Papa Johns 2011 Annual Report Download - page 83

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78
16. Share Repurchase Program
The Company’s Board of Directors authorized the repurchase of up to $925.0 million of common stock
through December 31, 2012, of which $71.5 million remained available for repurchase at December 25,
2011. 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 14, 2012), we acquired an additional 60,000 shares at an
aggregate cost of $2.2 million. As of February 14, 2012, approximately $69.3 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.
2011 Omnibus Incentive Plan and other such agreements as may arise. There are approximately 4.8
million shares of common stock authorized for issuance and remaining available under the 2011 Omnibus
Incentive Plan as of December 25, 2011, which includes 2.0 million shares transferred from the Papa
John’s International, Inc. 2008 Omnibus Incentive Plan. Option awards are granted with an exercise price
equal to the market price of the Company’s stock at the date of grant. Options outstanding as of
December 25, 2011 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 $6.7 million in 2011, $6.1 million in 2010
and $5.8 million in 2009. The total income tax benefit recognized in the income statement for share-based
compensation arrangements was $2.2 million in 2011, $2.2 million in 2010 and $2.1 million in 2009. At
December 25, 2011, there was $5.5 million of unrecognized compensation cost related to nonvested
option awards and restricted stock, of which the Company expects to recognize $3.8 million in 2012, $1.5
million in 2013 and $200,000 in 2014.
Stock Options
Options exercised included 572,000 shares in 2011, 356,000 shares in 2010 and 612,000 shares in 2009.
The total intrinsic value of the options exercised during 2011, 2010 and 2009 was $4.6 million, $2.6
million and $4.3 million, respectively. Cash received upon the exercise of stock options was $14.0
million, $6.4 million and $9.8 million during 2011, 2010 and 2009, respectively, and the related tax
benefits realized were approximately $1.7 million, $943,000 and $1.5 million during the corresponding
periods.