Papa Johns 2009 Annual Report Download - page 99

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92
18. Equity Compensation (continued)
The weighted average grant-date fair value of options granted during 2009, 2008 and 2007 was $7.26,
$7.07 and $8.98, respectively. The Company granted 997,000, 618,000 and 582,000 options in 2009,
2008 and 2007, respectively.
Restricted Stock
In 2009 we granted shares of restricted stock that were 100% time-based. In 2008, we granted shares of
restricted stock that were approximately 60% performance-based and 40% time-based. In 2007, we
granted stock that was 100% performance-based. These restricted shares are intended to focus
participants on our long-range objectives, while at the same time serving as a retention mechanism. The
shares awarded in 2009 have a three-year graded vesting period, while the shares awarded in 2008 and
2007 have a three-year cliff vesting period. The performance-based shares vest based upon the
Company’s achievement of compounded annual growth rate (CAGR) of consolidated corporate operating
income, as defined. The fair value of the restricted stock is based on the market price of the Company’s
shares on the grant date.
Information pertaining to restricted stock activity during 2009, 2008 and 2007 is as follows (shares in
thousands):
Weighted
Average
Grant-Date
Shares Fair Value
Total as of December 31, 2006 27 32.65$
Granted 133 33.50
Forfeited (15) 33.56
Vested - -
Total as of December 30, 2007 145 33.33$
Granted 146 26.28
Forfeited (8) 31.13
Vested - -
Total as of December 28, 2008 283 29.84$
Granted 108 26.54
Forfeited (121) 30.03
Vested - -
Total as of December 27, 2009
270
28.34
$
19. Employee Benefit Plans
We have established the Papa John’s International, Inc. 401(k) Plan (the “401(k) Plan”), as a defined
contribution benefit plan, in accordance with Section 401(k) of the Internal Revenue Code. The 401(k)
Plan is open to all employees who meet certain eligibility requirements and allows participating
employees to defer receipt of a portion of their compensation and contribute such amount to one or more
investment funds. At our discretion, we contributed a matching payment of 2.1% in 2009, 2008 and 2007
of a participating employee’s earnings, which is subject to vesting based on an employee’s length of
service with us. Costs of the 401(k) Plan recognized in 2009, 2008 and 2007 were $800,000, $1.1 million
and $900,000, respectively.