IHOP 2009 Annual Report Download - page 145

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
18. Stock-Based Incentive Plans (Continued)
the model may not be indicative of the actual fair values of the Company’s stock-based awards. The
following table summarizes the assumptions used to value options granted in the respective periods:
2009 2008 2007
Risk free interest rate ........................ 1.95% 2.83% 4.39%
Weighted average historical volatility .............. 72.3% 77.9% 24.9%
Dividend yield .............................. — 3.09% 1.75%
Expected years until exercise ................... 5 Years 5 Years 5 Years
Forfeitures ................................ 11.0% 7.02% 6.72%
Weighted average fair value of options granted ...... $ 5.03 $ 18.70 $ 14.21
Restricted Stock
Restricted stock activity for the years ended December 31, 2009, 2008 and 2007 is set forth below:
Weighted Average
Number of Grant-Date Per Share
Shares Fair Value
Unvested at December 31, 2006 ................ 168,100 $50.31
Granted ................................. 277,190 54.72
Forfeited ................................. (10,000) 52.96
Unvested at December 31, 2007 ................ 435,290 53.04
Granted ................................. 399,785 38.75
Released ................................. (72,520) 55.89
Forfeited ................................. (91,075) 46.19
Unvested at December 31, 2008 ................ 671,480 45.07
Granted ................................. 241,125 10.92
Released ................................. (139,649) 51.40
Forfeited ................................. (122,633) 34.23
Unvested at December 31, 2009 ................ 650,323 $33.09
19. Employee Benefit Plans
401(k) Savings and Investment Plan
Effective January 1, 2009, the Company amended the DineEquity, Inc. 401(k) Plan to (i) include
salaried and hourly employees of Applebee’s, and (ii) modify the Company matching formula. As
amended, the Company matches 100% of the first three percent of the employee’s eligible
compensation deferral and 50% of the next two percent of the employee’s eligible compensation
deferral. All contributions under this plan vest immediately. The Company’s contribution was
$3.5 million for the year ended December 31, 2009.
In 2001, the Company adopted a defined contribution plan authorized under Section 401(k) of the
Internal Revenue Code. The plan covered IHOP employees who met the minimum credited service
requirements of the 409(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
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