GNC 2012 Annual Report Download - page 106

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Table of Contents
NOTE 14. STOCK-BASED COMPENSATION PLANS (Continued)
The assumptions used in the Company's Black Scholes valuation related to stock option grants made during each period below were as follows:
Year ended December 31,
2011 2010 2009
Dividend yield 0.00% 0.00% 0.00%
Expected option life 4.5-7.0 years 7.5 years 7.5 years
Volatility factor percentage of market price 38.5%-39.2% 31.5%-33.00% 34.20%-44.60%
Discount rate 1.5%-2.9% 2.49%-3.28% 0.43%-3.28%
As the Black-Scholes option valuation model utilizes certain estimates and assumptions, the existing models do not necessarily represent the definitive
fair value of options for future periods. Assumptions used in the Black-Scholes option valuation model include volatility and, until the IPO, the fair value of
the stock, as the stock was not publicly traded. Volatility is estimated based upon the volatility in a sample peer group of companies. The fair value of the
stock was estimated based upon the net enterprise value of the Company, discounted to reflect the lack of liquidity and control associated with the stock.
The following table sets forth a summary of restricted stock units granted under the 2011 Stock Plan and related information for the year ended
December 31, 2011:
Restricted
Stock
Units
Weighted
Average Grant-
Date Fair Value
Granted 170,183 $ 21.94
Vested —
Expirations —
Forfeited (32,064) $ (20.14)
Outstanding at December 31, 2011 138,119 $ 22.35
NOTE 15. RETIREMENT PLANS
The Company sponsors a 401(k) defined contribution savings plan covering substantially all employees. Full time employees who have completed
30 days of service and part time employees who have completed 1,000 hours of service are eligible to participate in the plan. The plan provides for employee
contributions of 1% to 80% of individual compensation into deferred savings, subject to IRS limitations. The plan provides for Company contributions upon
the employee meeting the eligibility requirements. The Company match consists of both a fixed and a discretionary match which is based on a specified
financial target for all participants in the plan. The fixed match is 50% on the first 3% of the salary that an employee defers and the discretionary match could
be up to an additional 100% match on the 3% deferral. A discretionary match can be approved at any time by the Company.
An employee becomes vested in the Company match portion as follows:
Years of Service Percent
Vested
0-1 0%
1-2 33%
2-3 66%
3+ 100%
101