Note 4—Share-Based Compensation

The table below summarizes the share-based compensation expense for the three and nine months ended September 27, 2014 and September 28, 2013, respectively. This share-based compensation expense was recorded in selling, general, and administrative expenses in our Consolidated Statements of Operations. As used below: (i) “Performance-based RSUs” mean restricted share units with performance-based vesting granted under the Company’s 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”) or Amended and Restated Equity Plan (as defined below), as the case may be, (ii) “Time-based RSUs” mean restricted share units with time-based vesting granted under the 2010 Equity Incentive Plan or Amended and Restated Equity Plan, as the case may be, (iii) “Stock options” mean non-qualified stock options granted under the Amended and Restated Equity Plan, the 2010 Equity Incentive Plan, or the Restated 1986 Common Share Option Plan, as amended (the “Option Plan”), as the case may be, and (iv) “Director share awards” mean common shares issued in consideration of the annual board retainer fee to non-management members of our board of directors under the 2010 Equity Incentive Plan or Amended and Restated Equity Plan, as the case may be.


	For the Three Months Ended				For the Nine Months Ended
(in millions of U.S. dollars)	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Stock options	$	0.4	$	0.2	$	1.2	$	0.6
Performance-based RSUs		0.2		0.3		1.0		0.7
Time-based RSUs		0.7		0.6		2.1		1.5
Director share awards		0.2		—		0.6		0.8

Total	$	1.5	$	1.1	$	4.9	$	3.6

As of September 27, 2014, the unrecognized share-based compensation expense and years we expect to recognize it as compensation expense were as follows:


(in millions of U.S. dollars, except years)	Unrecognized share-based compensation expense as of September 27, 2014		Weighted average years expected to recognize compensation
Stock options	$	2.1		1.8
Performance-based RSUs		1.8		2.1
Time-based RSUs		3.7		1.8
Director share awards		0.2		0.3

Total	$	7.8

Stock option activity for the nine months ended September 27, 2014 was as follows:


	Shares (in thousands)			Weighted average exercise price
Balance at December 28, 2013		830		$	8.17
Awarded		441			8.00
Forfeited or expired		(50	)		16.45

Outstanding at September 27, 2014		1,221		$	7.77

Exercisable at September 27, 2014		113		$	4.94

During the nine months ended September 27, 2014, Performance-based RSU and Time-based RSU activity was as follows:


	Number of Performance- based RSUs (in thousands)			Weighted Average Grant-Date Fair Value		Number of Time-based RSUs (in thousands)			Weighted Average Grant-Date Fair Value
Balance at December 28, 2013		534		$	7.81		831		$	8.04
Awarded		274			8.00		368			8.00
Issued		—			—		(161	)		8.20
Forfeited		(31	)		7.90		(68	)		8.25

Outstanding at September 27, 2014		777		$	7.87		970		$	7.98

On February 14, 2013, our board of directors adopted an amendment and restatement of the 2010 Equity Incentive Plan (the “Amended and Restated Equity Plan”), pursuant to which the 2010 Equity Incentive Plan was amended and restated to, among other things, increase the number of shares that may be issued under the plan to 12,000,000 shares and to provide that the number of shares available for issuance will be reduced 2.0 shares for each share issued pursuant to a “full-value” award (i.e., an award other than an option or stock appreciation right) after the effective date of the amendment and restatement. The Amended and Restated Equity Plan was approved by Cott’s shareowners on April 30, 2013. Awards made in 2011 and 2012 prior to the amendment and restatement are generally governed by the terms of the 2010 Equity Incentive Plan without giving effect to these restrictions.

Certain outstanding stock options were granted under the Option Plan. Our board of directors terminated the Option Plan as of February 23, 2011, and no further awards will be granted under it. In connection with the termination of the Option Plan, outstanding options will continue in accordance with the terms of the Option Plan until exercised, forfeited or terminated, as applicable.