Comfort Inn 2007 Annual Report Download - page 87

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The components of the Company’ s pretax stock-based compensation expense and associated income tax benefits are
as follows for the years ended December 31:
(In millions) 2007
2006
2005
Stock options................................................................................................................................................... $ 2.9 $ 3.9 $ 1.8
Restricted stock............................................................................................................................................... 5.5
5.2 3.5
Performance vested restricted stock units....................................................................................................... 0.9
0.8 —
Total................................................................................................................................................................ $ 9.3 $ 9.9 $ 5.3
Income tax benefits......................................................................................................................................... $ 3.5 $ 3.7 $ 2.0
Stock-based compensation expense on stock option and performance vested restricted stock units made to a
retirement eligible executive officer during the years ended December 31, 2007 and 2006 was recognized upon issuance
of the grants rather than over the awards’ vesting period since the terms of the grant provide that the awards will vest upon
retirement of the employee. Compensation costs recognized in 2007 related to the vesting upon retirement eligibility
totaled $0.9 million and $0.6 million for stock options and performance vested restricted stock units, respectively.
Compensation costs recognized in 2006 totaled $0.9 million and $0.4 million for stock options and performance vested
restricted stock units, respectively.
The total unrecognized compensation costs related to stock-based awards that have not yet vested and the related
weighted average amortization period over which the costs are to be recognized as of December 31, 2007 are as follows:
Unrecognized
Compensation
Expense on Unvested
Awards
Weighted
Average
Amortization
Period
(in millions)
Stock options......................................................................................................................... $ 4.4 2.5 years
Restricted stock..................................................................................................................... 12.2 2.4 years
Performance vested restricted stock units............................................................................. 1.4 2.0 years
Total ............................................................................................................................ $ 18.0
Stock Repurchase Program
The Company announced a stock repurchase program on June 25, 1998 to increase returns to its shareholders.
Treasury stock activity is recorded at cost in the accompanying consolidated financial statements. During 2007, the
Company repurchased 4.9 million shares of its common stock under the repurchase program at a total cost of $184.0
million. The Company did not repurchase common stock during the year ended December 31, 2006 under its share
repurchase program. Through December 31, 2007, the Company repurchased 38.6 million shares of its common stock
(including 33.0 million prior to the two-for-one stock split effected in October 2005) under the share repurchase program
at a total cost of $895.9 million.
During 2007 the Company purchased 49,054 shares of common stock at a total cost of $2.0 million from employees
to satisfy statutory minimum tax-withholding requirements from the vesting of restricted stock grants. During 2006 the
Company purchased 28,793 shares of common stock from employees at a total cost of $1.4 million to satisfy minimum
tax-withholding requirements. These purchases were outside the share repurchase program initiated in June 1998.
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