Jack In The Box 2007 Annual Report Download - page 78

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As of September 30, 2007, there was approximately $5.2 million of total unrecognized compensation cost
related to performance-vested stock awards. That cost is expected to be recognized over a weighted-average period
of 1.97 years. The total fair value of awards that vested as of September 30, 2007, the end of the first three-year
period, was $4.7 million. We expect to issue the stock associated with these awards in November 2007. In 2006,
1,244 awards vested with a fair value of $0.02 million. No awards vested in 2005.
Nonvested stock awards — We generally issue nonvested stock awards to certain executives under our share
ownership guidelines. Our nonvested stock awards vest upon retirement or termination based upon years of service
or ratably over a three-year period as provided in the award agreements. These awards are amortized to
compensation expense over the estimated vesting period based upon the fair value of our common stock on
the award date.
The following is a summary of nonvested stock activity for fiscal year 2007:
Shares
Weighted-
Average
Grant Date
Fair Value
Nonvested stock outstanding at October 1, 2006 ...................... 591,940 $12.28
Granted .................................................. — —
Released ................................................. (102,000) 10.64
Forfeited ................................................. — —
Nonvested stock outstanding at September 30, 2007 ................... 489,940 $12.62
Vested at September 30, 2007 ................................... 322,200 $10.64
As of September 30, 2007, there was approximately $3.7 million of total unrecognized compensation cost
related to nonvested stock awards, which is expected to be recognized over a weighted-average period of 5.5 years.
No shares of nonvested stock were granted in 2007. During 2006 and 2005, we granted 11,000 and 115,740 shares of
nonvested stock, respectively, with a grant date fair value of $0.2 million and $2.0 million, respectively. In 2007 and
2006, the total grant date fair value of shares released was $1.1 million and $0.2 million, respectively. No shares
were released in 2005.
Non-management directors’ deferred compensation — Effective November 9, 2006, all awards outstanding
under our directors’ deferred compensation plan are accounted for as equity-based awards per the provisions of
SFAS 123R and deferred amounts are converted into stock equivalents at the then current market price of our
common stock. Prior to November 9, 2006, these awards were accounted for as liability-based awards, and in
addition to converting deferrals into stock equivalents at the then current market price of our stock, our liability was
adjusted at the end of each reporting period to reflect the value of the directors’ stock equivalents at the then market
price of our common stock. Cash used to settle directors’ deferred compensation upon a director’s retirement from
the Board in fiscal 2006 was $1.1 million. No deferrals were settled in 2007 and 2005.
The following is a summary of the stock equivalent activity for fiscal year 2007:
Stocks
Equivalents
Weighted-
Average
Grant Date
Fair Value
Stock equivalents outstanding at October 1, 2006 .................... 212,208 $10.65
Deferred directors’ compensation .............................. 9,920 33.17
Stock distribution.......................................... — —
Stock equivalents outstanding at September 30, 2007 ................. 222,128 $11.66
F-28
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)