Jack In The Box 2014 Annual Report Download - page 76

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Beginning fiscal 2011, we replaced the ownership share grants with time-vested RSUs for certain 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 28, 2014, 76,999 such RSUs were
outstanding. RSUs issued to non-management directors vest 12 months from the date of grant, or upon termination of board service if the directors elected to
defer receipt and totaled 38,699 units as of September 28, 2014. RSUs issued to certain other employees either cliff vest or vest ratably over 3 years and
totaled 154,901 units as of September 28, 2014. 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 2014:
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Nonvested stock units outstanding at September 29, 2013
383,621
$24.17
Granted
125,728
$49.79
Released
(148,997)
$23.34
Canceled
(29,481)
$30.39
Nonvested stock units outstanding at September 28, 2014
330,871
$33.73
As of September 28, 2014, there was approximately $5.9 million of total unrecognized compensation cost related to RSUs, which is expected to be
recognized over a weighted-average period of 2.0 years. The weighted-average grant date fair value of awards granted was $49.79, $28.95 and $22.26 in
2014, 2013 and 2012, respectively. In 2014, 2013 and 2012, the total fair value of RSUs that vested and were released was $3.5 million, $0.9 million and
$1.8 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 2014, 2013 and
2012, 10,616, 44,714 and 44,713 shares of common stock were issued in connection with director retirements having a fair value of $0.6 million, $1.4
million and $1.0 million, respectively.
The following is a summary of the stock equivalent activity for fiscal 2014:
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Stock equivalents outstanding at September 29, 2013
81,712
$20.34
Deferred directors’ compensation
3,861
$56.33
Dividend equivalents
509
$59.01
Stock distribution
(10,616)
$13.24
Stock equivalents outstanding at September 28, 2014
75,466
$23.44
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
4,055
7,144
11,087
Fair value of common stock issued
$ 49.25
$ 29.71
$ 21.65
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Repurchases of common stock — In November 2012 and August 2013, the Board approved two programs, each of which provide repurchase authorizations
for up to $100.0 million expiring November 2014 and November 2015, respectively. These authorizations were fully utilized in fiscal 2014. Additionally, in
February 2014 and July 2014, the Board of Directors approved two new programs which provided repurchase authorizations for up to $200.0 million and
$100.0 million, respectively, in shares of our common stock, expiring November 2015. During fiscal 2014, we repurchased 5.6 million shares at an aggregate
cost of $319.7 million. As of September 28, 2014, there was $117.1 million remaining under the February and July 2014 authorizations.
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