Dunkin' Donuts 2012 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2012 Dunkin' Donuts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

-81-
A summary of the status of the Company’s nonexecutive and 2011 Plan options as of December 29, 2012 and changes during
fiscal year 2012 is presented below:
Number of
shares
Weighted
average
exercise
price
Weighted
average
remaining
contractual
term (years)
Aggregate
intrinsic
value
(in millions)
Share options outstanding at December 31, 2011 647,757 $ 14.65 8.9
Granted 746,100 30.63
Exercised (59,952) 5.32
Forfeited or expired (38,549) 12.75
Share options outstanding at December 29, 2012 1,295,356 24.34 8.8 $ 10.5
Share options exercisable at December 29, 2012 180,619 13.27 7.3 3.4
The total grant-date fair value of nonexecutive and 2011 Plan stock options vested during fiscal years 2012, 2011, and 2010
was $1.0 million, $176 thousand, and $58 thousand, respectively. The total intrinsic value of nonexecutive and 2011 Plan stock
options exercised was $1.5 million and $605 thousand for fiscal years 2012 and 2011, respectively. No nonexecutive and 2011
Plan stock options were exercised during fiscal year 2010. As of December 29, 2012, there was $9.4 million of total
unrecognized compensation cost related to nonexecutive and 2011 Plan options. Unrecognized compensation cost is expected
to be recognized over a weighted average period of approximately 3.2 years.
(15) Earnings per Share
The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share
amounts):
Fiscal year ended
December 29,
2012
December 31,
2011
December 25,
2010
Net income attributable to Dunkin' Brands—basic and diluted $ 108,308 34,442 26,861
Allocation of net income (loss) to common stockholders(1):
Class L—basic and diluted n/a $ 140,212 111,026
Common—basic(2) $ 108,176 (105,770)(84,165)
Common—diluted(2) 108,197 (105,770)(84,165)
Weighted average number of common shares—basic and diluted:
Class L—basic and diluted(3) n/a 22,845,378 22,806,796
Common—basic 114,584,063 74,835,697 41,295,866
Common—diluted(4) 116,573,344 74,835,697 41,295,866
Earnings (loss) per common share:
Class L—basic n/a $ 6.14 4.87
Common—basic $ 0.94 (1.41)(2.04)
Common—diluted 0.93 (1.41)(2.04)
(1) As the Company had both Class L and common stock outstanding during fiscal years 2011 and 2010, and Class L had
preference with respect to all distributions, earnings per share was calculated using the two-class method, which requires
the allocation of earnings to each class of common stock. The numerator in calculating Class L basic and diluted earnings
per share is the Class L preference amount accrued at 9% per annum during fiscal years 2011 and 2010 plus, if positive, a
pro rata share of an amount equal to consolidated net income less the Class L preference amount. The Class L preferential
distribution amounts accrued were $45.1 million and $111.0 million during fiscal years 2011 and 2010, respectively. The
Class L preferential distribution amounts for fiscal year 2011 declined from the prior year due to the conversion of the
Class L shares into common stock immediately prior to the Company’s initial public offering that was completed on
August 1, 2011, as well as the dividend paid to holders of Class L shares on December 3, 2010, which reduced the Class L
per-share preference amount on which the 9% annual return was calculated. Additionally, the numerator in calculating the
Class L basic and diluted earnings per share for fiscal year 2011 includes an amount representing the excess of the fair
value of the consideration transferred to the Class L shareholders upon conversion to common stock over the carrying