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DineEquity, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
13. Stock-Based Incentive Plans (Continued)
78
Equity Classified Awards - Restricted Stock and Restricted Stock Units
Activity in equity classified awards of restricted stock and restricted stock units for the years ended December 31, 2015, 2014
and 2013 is as follows:
Shares of
Restricted Stock
Weighted
Average
Grant-Date Per
Share
Fair Value Restricted
Stock Units
Weighted
Average
Grant-Date
Per Share
Fair Value
Outstanding at December 31, 2012 ..................................... 346,563 $ 44.74 33,242 $ 41.19
Granted ................................................................................ 97,812 73.11 15,804 72.04
Conversion of cash-settled restricted stock units ................ — — 37,184 72.28
Released............................................................................... (117,075) 30.96 (39,000) 54.66
Forfeited .............................................................................. (61,048) 55.37 — —
Outstanding at December 31, 2013 ..................................... 266,252 58.87 47,230 64.57
Granted ................................................................................ 102,618 82.18 13,879 81.65
Released............................................................................... (94,798) 53.03 (19,487) 70.82
Forfeited .............................................................................. (40,254) 67.68 — —
Outstanding at December 31, 2014 ..................................... 233,818 70.14 41,622 66.92
Granted ................................................................................ 138,518 102.78 10,630 111.72
Released............................................................................... (77,042) 54.89 (16,567) 52.19
Forfeited .............................................................................. (37,700) 86.77 (569) 101.55
Outstanding at December 31, 2015 ..................................... 257,594 $ 89.99 35,116 $ 86.30
Liability Classified Awards
The Company previously had issued shares of cash-settled restricted stock units to members of the Board of Directors.
Originally, these instruments were expected to be settled in cash and were recorded as liabilities based on the closing price of
the Company’s common stock as of each period end. In February 2013, it was determined that, pursuant to the terms of the
Plan, these restricted stock units would be settled in shares of common stock and 37,184 restricted stock units, representing all
outstanding units, were converted to equity classified awards. For the year ended December 31, 2013, $0.3 million was
included as stock-based compensation expense related to these cash-settled restricted stock units prior to conversion.
The Company has granted cash long-term incentive awards to certain employees (“LTIP awards”). Annual LTIP awards
vest over a three-year period and are determined using a multiplier from 0% to 200% of the target award based on the total
shareholder return of DineEquity, Inc. common stock compared to the total shareholder returns of a peer group of companies.
Though LTIP awards are only paid in cash, since the multiplier is based on the price of the Company's common stock, the
awards are considered stock-based compensation in accordance with U.S. GAAP and are classified as liabilities. For the years
ended December 31, 2015, 2014 and 2013, a credit of $0.4 million and expenses of $2.4 million and $0.6 million, respectively,
were included in stock-based compensation expense related to the LTIP awards. At December 31, 2015 and 2014, liabilities of
$1.6 million and $4.0 million, respectively, were included as accrued employee compensation and benefits in the consolidated
balance sheets.
14. Employee Benefit Plans
401(k) Savings and Investment Plan
Effective January 1, 2013, the Company amended the DineEquity, Inc. 401(k) Plan to (i) modify the Company matching
formula and (ii) eliminate the one-year completed service requirement that previously had to be met to become eligible for
Company matching contributions. As amended, the Company matches 100% of the first four percent of the employee's eligible
compensation deferral and 50% of the next two percent of the employee's eligible compensation deferral. All contributions
under this plan vest immediately. DineEquity common stock is not an investment option for employees in the 401(k) plan, other
than shares transferred from a prior employee stock ownership plan. Substantially all of the administrative cost of the 401(k)
plan is borne by the Company. The Company's matching contribution expense was $2.4 million, $2.3 million and $2.3 million
for the years ended December 31, 2015, 2014 and 2013, respectively.