XML 154 R11.htm IDEA: XBRL DOCUMENT v3.19.3
Employee Stock Purchase and Stock Option Plans
12 Months Ended
Sep. 27, 2019
Share-based Payment Arrangement [Abstract]  
Employee Stock Purchase and Stock Option Plans Employee Stock Purchase and Stock Option Plans
Employee Stock Purchase Plans
Under the 1989 ESPP and the GESPP, eligible employees who elect to participate in these plans are granted the right to purchase shares of the common stock of Jacobs at a discount that is limited to 5% of the per-share market value on the day shares are sold to employees. The following table summarizes the stock issuance activity under the 1989 ESPP and the GESPP for the fiscal years ended September 27, 2019, September 28, 2018 and September 29, 2017:
 
For the Years Ended
 
September 27, 2019
 
September 28, 2018
 
September 29, 2017
Aggregate Purchase Price Paid for Shares Sold:
 

 
 

 
 

Under the 1989 ESPP
$
24,824,232

 
$
21,590,858

 
$
21,084,657

Under the GESPP
2,471,193

 
2,240,609

 
2,105,834

Total
$
27,295,425

 
$
23,831,467

 
$
23,190,491

Aggregate Number of Shares Sold:
 

 
 

 
 

Under the 1989 ESPP
354,580

 
357,899

 
403,652

Under the GESPP
34,843

 
36,405

 
39,648

Total
389,423

 
394,304

 
443,300


On January 19, 2017, the Company’s stockholders approved an increase in the number of shares authorized by 4,350,000 shares for the 1989 ESPP and by 150,000 shares for the GESPP.
At September 27, 2019, there remains 3,833,375 shares reserved for issuance under the 1989 ESPP and 103,732 shares reserved for issuance under the GESPP.
Stock Incentive Plans
We also sponsor the 1999 Stock Incentive Plan, as amended and restated (the "SIP") and the 1999 Outside Director Stock Plan, as amended and restated (the "ODSP"). The 1999 SIP provides for the issuance of incentive stock options, non-qualified stock options, share appreciation rights ("SARs"), restricted stock and restricted stock units to employees. The 1999 ODSP provides for awards of shares of common stock, restricted stock, restricted stock units and grants of non-qualified stock options to our outside (i.e., nonemployee) directors. The following table sets forth certain information about the 1999 Plans:
 
1999 SIP
 
1999 ODSP
 
Total
Number of shares authorized
29,850,000

 
1,100,000

 
30,950,000

Number of remaining shares reserved for issuance at September 27, 2019
5,719,617

 
427,002

 
6,146,619

Number of shares relating to outstanding stock options at September 27, 2019
755,856

 
170,750

 
926,606

Number of shares available for future awards:
 
 
 

 
 

At September 27, 2019
4,963,761

 
256,252

 
5,220,013

At September 28, 2018
5,335,741

 
295,630

 
5,631,371


Effective September 28, 2012, all grants of shares under the 1999 SIP are issued on a fungible basis.  An award other than an option or SAR are granted on a 1.92-to-1.00 basis (“Fungible”). An award of an option or SAR are granted on a 1-to-1 basis (“Not Fungible”).
The following table presents the fair value of shares (of restricted stock and restricted stock units) vested for the years ended September 27, 2019, September 28, 2018 and September 29, 2017 (in thousands):
 
For the Years Ended
 
September 27, 2019
 
September 28, 2018
 
September 29, 2017
Restricted Stock and Restricted Stock Units (service condition)
$
37,864

 
$
64,121

 
$
34,466

Restricted Stock Units (service, market, and performance conditions at target)
17,124

 
2,626

 
4,183

Total
$
54,988

 
$
66,747

 
$
38,649


At September 27, 2019, the amount of compensation cost relating to non-vested awards not yet recognized in the financial statements is approximately $77.2 million. The majority of these unrecognized compensation costs will be recognized by the first quarter of fiscal 2021. The weighted average remaining contractual term of options currently exercisable is 2.1 years.
Stock Options
The following table summarizes the stock option activity for the years ended September 27, 2019, September 28, 2018 and September 29, 2017:
 
Number of Stock Options
 
Weighted Average
Exercise Price
Outstanding at September 30, 2016
3,577,512

 
$
45.69

Granted

 
$

Exercised
(906,648
)
 
$
43.79

Cancelled or expired
(154,039
)
 
$
48.79

Outstanding at September 29, 2017
2,516,825

 
$
46.19

Granted

 
$

Exercised
(636,019
)
 
$
46.93

Cancelled or expired
(114,047
)
 
$
52.26

Outstanding at September 28, 2018
1,766,759

 
$
45.53

Granted

 
$

Exercised
(828,529
)
 
$
45.63

Cancelled or expired
(11,624
)
 
$
42.10

Outstanding at September 27, 2019
926,606

 
$
45.48


Cash received from the exercise of stock options, net of tax remitted, during the year ended September 27, 2019 was $37.8 million.
Stock options outstanding at September 27, 2019 consisted entirely of non-qualified stock options. The following table presents the total intrinsic value of stock options exercised for the fiscal years ended September 27, 2019, September 28, 2018 and September 29, 2017 (in thousands):
For the Years Ended
September 27, 2019
 
September 28, 2018
 
September 29, 2017
$27,720
 
$13,931
 
$14,713

The total intrinsic value of stock options exercisable at September 27, 2019 was approximately $38.7 million. The following table presents certain other information regarding our 1999 SIP and 1999 OSDP for the fiscal years ended September 27, 2019, September 28, 2018 and September 29, 2017:
 
September 27, 2019
 
September 28, 2018
 
September 29, 2017
At fiscal year end:
 

 
 

 
 

Range of exercise prices for options exercisable
 $32.51–$60.43

 
$32.51–$60.43

 
$32.51–$80.63

Number of options exercisable
860,114

 
1,557,900

 
1,992,022

For the fiscal year:
 

 
 

 
 

Range of prices relating to options exercised
 $36.88–$60.43

 
$35.93–$61.26

 
$37.03–$55.53

Estimated weighted average fair values of options granted
$

 
$

 
$


The following table presents certain information regarding stock options outstanding and stock options exercisable at September 27, 2019:
 
September 27, 2019
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
Number
 
Weighted Average Remaining Contractual Life (years)
 
Weighted Average Price
 
Number
 
Weighted Average Exercise Price
$32.51 - $37.03
60,500

 
2.65
 
$
36.99

 
60,500

 
$
36.99

$37.43 - $46.09
607,119

 
4.76
 
$
42.90

 
540,627

 
$
43.02

$47.11 - $55.13
227,612

 
3.46
 
$
52.54

 
227,612

 
$
52.54

$60.08 - $80.63
31,375

 
4.31
 
$
60.36

 
31,375

 
$
60.36

 
926,606

 
4.29
 
$
45.48

 
860,114

 
$
45.75


The 1999 ODSP and the 1999 SIP allow participants to satisfy the exercise price of stock options by tendering shares of Jacobs common stock that have been owned by the participants for at least six months. Shares so tendered are retired and canceled, and are shown as repurchases of common stock in the accompanying Consolidated Statements of Stockholders’ Equity. The weighted average remaining contractual term of options currently exercisable is 4.15 years.
Restricted Stock
The following table presents the number of shares of restricted stock and restricted stock units issued as common stock under the 1999 SIP for the years ended September 27, 2019, September 28, 2018 and September 29, 2017:
 
 
For the Years Ended
 
September 27, 2019
 
September 28, 2018
 
September 29, 2017
Restricted stock

 

 

Restricted stock units (service condition)
318,056

 
1,087,724

 
496,951

Restricted stock units (service, market and performance conditions)
240,068

 
254,784

 
237,058


The amount of restricted stock units issued for awards with performance and market conditions in the above table are issued based on performance against the target amount. The number of shares ultimately issued, which could be greater or less than target, will be based on achieving specific performance conditions related to the awards.
The following table presents the number and weighted average grant-date fair value of restricted stock and restricted stock units at September 27, 2019:
 
Number of Shares
 
Weighted Average Grant-Date Fair Value
Outstanding at September 28, 2018
2,329,535

 
$
56.11

Granted
710,718

 
$
73.12

Vested
(1,093,926
)
 
$
51.54

Canceled
(223,290
)
 
$
57.87

Outstanding at September 27, 2019
1,723,037

 
$
65.80


The following table presents the number of shares of restricted stock and restricted stock units canceled and withheld for taxes under the 1999 SIP for the years ended September 27, 2019, September 28, 2018 and September 29, 2017:
 
For the Years Ended
 
September 27, 2019
 
September 28, 2018
 
September 29, 2017
Restricted stock
105,301

 
284,254

 
365,481

Restricted stock units (service condition)
295,122

 
336,516

 
128,536

Restricted stock units (service, market and performance conditions)
183,654

 
95,063

 
86,742


The amount of unvested restricted stock units canceled for awards with service and performance conditions in the above table is based on the service period achieved and performance against the target amount.
The restrictions attached to restricted stock and restricted stock units generally relate to the recipient’s ability to sell or otherwise transfer the stock or stock units. There are also restrictions that subject the stock and stock units to forfeiture back to the Company until earned by the recipient through continued employment or service.
The following table provides the number of shares of restricted stock units outstanding at September 27, 2019 under the 1999 SIP. No shares of restricted stock were issued under the 1999 ODSP during such periods.
 
September 27, 2019
 
Total
Restricted stock
95,626

Restricted stock units (service condition)
833,091

Restricted stock units (service, market and performance conditions)
668,252


The following table presents the number of shares of restricted stock and restricted stock units issued under the 1999 ODSP for the years ended September 27, 2019, September 28, 2018 and September 29, 2017
 
For the Years Ended
 
September 27, 2019
 
September 28, 2018
 
September 29, 2017
Restricted stock units (service condition)
26,372

 
21,620

 
21,123


The following table provides the number of shares of restricted stock and restricted stock units outstanding at September 27, 2019 under the 1999 ODSP:
 
September 27, 2019
Restricted stock
34,000

Restricted stock units (service condition)
92,068


All shares granted under the 1999 ODSP are issued on a 1.92-to-1.00 basis.