IHOP 2008 Annual Report Download - page 135

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
18. Stock-Based Incentive Plans (Continued)
Restricted Stock
Restricted stock activity for the years ended December 31, 2008 and 2007 is set forth below:
Weighted Average
Number of Grant-Date Per Share
Shares Fair Value
Nonvested at December 31, 2006 ............ 168,100 $50.31
Granted .............................. 277,190 54.72
Released .............................. — —
Forfeited .............................. (10,000) 52.96
Nonvested at December 31, 2007 ............ 435,290 53.04
Granted .............................. 399,785 38.75
Released .............................. (72,520) 55.89
Forfeited .............................. (91,075) 46.19
Nonvested at December 31, 2008 ............ 671,480 $45.07
19. Employee Benefit Plans
401(K) Savings and Investment Plan
In 2001, the Company adopted a defined contribution plan authorized under Section 401(K) of the
Internal Revenue Code. The plan covers Company employees who meet the minimum credited service
requirements of the 401(K) plan. Employees whose terms of service are covered by a collective
bargaining agreement are not eligible. Employees may contribute the maximum allowable for the
current year of their pre-tax covered compensation as determined by the limitations of the tax code.
DineEquity, Inc. common stock is not an investment option for employees in the 401(K) plan.
Substantially all of the administrative cost of the 401(K) plan is borne by the Company. Beginning in
2004, the Company matches 100% of the employees’ contributions up to 3% of eligible compensation.
The Company’s contribution was $0.6 million, $0.7 million and $0.6 million for the years ended
December 31, 2008, 2007, and 2006, respectively.
Beginning with the 2005 plan year, the Company has funded, to eligible participants in the 401(K)
plan, a profit sharing cash contribution equal to 3% of eligible compensation. For the 2008 plan year,
the contribution is estimated to be $0.9 million and will be paid in early 2009. The Company’s
contribution was $1.0 million and $0.9 million for the plan years 2007 and 2006, respectively.
In 1992, Predecessor Applebee’s established a defined contribution plan authorized under
Section 401(K) of the Internal Revenue Code which has been assumed by the Company in connection
with the acquisition. The Company will make matching cash contributions of 50% of each eligible
employee’s contributions not to exceed 4.0% of their annual compensation. Contributions under this
plan will vest 100% immediately. The Company made no cash contributions in the period subsequent
to the acquisition date.
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