Papa Johns 2014 Annual Report Download - page 95

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82
18. Equity Compensation (continued)
Options granted generally vest in equal installments over three years and expire ten years after grant. The
expected term for these options represents the period of time that options granted are expected to be
outstanding and was calculated using the simplified method prescribed by Securities and Exchange
Commission rules and regulations as there was insufficient historical detail to be used as an alternative
basis to estimating the term.
The weighted average grant-date fair values of options granted during 2014, 2013 and 2012 was $16.48,
$9.87 and $7.04, respectively. The Company granted 293,000, 498,000 and 508,000 options in 2014,
2013 and 2012, respectively.
Restricted Stock and Restricted Stock Units
In 2014, 2013 and 2012, we granted shares of restricted stock that were time-based and generally vest in
equal installments over three years. These restricted shares are intended to focus participants on our long-
range objectives, while at the same time serving as a retention mechanism. We consider time-based
restricted stock awards to be participating securities because holders of such shares have non-forfeitable
dividend rights. We declared dividends totaling $128,000 ($0.53 per share) in 2014 and $86,000 ($0.25
per share) in 2013 to holders of time-based restricted stock.
Additionally, we granted shares of performance-based restricted stock units to executive management
(17,000 in 2014, 3,000 in 2013, and 108,000 in 2012). The vesting of these awards (a three-year cliff vest)
is dependent upon the Company’s achievement of a compounded annual growth rate of earnings per share
and the achievement of certain sales and unit growth metrics. The performance measures for the 2012 and
2013 grants were achieved and the shares will vest in February 2015.
The fair value of both time-based restricted stock and performance-based restricted stock units is based on
the market price of the Company’s shares on the grant date. Information pertaining to restricted stock
activity during 2014, 2013 and 2012 is as follows (shares in thousands):
Weighted
Average
Grant-Date
Shares Fair Value
Total as of December 25, 2011 500 14.10$
Granted 266 18.59
Forfeited (74) 15.46
Vested (156) 13.89
Total as of December 30, 2012 536 16.31
Granted 160 27.09
Forfeited (70) 18.56
Vested (203) 15.51
Total as of December 29, 2013 423 20.39
Granted 106 49.31
Forfeited (40) 27.79
Vested (203) 18.05
Total as of December 28, 2014 286 31.81$