Stockholders' Equity

12 Months Ended

Sep. 28, 2013

Stockholders' Equity [Abstract]

Stockholders' Equity

12. Stockholders' Equity

Equity Incentive Plans

In connection with Apollo's acquisition of the Company, we adopted an equity incentive plan pursuant to which options to acquire up to 7,071,337 shares of the Company's common stock may be granted. Prior to fiscal 2011, the plan was amended to allow for an additional 5,267,500 options to be granted.

In connection with the initial public offering, the Company adopted the Berry Plastics Group, Inc. 2012 Long-Term Incentive Plan, which authorized the issuance of up to 9,297,750 shares of common stock pursuant to the grant or exercise of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity-based awards.

In August 2013, the Company recorded an $8 million stock compensation charge related to certain modifications to the Berry Plastics Group Inc. 2006 Equity Incentive Plan and the Berry Plastics Group, Inc. 2012 Long-Term Incentive Plan (collectively, the "Plans"). The modifications include (i) accelerated vesting of all unvested options upon an employee's death or termination by the Company by reason of an employee's permanent disability, (ii) in the event of an employee's qualified retirement, continuation of the normal vesting period applicable to the retiree's unvested options, as well as an extension of the exercise period to the end of the original ten-year term of the retiree's vested options and (iii) all unvested options and stock appreciation rights that were subject to performance-based vesting criteria as of January 1, 2013 (excluding certain IRR performance-based options) were modified to time-based vesting.

The Company recognized total stock-based compensation of $16 million, $2 million, and $2 million for fiscal 2013, 2012 and 2011. 

The intrinsic value of options exercised or cash settled in fiscal 2013 was $40 million.

Information related to the equity incentive plans as of the fiscal year-end 2013 and 2012 is as follows:

		2013					2012
					Weighted					Weighted
		Number			Average		Number			Average
		Of			Exercise		Of			Exercise
		Shares			Price		Shares			Price
Options outstanding, beginning of period		10,741,090		$	7.76		10,826,232		$	7.70
Options granted		2,818,700			16.01		695,898			10.57
Options exercised or cash settled		(3,333,153	)		7.97		(175,412	)		7.33
Options forfeited or cancelled		(191,408	)		10.14		(605,628	)		7.43
Options outstanding, end of period		10,035,229		$	9.96		10,741,090		$	7.76
Option price range at end of period	$	3.04-17.59				$	3.04-15.04
Options exercisable at end of period		5,182,027					7,327,612
Options available for grant at period end		8,076,290					1,597,240
Weighted average fair value of options granted	$	6.15				$	2.71
during period

The fair value for options granted has been estimated at the date of grant using a Black-Scholes model, generally with the following weighted average assumptions:

	2013		2012		2011
Risk-free interest rate	.6	%	.6 -.9	%	1.30	%
Dividend yield	0.00	%	0.00	%	0.00	%
Volatility factor	.38		0.38		.32 -.34
Expected option life	7 years		5 years		5 years

The following table summarizes information about the options outstanding as of fiscal 2013:

Range of Exercise

Number

Intrinsic Value

Weighted Remaining

Weighted

Number

Intrinsic Value

Unrecognized

Weighted

Prices

Outstanding

of Outstanding

Contractual Life

Exercise Price

Exercisable

of Exercisable

Compensation

Recognition Period

$

3.04 - $17.59

10,035,229

$

106

6 years

$

9.96

5,182,027

$

64

$

15

2 years