Wendy's 2013 Annual Report Download - page 103

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Dividends paid to The Wendy’s Company from its subsidiaries totaled $170,000 in 2013. No dividends were
paid in 2012 or 2011.
(14) Share-Based Compensation
The Company maintains several equity plans (the “Equity Plans”) which collectively provide or provided for
the grant of stock options, restricted shares, tandem stock appreciation rights, restricted share units and performance
shares (collectively, the “Grants”) to certain officers, other key employees, non-employee directors and consultants.
The Company has not granted any tandem stock appreciation rights. During 2010, the Company implemented the
2010 Omnibus Award Plan (the “2010 Plan”) for the issuance of equity awards as described above. All equity grants
during 2013 and 2012 were issued from the 2010 Plan and it is currently the only equity plan from which future
equity awards may be granted. As of December 29, 2013, there were approximately 33,213 shares of common stock
available for future grants under the 2010 Plan. During the periods presented in the consolidated financial statements,
the Company settled all stock option exercises and the vesting of restricted shares and performance shares with
treasury shares.
Stock Options
The Company’s current outstanding stock options have maximum contractual terms of ten years and vest
ratably over three years or cliff vest after three years. The exercise price of options granted is equal to the market price
of the Company’s common stock on the date of grant. The fair value of stock options on the date of grant is
calculated using the Black-Scholes Model. The aggregate intrinsic value of an option is the amount by which the fair
value of the underlying stock exceeds its exercise price. The following table summarizes stock option activity during
2013.
Number of
Options
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life in Years
Aggregate
Intrinsic
Value
Outstanding at December 30, 2012 ........................... 28,561 $6.05
Granted ................................................. 4,941 7.90
Exercised ................................................ (9,899) 4.89
Forfeited and/or expired .................................... (3,070) 9.21
Outstanding at December 29, 2013 ........................... 20,533 $6.58 6.2 $52,431
Vested or expected to vest at December 29, 2013 ................. 20,002 $6.59 6.1 $51,023
Exercisable at December 29, 2013 ............................. 9,911 $7.08 3.3 $24,283
The total intrinsic value of options exercised during 2013, 2012 and 2011 was $28,038, $2,280 and $1,138,
respectively. The weighted average grant date fair value for stock options granted during 2013, 2012 and 2011 was
$2.72, $1.80 and $1.88, respectively.
The grant date fair value of stock options was determined using the following assumptions:
2013 2012 2011
Risk-free interest rate ...................................................... 1.60% 0.98% 1.74%
Expected option life in years ................................................ 5.62 6.62 5.62
Expected volatility ........................................................ 45.6% 45.9% 45.2%
Expected dividend yield .................................................... 2.52% 1.71% 1.59%
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