Popeye's 2013 Annual Report Download - page 78

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Popeyes Louisiana Kitchen, Inc.
Notes to Consolidated Financial Statements
For Fiscal Years 2013, 2012, and 2011 — (Continued)
62
Consolidated Total Indebtedness to Consolidated EBITDA for the four immediately preceding fiscal quarters. The Total
Leverage Ratio at December 29, 2013 is 0.97 to 1.0.
Dividends. During 2013, 2012 and 2011, the Company paid no dividends.
Note 13 — Stock Option Plans
The 2002 Incentive Stock Plan. In February 2002, the Company created the 2002 Incentive Stock Plan. This plan
authorized the issuance of 4.5 million shares of the Company’scommon stock. All grants have been at prices which
approximate the fair market value of the Company’scommon stock at the date of grant. The options currently granted
and outstanding as of December 29, 2013 allow certain employees and directors of the Company to purchase
approximately 1,000 shares of common stock. If not exercised, the options expire in 2015. As of May 25, 2006, the
Company no longer grants options under this plan.
The 2006 Incentive Stock Plan. In May 2006, the Company created the 2006 Incentive Stock Plan. The plan
authorizes the issuance of approximately 3.3 million shares of the Company’scommon stock. Options and other awards
such as restricted stock, stock appreciation rights, stock grants, and stock unit grants under the plan generally may be
granted to any of the Company’s employees and non-employee directors. The options currently granted and outstanding
as of December 29, 2013 allow certain employees and directors of the Company to purchase approximately 565,000
shares of common stock. The options vest over three years on a graded basis. If not exercised, the options under these
grants expire seven years from the date of issuance.
ASummary of Stock Option Plan Activity.The table below summarizes the activity within the Company’sstock
option plans for the 52 week period ended December 29, 2013.
(shares in thousands) Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term
(years)
Aggregate
Intrinsic
Value
(millions)
Stock options:
Outstanding at beginning of year 808 $12.16
Granted options 66 34.80
Exercised options (290)12.51
Canceled and expired options (18)12.75
Outstanding at end of year 566 $14.58 3.5 $13.2
Exercisable at end of year 399 $10.89 2.7 $10.8
Shares available for future grants under the plans at end of year 1,201
The aggregate intrinsic value in the above table represents the total pre-tax intrinsic value (the difference between
the Company’sclosing stock price on the last trading date of 2013 and the exercise price, multiplied by the number of
options). The amount of aggregate intrinsic value will change based on the fair market value of the Company’scommon
stock.
The Company recognized approximately $0.9 million in stock-based compensation expense associated with its stock
option grants during 2013, 2012, and 2011, respectively. As of December 29, 2013,there was approximately $0.7
million of total unrecognized compensation costs related to unvested stock options which are expected to be recognized
over a weighted average period of approximately 1.4 years. The total fair value at grant date of awards which vested
during 2013,2012, and 2011 was $0.8 million,$1.4 million, and $0.9 million, respectively.