IHOP 2008 Annual Report Download - page 132

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
18. Stock-Based Incentive Plans (Continued)
stock, or in shares of common stock subject to certain restrictions (‘‘Restricted Stock’’), or any
combination thereof. The terms and conditions of awards granted are established by the Compensation
Committee of the Company’s Board of Directors, but become immediately vested upon a change in
control of the Company, as defined in the 2005 Plan. Options are to be granted at an option price not
less than 100% of the fair market value of the stock on the date of grant. The 2005 Plan provides for
an initial grant of Restricted Stock (‘‘Initial Grant’’). At the end of a specified performance period, the
number of shares in the Initial Grant will be increased or decreased, based on the percentage increase
or decrease in the fair market value of the Company’s common stock during the performance period.
Stock Options
Stock option activity for the years ended December 31, 2008, 2007 and 2006 is summarized as
follows:
Weighted Average
Exercise Price Weighted Average
Number of Per Remaining Contractual Aggregate Intrinsic
Shares Under Option Shares Share Term (in Years) Value
Outstanding at December 31, 2005 . 1,078,833 $33.93
Granted .................... 10,850 50.96
Exercised ................... (204,447) 29.07
Terminated .................. (60,547) 42.71
Outstanding at December 31, 2006 . 824,689 34.71
Granted .................... 7,900 57.26
Exercised ................... (282,517) 31.69
Terminated .................. (8,316) 48.67
Outstanding at December 31, 2007 . 541,756 36.41
Granted .................... 576,000 36.05
Exercised ................... (41,500) 23.82
Terminated .................. (142,317) 38.86
Outstanding at December 31, 2008 . 933,939 $36.37 7.17 $—
Vested and Expected to Vest at
December 31, 2008 .......... 865,447 $36.43 7.00 $—
Exercisable at December 31, 2008 . 425,216 $37.36 4.64 $—
The per share weighted-average grant date fair value of options granted during the years 2008,
2007 and 2006 was $18.70, $14.21 and $13.81, respectively.
The total intrinsic value of options exercised during the years ended December 31, 2008, 2007 and
2006 was $1.8 million, $7.8 million and $4.5 million, respectively.
Cash received from options exercised under all stock-based payment arrangements for the years
ended December 31, 2008, 2007 and 2006 was $1.0 million, $8.9 million and $5.9 million, respectively.
The actual tax benefit realized for the tax deduction from option exercises under the stock- based
payment arrangements totaled $1.9 million, $3.0 million and $1.7 million, respectively, for the years
ended December 31, 2008, 2007 and 2006.
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