Jack In The Box 2014 Annual Report Download - page 75

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

As of September 28, 2014, there was approximately $3.2 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 1.4 years. The total intrinsic value of stock options exercised was $42.4
million, $25.9 million and $6.0 million in 2014, 2013 and 2012, 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 2014:





Performance share awards outstanding at September 29, 2013
325,225
$21.73
Granted
55,668
$47.29
Issued
(50,945)
$21.31
Forfeited
(22,839)
$24.38
Performance adjustments
23,094
$18.67
Performance share awards outstanding at September 28, 2014
330,203
$25.69
Vested and subject to release at September 28, 2014
186,184
$19.33
As of September 28, 2014, there was approximately $5.2 million of total unrecognized compensation cost related to performance-vested stock awards which
is expected to be recognized over a weighted-average period of 1.6 years. The weighted-average grant date fair value of awards granted was $47.29, $27.49
and $19.62 in 2014, 2013 and 2012, respectively. The total fair value of awards that vested during 2014, 2013 and 2012 was $3.6 million, $1.0 million and
$0.5 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 2014:





Nonvested stock awards outstanding at September 29, 2013
315,815
$14.87
Released
(220,000)
$12.39
Nonvested stock awards outstanding at September 28, 2014
95,815
$20.56
Vested
38,133
$19.79
As of September 28, 2014, there was approximately $0.4 million of total unrecognized compensation cost related to RSAs, which is expected to be
recognized over a weighted-average period of 2.7 years. In 2014, 2013 and 2012, the total fair value of RSAs that vested in each year was $0.8 million, $1.2
million and $0.3 million, respectively.
Nonvested stock units — Nonvested restricted stock units (“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 28, 2014, 60,272 such RSUs were outstanding.
F-31