Harris Teeter 2011 Annual Report Download - page 43

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11. STOCK OPTIONS AND STOCK AWARDS
As of October 2, 2011, the Company had various equity incentive plans, which were approved by the Company’s shareholders
and authorized the issuance of the Company’s common stock pursuant thereto. Currently the Company grants equity awards under
the Ruddick Corporation 2011 Incentive Compensation Plan, which was approved by the Company’s shareholders in February 2011.
After such time, no awards were granted under the Company’s prior equity incentive plans, including without limitation the Ruddick
Corporation 2002 Comprehensive Stock Option and Award Plan (and the Addendum thereto) and the Ruddick Corporation 2000
Comprehensive Stock Option and Award Plan Prior Plans, although outstanding awards previously granted under such prior plans
will continue in effect in accordance with the terms and conditions of those plans. As of October 2, 2011, the Company may grant
additional options or stock awards and performance shares in the amount of 2.6 million shares.
The Board of Directors began approving equity awards in lieu of stock options in November 2004. These awards have
historically been apportioned 50% as a fixed award of restricted stock (restricted from sale or transfer until vesting ratably over
a five-year period of continued employment) and 50% as performance share awards, based on the attainment of certain
performance targets for the ensuing fiscal year. If the fiscal year performance targets are met, the performance shares are
subsequently issued as restricted stock and vest over four years of continued employment.
Stock awards are being expensed ratably over the employees’ five-year requisite service period in accordance with the
graded vesting schedule, resulting in more expense being recognized in the early years. Compensation expense related to
restricted awards totaled $8,073,000, $6,104,000 and $5,710,000 for fiscal years 2011, 2010 and 2009, respectively. The
remaining unamortized expense as of October 2, 2011 is $10,920,000, with a weighted average recognition period of 1.63 years.
Amortization of compensation costs related to stock options ceased at the end of the first quarter of fiscal 2009, since all
outstanding options had become fully vested and no options were granted in fiscal 2011, 2010 or 2009. Compensation expense
related to stock options totaled $12,000 for fiscal year 2009.
A summary of the status of the Company’s restricted stock awards as of October 2, 2011, October 3, 2010 and
September 27, 2009, changes during the periods ending on those dates and weighted average grant-date fair value (WAGFV)
is presented below (shares in thousands):
Stock Awards October 2, 2011 October 3, 2010 September 27, 2009
Shares WAGFV Shares WAGFV Shares WAGFV
Non-vested at beginning of period 706 28.52 667 29.02 589 30.34
Granted 298 38.44 272 26.68 268 26.54
Vested (191) 28.29 (168) 28.03 (129) 26.97
Forfeited (16) 30.34 (65) 27.22 (61) 35.18
Non-vested at end of period 797 32.25 706 28.52 667 29.02
The total fair value of stock awards that vested during fiscal years 2011, 2010 and 2009 was $5,388,000, $4,705,000, and
$3,514,000, respectively.
A summary of the status of the Company’s stock option plans as of October 2, 2011, October 3, 2010, and
September 27, 2009, changes during the years ending on those dates and related weighted average exercise price is presented
below (shares in thousands):
2011 2010 2009
Stock Options Shares Price Shares Price Shares Price
Outstanding at beginning of year 104 $17.86 373 $16.49 483 $16.40
Exercised (37) 16.25 (269) 15.96 (110) 16.07
Outstanding and exercisable at end of year 67 $18.77 104 $17.86 373 $16.49
As of October 2, 2011, all outstanding stock options were exercisable and the price per share ranged from $14.39 to $35.24.
The total cash received from stock options exercised for the exercise price and related tax deductions are included in the
Consolidated Statements of Shareholders’ Equity and Comprehensive Income. The Company has historically issued new shares
to satisfy the stock options exercised. The aggregate intrinsic value of stock options outstanding and exercisable at
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
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