Chili's 2008 Annual Report Download - page 64

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BRINKER INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
11. LEASES (Continued)
(c) Commitments
As of June 25, 2008, future minimum lease payments on capital and operating leases were as follows
(in thousands):
Fiscal Capital Operating
Year Leases Leases
2009 ........................................... $ 4,948 $121,864
2010 ........................................... 5,040 114,076
2011 ........................................... 5,134 106,310
2012 ........................................... 5,244 96,882
2013 ........................................... 5,342 85,927
Thereafter ...................................... 44,503 345,586
Total minimum lease payments ...................... 70,211 $870,645
Imputed interest (average rate of 7%) ................. (23,704)
Present value of minimum lease payments .............. 46,507
Less current installments .......................... (1,973)
$ 44,534
As of June 25, 2008, we had entered into other lease agreements for restaurant facilities currently
under construction or yet to be constructed. Classification of these leases as capital or operating has not
been determined as construction of the leased properties has not been completed.
12. STOCK-BASED COMPENSATION
In November 2005, our shareholders approved the Performance Share Plan, the Restricted Stock Unit
Plan, and amendments to the 1998 Stock Option and Incentive Plan and the 1999 Stock Option and
Incentive Plan for Non-Employee Directors and Consultants (collectively, the ‘‘Plans’’), authorizing the
issuance of up to 33.3 million shares of our common stock to employees and non-employee directors and
consultants. The Plans provide for grants of options to purchase our common stock, restricted stock,
restricted stock units, performance shares and stock appreciation rights.
(a) Stock Options
Expense related to stock options issued to eligible employees under the Plans is recognized using a
graded-vesting schedule over the vesting period. For options granted after the adoption of SFAS 123R on
June 30, 2005, expense is recognized to the date on which retirement eligibility is achieved, if shorter than
the vesting period. Stock options generally vest over a period of 1 to 4 years and have contractual terms to
exercise of 8 to 10 years. Full or partial vesting of awards may occur upon a change in control (as defined in
the Plans), or upon an employee’s death, disability or involuntary termination.
F-30