IHOP 2008 Annual Report Download - page 133

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
18. Stock-Based Incentive Plans (Continued)
The following table summarizes information regarding outstanding and exercisable options at
December 31, 2008:
Weighted
Number of Weighted Average Weighted
Shares Average Exercise Number of Average
Outstanding Remaining Price Shares Exercise
as of Contractual Per Exercisable as of Price Per
Range of Exercise Prices 12/31/2008 Life Share 12/31/2008 Share
$11.65-$22.30 ..................... 89,666 3.64 $17.39 67,166 $19.21
$23.05-$23.05 ..................... 125,000 9.56 $23.05 — $ —
$24.00-$35.79 ..................... 101,998 4.14 $31.53 101,998 $31.53
$36.10-$38.88 ..................... 71,465 5.18 $36.13 71,465 $36.13
$40.00-$40.00 ..................... 310,000 9.16 $40.00 — $ —
$40.98-$47.90 ..................... 55,998 7.56 $45.65 25,998 $43.61
$48.09-$48.09 ..................... 150,346 5.77 $48.09 150,346 $48.09
$50.67-$51.20 ..................... 22,566 8.49 $50.87 5,936 $50.90
$55.02-$55.02 ..................... 4,400 8.15 $55.02 1,470 $55.02
$62.00-$62.00 ..................... 2,500 8.81 $62.00 837 $62.00
$11.65-$62.00 ..................... 933,939 7.17 $36.37 425,216 $37.36
The following table summarizes the Company’s nonvested options as of December 31, 2008, 2007
and 2006 and changes during the years ended December 31, 2008 and 2007:
Weighted Average
Number of Grant-Date Fair
Nonvested Options Shares Value Per Share
Nonvested at December 31, 2006 .................. 267,195 $44.48
Granted .................................... 7,800 57.26
Vested ..................................... (167,004) 42.68
Forfeited ................................... (7,816) 48.67
Nonvested at December 31, 2007 .................. 100,175 48.30
Granted .................................... 576,000 36.05
Vested ..................................... (92,153) 47.73
Forfeited ................................... (75,299) 41.43
Nonvested at December 31, 2008 .................. 508,723 $35.55
Fair Value Disclosure
The per share fair values of the stock options granted have been estimated as of the date of grant
or assumption using the Black-Scholes option pricing model. The Black-Scholes model considers,
among other factors, the expected life of the option and the expected volatility of the Company’s stock
price. The Black-Scholes model meets the requirement of SFAS 123(R) but the fair values generated by
119