Jack In The Box 2013 Annual Report Download - page 73

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Beginning fiscal 2011, we replaced the ownership share grants with time-vested RSUs for all Vice Presidents and Officers that vest ratably over 5 years and
have a 50% or 100% holding requirement on settled shares, which must be held until termination. As of September 29, 2013, 207,240 such RSUs were
outstanding. RSUs issued to non-management directors vest 12 months from the date of grant or upon termination of board service and totaled 51,649 units
as of September 29, 2013. RSUs issued to certain other employees either cliff vest or vest over 3 years and totaled 64,460 units as of September 29, 2013.
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 RSU activity for fiscal 2013:
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Nonvested stock units outstanding at September 30, 2012
290,616
$21.25
Granted
151,716
$28.95
Released
(41,418)
$21.51
Canceled
(17,293)
$23.22
Nonvested stock units outstanding at September 29, 2013
383,621
$24.17
As of September 29, 2013, there was approximately $4.6 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized
over a weighted-average period of 3.0 years. The weighted-average grant date fair value of awards granted was $28.95, $22.26 and $20.02 in 2013, 2012 and
2011, respectively. In 2013, 2012 and 2011, the total fair value of RSUs that vested and were released was $0.9 million, $1.8 million and $0.9 million,
respectively.
Non-management directors’ deferred compensation — All awards outstanding under our directors’ deferred compensation plan are accounted for as
equity-based awards and deferred amounts are converted into stock equivalents at the then-current market price of our common stock. During fiscal 2013,
2012 and 2011, 44,714, 44,713 and 20,259 shares of common stock were issued in connection with director retirements having a fair value of $1.4 million,
$1.0 million and $0.5 million, respectively.
The following is a summary of the stock equivalent activity for fiscal 2013:
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Stock equivalents outstanding at September 30, 2012
119,343
$16.21
Deferred directors’ compensation
7,083
$31.06
Stock distribution
(44,714)
$11.02
Stock equivalents outstanding at September 29, 2013
81,712
$20.34
Employee stock purchase plan — The following is a summary of shares issued pursuant to our ESPP in each year:
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Common stock issued
7,144
11,087
13,140
Fair value of common stock issued
$29.71
$21.65
$19.99
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Repurchases of common stock — In November 2011, the Board of Directors (“Board”) approved a program, expiring November 2013 to repurchase up to
$100.0 million in shares of our common stock. This authorization was fully utilized in fiscal 2013. In November 2012 and August 2013, the Board approved
two new programs, each of which provide repurchase authorizations for up to an additional $100.0 million in shares of our common stock, expiring
November 2014 and November 2015, respectively. During fiscal 2013, we repurchased 4.0 million shares at an aggregate cost of $140.1 million. As of
September 29, 2013, there was $136.8 million remaining under the November 2012 and August 2013 authorizations.
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Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share
calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have
been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include stock options, nonvested stock awards
and units, non-management director stock
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