Jack In The Box 2008 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2008 Jack In The Box 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 88

  • 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
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

period, was $0.9 million. We expect to issue the stock associated with these awards in November 2008. In 2007 and
2006, 146,116 and 1,244 awards vested with a fair value of $4.7 million and $0.02 million, respectively.
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 2008:
Shares
Weighted-
Average
Grant Date
Fair Value
Nonvested stock outstanding at September 30, 2007 ................... 489,940 $12.62
Granted .................................................. 64,545 26.35
Released ................................................. (2,000) 19.76
Forfeited ................................................. (3,000) 20.63
Nonvested stock outstanding at September 28, 2008 ................... 549,485 $14.16
Vested at September 28, 2008 .................................... 191,113 $11.21
As of September 28, 2008, there was approximately $4.3 million of total unrecognized compensation cost
related to nonvested stock awards, which is expected to be recognized over a weighted-average period of 7.0 years.
No shares of nonvested stock were granted in 2007. During 2006, we granted 11,000 shares of nonvested stock,
respectively, with a grant date fair value of $0.2 million. In 2008, 2007 and 2006, the total grant date fair value of
shares released was $0.04 million, $1.1 million and $0.2 million respectively.
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. During fiscal 2008, 26,627 shares of common stock were issued in connection with the
retirement of a director having a grant date fair value of $0.4 million. No deferrals were settled in 2007. Cash usedto
settle directors’ deferred compensation upon a director’s retirement from the Board in fiscal 2006 was $1.1 million.
The following is a summary of the stock equivalent activity for fiscal 2008:
Stock
Equivalents
Weighted-
Average
Grant Date
Fair Value
Stock equivalents outstanding at September 30, 2007 ................. 222,128 $11.66
Deferred directors’ compensation ............................. 9,831 26.55
Stock distribution ......................................... (26,627) 15.10
Stock equivalents outstanding at September 28, 2008 ................. 205,332 11.92
Employee stock purchase plan — In fiscal 2008 and 2007, 15,567 and 11,248 shares, respectively, were
purchased through the ESPP at an average price of $25.65 and $32.51. The first offering period concluded in the first
quarter of 2007, therefore no shares were issued under this plan in 2006.
F-29
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)