Papa Johns 2015 Annual Report Download - page 92

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79
17. Litigation, Commitments and Contingencies (continued)
Future gross lease costs, future expected sublease payments and net lease costs as of December 27, 2015,
are as follows (in thousands):
Future
Expected
Gross Lease Sublease Net Lease
Year Costs Payments Costs
2016 41,710$ 6,457$ 35,253$
2017 37,672 6,169 31,503
2018 32,153 6,044 26,109
2019 25,079 5,852 19,227
2020 17,134 5,524 11,610
Thereafter 54,532 33,450 21,082
Total 208,280$ 63,496$ 144,784$
The Company’s headquarters facility is leased under a capital lease arrangement with the City of
Jeffersontown, Kentucky in connection with the issuance of $80.2 million in Industrial Revenue Bonds.
The bonds are held 100% by the Company and, accordingly, the bond obligation and investment and
related interest income and expense are eliminated in the consolidated financial statements resulting in the
Company’s net investment cost being reported in net property and equipment.
18. Equity Compensation
We award stock options, time-based restricted stock and performance-based restricted stock units from
time to time under the Papa John’s International, Inc. 2011 Omnibus Incentive Plan.
There are approximately 7.0 million shares of common stock authorized for issuance and remaining
available under the 2011 Omnibus Incentive Plan as of December 27, 2015. 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 27, 2015 generally expire five or ten years from the date of grant and vest
over a three-year period.
We recorded stock-based employee compensation expense of $9.4 million in 2015, $8.7 million in 2014
and $7.4 million in 2013. The total income tax benefit recognized in the consolidated income statement
for share-based compensation arrangements was $3.5 million in 2015, $3.2 million in 2014 and $2.7
million in 2013. At December 27, 2015, there was $7.8 million of unrecognized compensation cost
related to nonvested option awards, time-based restricted stock and performance-based restricted stock
units, of which the Company expects to recognize $5.3 million in 2016, $2.1 million in 2017 and
$330,000 in 2018.
Stock Options
Options exercised, which were issued from authorized shares, included 441,000 shares in 2015, 759,000
shares in 2014 and 697,000 shares in 2013. The total intrinsic value of the options exercised during 2015,
2014 and 2013 was $20.3 million, $25.3 million and $13.1 million, respectively. Cash received upon the
exercise of stock options was $5.2 million, $5.8 million and $6.9 million during 2015, 2014 and 2013,
respectively, and the related tax benefits realized were approximately $7.5 million, $9.4 million and $4.8
million during the corresponding periods.