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Stock-Based Compensation
9 Months Ended
Sep. 30, 2015
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

5. Stock-based Compensation

During the nine months ended September 30, 2015, the Company granted stock only stock appreciation rights (“SOSARs”) on 367 shares of its common stock to eligible employees. The weighted average grant date fair value of the SOSARs was $156.97 per share with a weighted average exercise price of $662.27 per share based on the closing price of common stock on the date of grant. The SOSARs vest in two equal installments on the second and third anniversary of the grant date. During the nine months ended September 30, 2015,  713 SOSARs were exercised, and 37 SOSARs were forfeited.

During the first quarter of 2015, the Company awarded performance shares that were subject to service, performance, and market vesting conditions. The quantity of shares that will ultimately vest is determined based on Chipotle’s relative performance versus a restaurant industry peer group in the annual average of: revenue growth, net income growth, and total shareholder return. Each performance measure will be weighted equally, and performance will be calculated over a three year period beginning January 1, 2015 through December 31, 2017. If minimum targets are not met, then no shares will vest.

Total stock-based compensation expense was $20,668 and $58,562 ($12,758 and $36,150 net of tax) for the three and nine months ended September 30, 2015, respectively, and was $21,024 and $83,021 ($12,944 and $51,116 net of tax) for the three and nine months ended September 30, 2014. A portion of stock-based compensation totaling $329 and $1,163 for the three and nine months ended September 30, 2015, and $269 and $865 for the three and nine months ended September 30, 2014, respectively, was recognized as capitalized development and is included in leasehold improvements, property and equipment in the consolidated balance sheet.