IHOP 2012 Annual Report Download - page 108

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
16. Stock-Based Incentive Plans (Continued)
90
Stock Options - Equity Classified Awards
Stock option activity for the years ended December 31, 2012, 2011 and 2010 is summarized as follows:
Number of
Shares under
Option
Weighted
Average
Exercise Price
Per Share
Weighted
Average
Remaining
Contractual
Term (in Years)
Aggregate
Intrinsic
Value
Outstanding at December 31, 2009 ..................................... 1,659,100 $ 21.30
Granted ................................................................................ 415,804 31.26
Exercised ............................................................................. (475,705) 16.75
Forfeited .............................................................................. (50,222) 25.84
Expired ................................................................................ (25,267) 44.93
Outstanding at December 31, 2010 ..................................... 1,523,710 24.90
Granted ................................................................................ 233,449 53.04
Exercised ............................................................................. (393,075) 17.11
Forfeited .............................................................................. (42,593) 27.89
Expired ................................................................................ (2,851) 47.08
Outstanding at December 31, 2011 ..................................... 1,318,640 32.06
Granted ................................................................................ 147,674 51.63
Exercised ............................................................................. (455,217) 20.91
Forfeited .............................................................................. (39,381) 46.97
Expired ................................................................................ (13,470) 38.64
Outstanding at December 31, 2012 ..................................... 958,246 $ 39.67 6.55 $ 25,355,000
Vested and Expected to Vest at December 31, 2012............ 924,500 $ 39.29 6.47 $ 24,791,000
Exercisable at December 31, 2012...................................... 601,522 $ 35.57 5.52 $ 18,383,000
The total intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010 was $15.0 million,
$14.6 million and $12.0 million, respectively.
Cash received from options exercised under all stock-based payment arrangements for the years ended December 31, 2012,
2011 and 2010 was $9.3 million, $6.7 million and $8.0 million, respectively. The actual tax benefit realized for the tax deduction
from option exercises under the stock-based payment arrangements totaled $6.2 million, $6.0 million and $2.7 million, respectively,
for the years ended December 31, 2012, 2011 and 2010.
Fair Value of Stock Options
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 requirements of U.S. GAAP but the fair
values generated by 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:
2012 2011 2010
Risk free interest rate ...................................................................................... 0.9% 1.8% 2.2%
Weighted average historical volatility............................................................. 84.5% 79.1% 80.4%
Dividend yield................................................................................................. —% —% —%
Expected years until exercise.......................................................................... 4.7 4.6 4.8
Forfeitures....................................................................................................... 11.0% 11.0% 11.0%
Weighted average fair value of options granted.............................................. $ 33.53 $ 34.31 $ 19.93