RDK » Topics » Equity Incentive Plans

This excerpt taken from the RDK 10-Q filed May 4, 2009.
Equity Incentive Plans
The Company has various equity incentive plans that allow for the granting of incentive stock options, nonqualified stock options or stock awards such as performance shares and restricted stock. As previously disclosed in the Notes to the Consolidated Financial Statements in the Company’s 2008 Annual Report, the Company’s Board of Directors began approving stock awards in lieu of stock options beginning in November 2004.

A summary of the status of the Company's stock awards as of March 29, 2009 and March 30, 2008, changes during the 26-week periods ending on those dates and the weighted average grant-date fair value (WAGFV) is presented below (shares in thousands):

Stock Awards  March 29, 2009 March 30, 2008
  Shares      WAGFV           Shares      WAGFV
Non-vested at beginning of period  589   $   30.34 477   $   25.17
Granted  268   26.54 278   36.69
Vested  (128)     26.96 (87)     23.45
Forfeited  (54)   36.11 (65)   28.64
Non-vested at end of period  675   29.01 603   30.35

The total fair value of stock awards vested during the 26 weeks ended March 29, 2009 and March 30, 2008 was $3,484,000 and $3,190,000, respectively.

The stock awards are being expensed over the employees’ five-year vesting service period in accordance with the graded vesting schedule, resulting in more expense being recognized in the early years. Compensation expense related to restricted awards amounted to $1,478,000 and $1,450,000 for the 13 weeks and $2,866,000 and $2,746,000 for the 26 weeks ended March 29, 2009 and March 30, 2008, respectively. Unamortized expense related to these awards as of March 29, 2009 amounted to $10,609,000 and have a weighted average recognition period of 2.19 years.

A summary of the status of the Company's stock option plans as of March 29, 2009 and March 30, 2008, changes during the 26-week periods ending on those dates and related weighted average exercise price is presented below (shares in thousands):

Stock Options  March 29, 2009 March 30, 2008
  Shares           Price           Shares           Price
Outstanding at beginning of period  483   $   16.40 731   $   16.01
Granted  -     - 10     35.24
Exercised  (68)   16.24 (140)   16.57
Forfeited  -   -   (5)   15.71
Outstanding at end of period  415   16.42 596   16.40
Options exercisable at end of period  415   16.42 494   16.30

As of March 29, 2009, all outstanding stock options were exercisable and the price per share ranged from $11.50 to $35.24. The total cash received from stock options exercised for the exercise price and related tax deductions is included in the Consolidated Condensed Statements of Shareholders’ Equity and Comprehensive Income. The Company has historically issued new shares to satisfy the stock options exercised.

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The aggregate intrinsic value of stock options as of March 29, 2009 and March 30, 2008, and stock options exercised during the periods ending on those dates is presented below (in thousands):

  March 29, 2009           March 30, 2008
Intrinsic value of outstanding options at end of period  $   2,829 $   12,066
Intrinsic value of options exercisable at end of period    2,829   10,052
Intrinsic value of stock options exercised during the 26-week period    726 2,754

Compensation costs related to stock options amounted to zero and $132,000 for the 13 weeks ended March 29, 2009 and March 30, 2008, respectively. For the 26 weeks ended March 29, 2009 and March 30, 2008, stock option compensation costs amounted to $12,000 and $20,000, respectively. The fair value of the stock options was estimated at the date of grant using the Black-Scholes option pricing model. The Company used historical data to estimate the expected life, volatility and expected forfeitures in valuing the stock options. The risk-free rate was based on the U.S. Treasury rate in effect at the time of grant. There were no stock options granted during fiscal 2009. The weighted average fair value for stock options granted in fiscal 2008 was $11.28 per option and was based on the following weighted average assumptions: an expected life of 6.32 years; a risk-free interest rate of 3.23%; volatility of 31.51%; and a dividend yield of 1.38%.

This excerpt taken from the RDK 10-Q filed Feb 1, 2008.
Equity Incentive Plans
The Company has various equity incentive plans that allow for the granting of incentive stock options, nonqualified stock options or stock awards such as performance shares and restricted stock. As previously disclosed in the Notes to the Consolidated Financial Statements in the Company’s 2007 Annual Report, the Company’s Board of Directors began approving stock awards in lieu of stock options beginning in November 2004.

A summary of the status of the Company's stock awards as of the balance sheet dates, changes during the periods ending on those dates and weighted average grant-date fair value (WAGFV) is presented below (shares in thousands):

13 Weeks Ended
Stock Awards  December 30, 2007       December 31, 2006
  Shares       WAGFV Shares       WAGFV
Non-vested at beginning of period  477  $ 25.17 325  $ 20.92
Granted  278  36.69 269  28.63
Vested  (87) 23.45 (47) 21.45
Forfeited  (53) 28.54 (56) 20.18
Non-vested at end of period  615  30.32 491  25.17

The total fair value of stock awards vested during the 13 weeks ended December 30, 2007 and December 31, 2006 was $3,190,000 and $1,354,000, respectively.

The stock awards are being expensed over the employees’ five-year requisite service period in accordance with the graded vesting schedule, resulting in more expense being recognized in the early years. Compensation expense related to restricted awards amounted to $1,296,000 and $809,000 for the 13 weeks ended December 30, 2007 and December 31, 2006, respectively. Unamortized expense related to these awards as of December 30, 2007 amounted to $13,590,000, with a weighted average recognition period of 2.56 years.

A summary of the status of the Company's stock option plans as of the balance sheet dates, changes during the periods ending on those dates and related weighted average exercise price is presented below (shares in thousands):

 13 Weeks Ended
Stock Options  December 30, 2007       December 31, 2006
  Shares       Price Shares       Price
Outstanding at beginning of period  731  $ 16.01 1,179  $ 15.81
Exercised  (90) 15.87 (144) 15.49
Forfeited  (3) 16.35 -  -
Outstanding at end of period  638  16.03 1,035  15.87
Options exercisable at end of period  534  15.86 741  15.71

The option price per share for stock options outstanding as of December 30, 2007 ranged from $11.50 to $19.94 and the average remaining life was 0.89 years. The total cash received from stock options exercised for the exercise price and related tax deductions is included in the Consolidated Condensed Statements of Shareholders’ Equity and Comprehensive Income. The Company has historically issued new shares to satisfy the stock options exercised.

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The aggregate intrinsic value of stock options as of the balance sheet dates and stock options exercised during the periods ending on those dates is presented below (in thousands):

  December 30, 2007       December 31, 2006
Intrinsic value of outstanding options at end of period  $ 12,150 $ 12,460
Intrinsic value of options exercisable at end of period  10,257 9,034
Intrinsic value of stock options exercised during the 13 week period  1,807 1,768

Compensation costs related to stock options amounted to a credit of $112,000 and a charge of $117,000 for the 13 weeks ended December 30, 2007 and December 31, 2006, respectively. The fair value of the stock options was estimated at the date of grant using the Black-Scholes option pricing model. The Company used historical data to estimate the expected life, volatility and expected forfeitures of the stock option value. The risk-free rate was based on the U.S. Treasury rate in effect at the time of grant. There were no stock options granted in fiscal 2008 or fiscal 2007.

EXCERPTS ON THIS PAGE:

10-Q
May 4, 2009
10-Q
Feb 1, 2008
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