IHOP 2012 Annual Report Download - page 107

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
16. Stock-Based Incentive Plans (Continued)
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The IHOP Corp. 2001 Stock Incentive Plan (the "2001 Plan") was adopted in 2001 and amended and restated in 2005 and
2008 to authorize the issuance of up to 4,200,000 shares of common stock. The 2001 Plan has expired but there are restricted stock
awards and stock options issued under the 2001 Plan outstanding as of December 31, 2012.
The Stock Option Plan for Non-Employee Directors (the "Directors Plan") was adopted in 1994 and amended and restated
in 1999 to authorize the issuance of up to 400,000 shares of common stock pursuant to options to non-employee directors. The
Directors Plan has expired but there are stock options issued under the Directors Plan outstanding as of December 31, 2012.
The 2005 Stock Incentive Plan for Non-Employee Directors (the "2005 Plan") was adopted in 2005 to authorize the issuance
of up to 200,000 shares of common stock to non-employee members of the Company's Board of Directors. Awards may be made
in common stock, in options to purchase common stock, or in shares of Restricted Stock, or any combination thereof.
The 2011 Plan, the 2005 Plan, the 2001 Plan and the Directors Plan are collectively referred to as the "Plans."
Stock-Based Compensation Expense
From time to time, the Company has granted stock options and restricted stock to officers, directors and employees of the
Company under the Plans. The stock options generally vest ratably over a three-year period in one-third increments and have a
maturity of ten years from the issuance date. Options vest immediately upon a change in control of the Company, as defined in
the Plans. Option exercise prices equal the closing price on the New York Stock Exchange of the Company's common stock on
the date of grant. Restricted stock and restricted stock units are issued at no cost to the holder and vest over terms determined by
the Compensation Committee of the Company's Board of Directors, generally three years following the date of grant or immediately
upon a change in control of the Company, as defined in the Plans. The Company generally utilizes treasury stock or issues new
shares from its authorized but unissued share pool when vested stock options are exercised, when restricted stock awards are
granted and when restricted stock units settle in stock upon vesting.
The following table summarizes the Company's stock-based compensation expense included as a component of general and
administrative expenses in the consolidated financial statements:
Year Ended December 31,
2012 2011 2010
(In millions)
Total stock-based compensation:
Equity classified awards............................................................................. $ 11.4 $ 9.5 $ 13.1
Liability classified awards.......................................................................... 4.9 1.1 2.1
Total pre-tax compensation expense................................................................ 16.3 10.6 15.2
Book tax benefit ......................................................................................... (6.2) (4.2) (6.0)
Total stock-based compensation expense, net of tax ...................................... $ 10.1 $ 6.4 $ 9.2
As of December 31, 2012, total unrecognized compensation cost related to restricted stock and restricted stock units of $8.3
million and $6.7 million related to stock options is expected to be recognized over a weighted average period of approximately
1.76 years for restricted stock and restricted stock units and 1.69 years for stock options.