IHOP 2014 Annual Report Download - page 105

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
11. Stockholders' Equity (Continued)
86
multiplying (i) each $1,000 of aggregate accreted value of the shares to be converted by (ii) the conversion rate then in effect
(which initially was 14.44878 shares of common stock per $1,000 of accreted value, but subject to customary anti-dilution
adjustments).
The Company also entered into a registration rights agreement, dated as of November 29, 2007, with Chilton pursuant to
which the Company granted Chilton certain registration rights with respect to the shares of Series B Convertible Preferred
Stock issued to Chilton and the shares of common stock issuable upon conversion.
In January 2011, 100 shares of Series B Convertible Preferred Stock with an accreted value of approximately $120,000
were converted by the holder into 1,737 shares of the Company's common stock. On November 29, 2012, the fifth anniversary
of the issue date, the remaining 34,900 outstanding shares of Series B Convertible Preferred Stock, with an accreted value of
approximately $47.0 million, were automatically converted into 679,168 shares of the Company's common stock.
On December 14, 2012, the Company filed a Certificate of Elimination of the Series B Convertible Preferred Stock with
the Secretary of State of the State of Delaware to eliminate its Series B Convertible Preferred Stock. The Certificate of
Elimination, effective upon filing, had the effect of eliminating from the Corporation’s Restated Certificate of Incorporation, as
amended, all matters set forth in the Certificate of Designations of the Series B Preferred Stock with respect to such series,
which was previously filed by the Corporation with the Secretary of State on November 29, 2007.
Stock Repurchase Programs
On February 26, 2013, the Company's Board of Directors approved a stock repurchase authorization of up to $100 million
of DineEquity common stock (the “2013 Authorization”). On October 27, 2014, the Company's Board of Directors approved
increasing the share repurchase authorization back to the previous level of $100 million (the “2014 Authorization”). During the
year ended December 31, 2014, the Company purchased 367,256 shares of our common stock under the 2013 authorization for
a total of $30.0 million and 20,335 shares under the 2014 Authorization for a total of $2.0 million. The Company may
repurchase up to an additional $98.0 million of our common stock under the 2014 Authorization.
During the year ended December 31, 2013, the Company repurchased 412,022 shares of stock for $29.7 million. There
were no stock repurchases in 2012.
Treasury Stock
Repurchases of DineEquity common stock are included in treasury stock at the cost of shares repurchased plus any
transaction costs. Treasury stock may be re-issued when vested stock options are exercised, when restricted stock awards are
granted and when restricted stock units settle in stock upon vesting. The cost of treasury stock re-issued is determined on the
first-in, first-out (“FIFO”) method. The Company re-issued 359,528 shares, 318,644 shares and 433,732 shares, respectively,
during the years ended December 31, 2014, 2013 and 2012 at a total FIFO cost of $13.0 million, $11.7 million and $14.1
million, respectively.