IHOP 2015 Annual Report Download - page 97

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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
13. Stock-Based Incentive Plans (Continued)
77
Equity Classified Awards - Stock Options
The per share fair values of the stock options granted have been estimated as of the date of grant using the Black-Scholes
option pricing model. The Black-Scholes model considers, among other factors, the expected life of the option and the
historical 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:
2015 2014 2013
Risk free interest rate ...................................................................................... 1.5% 1.6% 0.8%
Weighted average historical volatility............................................................. 36.8% 51.1% 83.4%
Dividend yield................................................................................................. 3.2% 3.7% 4.2%
Expected years until exercise.......................................................................... 4.5 4.6 4.6
Weighted average fair value of options granted.............................................. $ 27.20 $ 26.87 $ 36.00
Stock option activity for the years ended December 31, 2015, 2014 and 2013 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
(in Millions)
Outstanding at December 31, 2012 ..................................... 958,246 $ 39.67
Granted ................................................................................ 81,328 72.28
Exercised ............................................................................. (225,272) 40.31
Forfeited .............................................................................. (39,243) 55.78
Outstanding at December 31, 2013 ..................................... 775,059 42.09
Granted ................................................................................ 120,932 81.53
Exercised ............................................................................. (256,910) 31.95
Forfeited .............................................................................. (20,966) 69.18
Outstanding at December 31, 2014 ..................................... 618,115 53.10
Granted ................................................................................ 133,814 111.54
Exercised ............................................................................. (218,412) 43.66
Forfeited .............................................................................. (29,055) 99.97
Outstanding at December 31, 2015 ..................................... 504,462 $ 69.99 6.7 $ 10.5
Vested and Expected to Vest at December 31, 2015............ 485,616 $ 68.71 6.7 $ 10.5
Exercisable at December 31, 2015...................................... 310,543 $ 52.56 5.5 $ 10.1
The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $12.6 million,
$13.2 million and $7.5 million, respectively.
Cash received from options exercised under all stock-based payment arrangements for the years ended December 31, 2015,
2014 and 2013 was $9.5 million, $8.2 million and $9.1 million, respectively. The actual tax benefit realized for the tax
deduction from option exercises under the stock-based payment arrangements totaled $4.9 million, $4.3 million and $3.7
million, respectively, for the years ended December 31, 2015, 2014 and 2013.