SAUL CENTERS, INC. - 10-K filing on 2014-03-10

Stock Option Plan (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The following table summarizes the amount and activity of each grant, the total value and variables used in the computation and the amount expensed and included in general and administrative expense in the Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011:



SAUL CENTERS, INC. Notes to Consolidated Financial Statements
Stock options issued
	Directors
Grant date	4/26/2004			5/6/2005			5/1/2006				4/27/2007			4/25/2008			4/24/2009			5/7/2010			5/13/2011			5/4/2012			5/10/2013			Subtotals
Total grant	30,000			30,000			30,000				30,000			30,000			32,500			32,500			32,500			35,000			35,000			317,500
Vested	30,000			30,000			30,000				30,000			30,000			32,500			32,500			32,500			35,000			35,000			317,500
Exercised	25,000			22,500			5,000				—			—			17,500			5,000			5,000			5,000			2,500			87,500
Forfeited	—			—			2,500				7,500			7,500			—			2,500			2,500			—			—			22,500
Exercisable at December 31, 2013	5,000			7,500			22,500				22,500			22,500			15,000			25,000			25,000			30,000			32,500			207,500
Remaining unexercised	5,000			7,500			22,500				22,500			22,500			15,000			25,000			25,000			30,000			32,500			207,500
Exercise price	$	25.78		$	33.22		$	40.35			$	54.17		$	50.15		$	32.68		$	38.76		$	41.82		$	39.29		$	44.42
Volatility	0.183			0.198			0.206				0.225			0.237			0.344			0.369			0.358			0.348			0.333
Expected life (years)	5.0			10.0			9.0				8.0			7.0			6.0			5.0			5.0			5.0			5.0
Assumed yield	5.75		%	6.91		%	5.93		%		4.39		%	4.09		%	4.54		%	4.23		%	4.16		%	4.61		%	4.53		%
Risk-free rate	3.57		%	4.28		%	5.11		%		4.65		%	3.49		%	2.19		%	2.17		%	1.86		%	0.78		%	0.82		%
Total value at grant date	$	66,600		$	71,100		$	143,400			$	285,300		$	254,700		$	222,950		$	287,950		$	297,375		$	244,388		$	262,946		$	2,136,709
Forfeited options	—			—			—				—			—			—			—			—			—			—			—
Expensed in previous years	66,600			71,100			143,400				285,300			254,700			222,950			287,950			—			—			—			1,332,000
Expensed in 2011	—			—			—				—			—			—			—			297,375			—			—			297,375
Expensed in 2012	—			—			—				—			—			—			—			—			244,388			—			244,388
Expensed in 2013	—			—			—				—			—			—			—			—			—			262,946			262,946
Future expense	—			—			—				—			—			—			—			—			—			—			—
	Officers
Grant date	4/26/2004			5/6/2005			4/27/2007				5/13/2011			5/4/2012			5/10/2013						Subtotals									Grand Totals
Total grant	122,500			132,500			135,000				162,500			242,500			202,500						997,500									1,315,000
Vested	115,000			118,750			67,500				67,500			28,125			—						396,875									714,375
Exercised	103,750			69,500			—				16,250			1,875			—						191,375									278,875
Forfeited	7,500			13,750			67,500				41,250			130,000			—						260,000									282,500
Exercisable at December 31, 2013	11,250			49,250			67,500				51,250			26,250			—						205,500									413,000
Remaining unexercised	11,250			49,250			67,500				105,000			110,625			202,500						546,125									753,625
Exercise price	$	25.78		$	33.22		$	54.17			$	41.82		$	39.29		$	44.42
Volatility	0.183			0.207			0.233				0.330			0.315			0.304
Expected life (years)	7.0			8.0			6.5				8.0			8.0			8.0
Assumed yield	5.75		%	6.37		%	4.13		%		4.81		%	5.28		%	5.12		%
Risk-free rate	4.05		%	4.15		%	4.61		%		2.75		%	1.49		%	1.49		%
Total value at grant date	$	292,775		$	413,400		$	1,258,848			$	1,277,794		$	1,442,148		$	1,254,164					$	5,939,129								$	8,075,838
Forfeited options	17,925			35,100			—				252,300			813,800			—						1,119,125									1,119,125
Expensed in previous years	274,850			378,300			1,153,957				—			—			—						1,807,107									3,139,107
Expensed in 2011							104,891				186,347			—			—						291,238									588,613
Expensed in 2012							—				270,391			104,724			—						375,115									619,503
Expensed in 2013	—			—			—				235,350			157,083			209,027						601,460									864,406
Future expense	—			—			—				333,406			366,541			1,045,137						1,745,084									1,745,084
Weighted average term of remaining future expense							2.8			years

Summary of Option Activity

The table below summarizes the option activity for the years 2013, 2012, and 2011:



	2013				2012				2011
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at January 1	570,840		$	41.04	674,585		$	40.40	532,881		$	39.12
Granted	237,500		44.42		277,500		39.29		195,000		41.82
Exercised	(49,715	)	33.15		(149,995	)	31.03		(40,796	)	29.03
Expired/Forfeited	(5,000	)	52.16		(231,250	)	43.56		(12,500	)	45.05
Outstanding December 31	753,625		42.55		570,840		41.04		674,585		40.40
Exercisable at December 31	413,000		42.42		377,715		41.41		512,085		39.96