Cracker Barrel 2015 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2015 Cracker Barrel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

41
for the 60-consecutive calendar days beginning 30 days
prior to and ending 30 days aer the rstbusiness day of the
performance period. is modelalso incorporates the
following ranges of assumptions:
e expected volatility is a blend of implied volatility
based on market-traded options on our stock and historical
volatility of our stock overthe period commensurate with
the three-yearperformance period.
e risk-free interest rate is based on the U.S. Treasury
rate assumption commensuratewith the three-year perfor-
mance period.
e expected dividend yield is based on our current
dividend yield as the best estimateof projected dividend yield
for periods within the three-yearperformance period.
e following assumptions were used in determining the
fair value for the Company’s MSU Grants:
Year Ended
July 31, 2015 August 1, 2014 August 2, 2013
Dividend yield***— — 3.0%
Expected volatility 21% 25% 27%
Risk-freeinterest rate range1.0% 0.7% - 0.8% 0.3%
***Dividendsaccrue on the2014 and 2015 MSU Grants. Dividendswill be
forfeitedfor any 2014 and 2015 MSU Grants that do not vest.
e following table summarizesthe shares that have been
accrued under the 2013 MSU Grants, the 2014 MSU Grants
and2015 MSU Grantsat July 31, 2015:
Shares
2013 MSU Grants53,295
2014 MSU Grants25,829
2015 MSU Grants15,146
Stock Options
Prior to 2012, stock options were granted with an exercise
price equal to the market price of the Company’s stock
on the grant date; those option awards generally vest at a
cumulative rateof 33% per yearbeginning on the rst
anniversary of the grant date and expire ten years from the
date of grant.No stock options were granted in 2013, 2014
or 2015.
A summaryof the Company’s stock option activity as of
July 31, 2015, and changes during 2015 are presentedin the
following table: Weighted-
Average
Weighted- RemainingAggregate
Average Contractual Intrinsic
Fixed OptionsSharesPrice Term Value
Outstanding at August 1, 2014 87,132 $36.75
Granted — —
Exercised(44,753) 37.97
Forfeited — —
Canceled (21,921) 36.95
Outstanding at July 31, 2015 20,458 $33.88 2.08 $2,414
Exercisable20,458 $33.88 2.08 $2,414
e following table summarizesthe total intrinsic values
of options exercisedduring each of the three years:
2015 2014 2013
Total intrinsic values of
options exercised* $4,652 $169 $10,526
*e intrinsic value forstockoptions is dened as the dierence between the
current market value andthe grantprice.
Compensation Expense
e following table highlights the components of share-
based compensation expense for eachof the three years:
2015 2014 2013
Nonvestedstock awards $13,243 $5,762 $15,416
MSU Grants2,967 2,162 2,335
Stock options— — 88
Total compensation expense $16,210 $7,924 $17,839
e following table highlights the total unrecognized
compensation expense related to nonvestedstock and MSU
Grants and the weighted-average periods overwhich the
expense is expected to be recognized as of July 31, 2015:
NonvestedMSU
Stock Grants
Total unrecognized compensation $1,564 $3,604
Weighted-average period in years1.56 1.66