Papa Johns 2010 Annual Report Download - page 92

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85
16. Share Repurchase Program
The Company’s Board of Directors authorized the repurchase of up to $825.0 million of common stock
through December 31, 2011, of which $36.9 million remained available for repurchase at December 26,
2010. Funding for the share repurchase program has been provided through a credit facility, operating
cash flow, stock option exercises and cash and cash equivalents.
Subsequent to year-end (through February 15, 2011), we acquired an additional 66,000 shares at an
aggregate cost of $1.8 million. As of February 15, 2011, approximately $35.0 million remained available
for repurchase of common stock under this authorization.
17. Equity Compensation
We award stock options and restricted stock from time to time under the Papa John’s International, Inc.
2008 Omnibus Incentive Plan (the “Omnibus Plan”) and other such agreements as may arise. Shares of
common stock authorized for issuance under the Omnibus Plan are approximately 3.7 million.
Approximately 2.4 million shares were available for future issuance under the Omnibus Plan as of
December 26, 2010. Option awards are granted with an exercise price equal to the market price of the
Company’s stock at the date of grant. Options granted prior to 2003 generally expire ten years from the
date of grant and vest over one to five-year periods. Options granted after 2005 generally expire five
years from the date of grant and vest over a 24- or 36-month period.
We recorded stock-based employee compensation expense of $6.1 million in 2010, $5.8 million in 2009
and $2.6 million in 2008. The total income tax benefit recognized in the income statement for share-
based compensation arrangements was $2.2 million in 2010, $2.1 million in 2009 and $930,000 in 2008.
At December 26, 2010, there was $5.8 million of unrecognized compensation cost related to nonvested
option awards and restricted stock, of which the Company expects to recognize $3.9 million in 2011,
$1.6 million in 2012 and $300,000 in 2013.
Stock Options
Options exercised included 356,000 shares in 2010, 612,000 shares in 2009 and 260,000 shares in 2008.
The total intrinsic value of the options exercised during 2010, 2009 and 2008 was $2.6 million, $4.3
million and $2.8 million, respectively. Cash received upon the exercise of stock options was $6.4 million,
$9.8 million and $4.6 million during 2010, 2009 and 2008, respectively, and the related tax benefits
realized were approximately $943,000, $1.5 million and $1.0 million during the corresponding periods.