3. Employee Stock Purchase and Stock Option Plans

Broad-Based, 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 during each of the last three fiscal years:

	2016		2015		2014
Aggregate Purchase Price Paid for Shares Sold:
Under the 1989 ESPP	$	23,631,241	$	28,621,800	$	30,354,723
Under the GESPP		2,660,067		3,535,479		3,314,046
Total	$	26,291,308	$	32,157,279	$	33,668,769
Aggregate Number of Shares Sold:
Under the 1989 ESPP	$	564,461	$	696,853	$	553,201
Under the GESPP		63,196		84,361		59,883
Total	$	627,657	$	781,214	$	613,084

At September 30, 2016, there remains 599,506 shares reserved for issuance under the 1989 ESPP and 64,628 shares reserved for issuance under the GESPP.

Stock Incentive Plans

We also sponsor the 1999 SIP and the 1999 ODSP. The 1999 SIP provides for the issuance of incentive stock options, nonqualified stock options, share appreciation rights ("SAR"), restricted stock, and restricted stock units to employees. The 1999 ODSP provides for awards of shares of common stock, restricted stock, and restricted stock units, and grants of nonqualified 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 30, 2016		10,532,310		597,910		11,130,220
Number of shares relating to outstanding stock options at September 30, 2016		3,299,137		278,375		3,577,512
Number of shares available for future awards:
At September 30, 2016		7,233,173		319,535		7,552,708
At October 2, 2015		7,103,759		41,125		7,144,884

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 during each of the last three fiscal years (in thousands):

	2016		2015		2014
Restricted Stock and Restricted Stock Units (service condition)	$	17,481	$	18,568	$	6,820
Restricted Stock Units (service, market, and performance conditions at target)		4,336		11,264		18,675
Total	$	21,817	$	29,832	$	25,495

The following table presents the Company’s total pre-tax compensation cost relating to share-based payments included in the accompanying Consolidated Statements of Earnings (in thousands):

2016				2015				2014
$	32,370			$	41,412			$	43,400

At September 30, 2016, the amount of compensation cost relating to nonvested awards not yet recognized in the financial statements is approximately $85.4 million. The majority of the unrecognized compensation costs will be recognized by the third quarter of fiscal 2019. The weighted average remaining contractual term of options currently exercisable is 5.4 years.

Stock Options

The following table summarizes the stock option activity for each of the last three fiscal years:

	Number of Stock Options			Weighted Average Exercise Price
Outstanding at September 27, 2013		4,606,212		$	52.33
Granted		602,525		$	53.51
Exercised		(718,065	)	$	47.18
Cancelled or expired		(269,525	)	$	54.46
Outstanding at September 26, 2014		4,221,147		$	53.23
Granted		614,759		$	43.56
Exercised		(34,000	)	$	31.54
Cancelled or expired		(729,199	)	$	86.15
Outstanding at October 2, 2015		4,072,707		$	46.06
Granted		460,770		$	42.17
Exercised		(412,416	)	$	40.88
Cancelled or expired		(543,549	)	$	49.13
Outstanding at September 30, 2016		3,577,512		$	45.69

Stock options outstanding at September 30, 2016 consisted entirely of nonqualified stock options. The following table presents the total intrinsic value of stock options exercised during each of the last three fiscal years (in thousands):

2016				2015				2014
$	4,149			$	442			$	9,590

The total intrinsic value of stock options exercisable at September 30, 2016 was approximately $17.9 million. The following table presents certain other information regarding our 1999 Plans:

	2016		2015		2014
At fiscal year end:
Range of exercise prices for options outstanding	$32.51–$80.63		$32.51–$80.63		$25.87–$94.11
Number of options exercisable		2,581,421		2,590,560		2,725,980
For the fiscal year:
Range of prices relating to options exercised	$36.88–$55.00		$25.87–$42.74		$20.98–$57.54
Estimated weighted average fair values of options granted	$	12.80	$	13.41	$	19.04

The following table presents certain information regarding stock options outstanding, and stock options exercisable at September 30, 2016:

	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		337,875		5.51		37.00		337,875		37.00
$37.43 - $46.37		2,096,554		5.87		42.67		1,328,450		42.60
$47.11 - $55.53		1,059,633		6.11		52.84		853,071		52.68
$60.08 - $80.63		83,450		5.48		65.99		62,025		67.93
		3,577,512		5.90		45.69		2,581,421		45.81

The 1999 Plans 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.

Restricted Stock

The following table presents the number of shares of restricted stock and restricted stock units issued under the 1999 SIP during each of the last three fiscal years:

	2016		2015		2014
Restricted stock		597,091		507,882		589,150
Restricted stock units (service condition)		183,131		126,635		287,545
Restricted stock units (service and performance conditions)		372,794		219,965		432,700

The amount of restricted stock units issued for awards with performance and market conditions in the above table are based on 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 described in Note 2 – Significant Accounting Policies.

The share amounts in the above tables reflect the Non-Fungible share counting of 1 share for each share of restricted stock and restricted stock unit issued.

The following table presents the number of shares of restricted stock and restricted stock units cancelled and withheld for taxes under the 1999 SIP during each of the last three fiscal years:

	2016		2015		2014
Restricted stock		512,903		326,480		147,221
Restricted stock units (service condition)		177,640		70,296		12,333
Restricted stock units (service and performance conditions)		275,933		194,116		52,000

The amount of restricted stock units cancelled for awards with market and performance conditions in the above table is based on the target amount.

The share amounts in the above tables reflect the Non-Fungible share counting of 1 share for each share of restricted stock and restricted stock unit issued.

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 and restricted stock units outstanding at September 30, 2016 under the 1999 SIP. Shares granted prior to September 29, 2012 are not Fungible (granted on a 1-to-1 basis). Shares Granted after September 28, 2012 are Fungible (granted on a 1.92 -to-1.00 basis):

	Not Fungible		Fungible		Total
Restricted stock		245,150		1,444,927		1,690,077
Restricted stock units (service condition)		57,300		466,588		523,888
Restricted stock units (service and performance conditions at target)		—		721,934		721,934

The following table presents the number of shares of restricted stock and restricted stock units issued under the 1999 ODSP during each of the last three fiscal years:

		2016				2015				2014
Restricted stock units (service condition)			23,090				13,500				15,000

The following table provides the number of shares of restricted stock and restricted stock units outstanding at September 30, 2016 under the 1999 ODSP:

	2016
Restricted stock		34,000
Restricted stock units (service condition)		88,590

All shares granted under the 1999 ODSP are issued on a 1-to-1 basis.