MSU Grantsis also subject to
the achievement of a specied level of operating income
during the performance period. If this performance goalis
not met, no MSU Grantswill be awarded andno compen-
sation expense will be recorded.
e fair value of the MSU Grants is determined using the
Monte-Carlo simulation model, which simulatesa range
of possible future stock prices andestimates the probabilities
of the potential payouts.is model uses the average prices
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