Jack In The Box 2013 Annual Report Download - page 72

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

As of September 29, 2013, there was approximately $2.0 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock options
grants which is expected to be recognized over a weighted-average period of 1.5 years. The total intrinsic value of stock options exercised was $25.9 million,
$6.0 million and $4.2 million in 2013, 2012 and 2011, respectively.
Performance share awards — Performance share awards, granted in the form of stock units, represent a right to receive a certain number of shares of
common stock based on the achievement of corporate performance goals and continued employment during the vesting period. Performance share awards
issued to executives vest at the end of a 3-year period and vested amounts may range from 0% to as high as 150% of targeted amounts depending on the
achievement of performance measures at the end of a 3-year period. Prior to 2012, we issued performance share awards to other members of management that
vest at the end of a 3-year period with vested amounts ranging from 0% to 100% depending on the achievement of performance measures at the end of the first
year of the three-year period. The expected cost of the shares is based on the fair value of our stock on the date of grant and is reflected over the vesting period
with a reduction for estimated forfeitures. These awards may be settled in cash or shares of common stock at the election of the Company on the date of grant.
It is our intent to settle these awards with shares of common stock.
The following is a summary of performance share award activity for fiscal 2013:





Performance share awards outstanding at September 30, 2012
374,059
$19.79
Granted
89,236
$27.49
Issued
(31,209)
$19.27
Forfeited
(32,745)
$21.36
Canceled
(74,116)
$20.00
Performance share awards outstanding at September 29, 2013
325,225
$21.73
Vested and subject to release at September 29, 2013
48,569
$21.45
As of September 29, 2013, there was approximately $5.1 million of total unrecognized compensation cost related to performance-vested stock awards which
is expected to be recognized over a weighted-average period of 1.5 years. The weighted-average grant date fair value of awards granted was $27.49,
$19.62,and $21.74 in 2013, 2012 and 2011, respectively. The total fair value of awards that vested during 2013, 2012 and 2011 was $1.0 million, $0.5
million and $0.6 million, respectively.
Nonvested stock awards — We previously issued nonvested stock awards (“RSAs”) to certain executives under our share ownership guidelines. Effective
fiscal 2009, we no longer issue RSA awards and have replaced them with grants of nonvested restricted stock units. The RSAs vest, subject to the discretion
of our Board of Directors in certain circumstances, upon retirement or termination based upon years of service. 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 RSA activity for fiscal 2013:





Nonvested stock awards outstanding at September 30, 2012
394,117
$14.81
Released
(56,681)
$9.94
Forfeited
(21,621)
$26.67
Nonvested stock awards outstanding at September 29, 2013
315,815
$14.87
Vested
204,505
$13.00
As of September 29, 2013, there was approximately $0.7 million of total unrecognized compensation cost related to RSAs, which is expected to be recognized
over a weighted-average period of 2.8 years. In 2013, 2012 and 2011, the total fair value of RSAs that vested in each year was $1.2 million, $0.3 million and
$0.2 million, respectively.
Nonvested stock units — In February 2009, the Board of Directors approved the issuance of a new type of stock award, nonvested restricted stock units
(“RSUs”). RSUs are generally issued to executives, non-management directors and certain other members of management and employees. Prior to fiscal 2011,
RSUs were granted to certain Executive and Senior Vice Presidents pursuant to our share ownership guidelines. These awards vest upon retirement or
termination based on years of service. As of September 29, 2013, 60,272 such RSUs were outstanding.
F-30