IHOP 2015 Annual Report Download - page 96

DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
76
13. Stock-Based Incentive Plans
General Description
Currently, the Company is authorized to grant stock options, stock appreciation rights, restricted stock, cash-settled and
stock-settled restricted stock units and performance units to officers, other employees and non-employee directors under the
DineEquity, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The 2011 Plan was approved by stockholders on May 17, 2011
and permits the issuance of up to 1,500,000 shares of the Company’s common stock for incentive stock awards. The 2011 Plan
will expire in May 2021.
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 stock
options issued under the 2001 Plan outstanding as of December 31, 2015.
The 2011 Plan and the 2001 Plan are collectively referred to as the “Plans.”
Stock-Based Compensation Expense
From time to time, the Company has granted nonqualified stock options, restricted stock, cash-settled and stock-settled
restricted stock units and performance units to officers, other employees and non-employee directors of the Company under the
Plans. The nonqualified stock options generally vest ratably over a three-year period in one-third increments and have a
maturity of ten years from the grant date. Options vest immediately upon a change in control of the Company, as defined in the
Plans. Option exercise prices equal the closing price of the Company's common stock on the New York Stock Exchange 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 from the date of grant or immediately
upon a change in control of the Company, as defined in the Plans. The Company either 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,
2015 2014 2013
(In millions)
Total stock-based compensation expense:
Equity classified awards expense............................................................... $ 9.0 $ 9.4 $ 9.4
Liability classified awards (credit) expense............................................... (0.4) 2.4 0.9
Total pre-tax stock-based compensation expense........................................... 8.6 11.8 10.3
Book income tax benefit ................................................................................. (3.3) (4.5) (3.9)
Total stock-based compensation expense, net of tax ...................................... $ 5.3 $ 7.3 $ 6.4
As of December 31, 2015, total unrecognized compensation cost related to restricted stock and restricted stock units of
$13.9 million and $3.2 million related to stock options is expected to be recognized over a weighted average period of
approximately 1.66 years for restricted stock and restricted stock units and 1.39 years for stock options.