Wendy's 2014 Annual Report Download - page 103
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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
The following table summarizes activity of Restricted Shares during 2014:
Number of
Restricted
Shares
Weighted
Average
Grant Date
Fair Value
Non-vested at December 29, 2013 .............................................. 2,300 $5.75
Granted .................................................................. 994 8.38
Vested ................................................................... (620) 5.38
Forfeited ................................................................. (231) 6.81
Non-vested at December 28, 2014 .............................................. 2,443 $6.80
The total fair value of Restricted Shares that vested in 2014, 2013 and 2012 was $5,251, $2,275 and $2,023,
respectively.
Performance Shares
The Company grants performance-based awards to certain officers and key employees. The vesting of these
awards is contingent upon meeting one or more defined operational goals (a performance condition) or common
stock share prices (a market condition). The quantity of shares awarded ranges from 0% to 200% of “Target,” as
defined in the award agreement as the midpoint number of shares, based on the level of achievement of the
performance and market conditions.
The fair values of the performance condition awards granted in 2014 and 2013 were determined using the
average of the high and low trading prices of our common stock on the date of grant. There were no performance
condition awards granted in 2012. Share-based compensation expense recorded for performance condition awards is
reevaluated at each reporting period based on the probability of the achievement of the goal.
The fair value of market condition awards granted in 2012 was estimated using the Monte Carlo simulation
model. There were no market condition awards granted during 2014 or 2013. The Monte Carlo simulation model
utilizes multiple input variables to estimate the probability that the market conditions will be achieved and is applied
to the average of the high and low trading prices of our common stock on the date of grant.
The input variables are noted in the table below:
2012
Risk-free interest rate ..................................................................... 0.41%
Expected life in years ..................................................................... 2.99
Expected volatility ....................................................................... 34.0%
Expected dividend yield (a) ................................................................ 0.00%
(a) The Monte Carlo method assumes a reinvestment of dividends.
Share-based compensation expense is recorded ratably for market condition awards during the requisite service
period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met.
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