Popeye's 2013 Annual Report Download - page 79

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Popeyes Louisiana Kitchen, Inc.
Notes to Consolidated Financial Statements
For Fiscal Years 2013, 2012, and 2011 — (Continued)
63
The weighted average grant date fair value of awards granted during 2013,2012, and 2011 was $15.11, $7.74, and
$8.51, respectively. The total intrinsic value of stock options exercised during 2013,2012, and 2011 was $7.6 million,
$1.1 million and $0.3 million, respectively
During 2013,2012, and 2011, the fair value of option awards were estimated on the date of grant using a Black-
Scholes option-pricing model. The fair value of stock-based compensation is amortized on the graded vesting attribution
method. The following weighted average assumptions were used for the grants:
2013 2012 2011
Risk-free interest rate 0.7% 1.0% 2.9%
Expected dividend yield —% —% —%
Expected term (in years) 4.5 4.5 6
Expected volatility 53.0% 55.3% 56.8%
The risk-free interest rate is based on the United States treasury yields in effect at the time of grant. The expected
term of options represents the period of time that options granted are expected to be outstanding based on the vesting
period, the term of the option agreement and historical exercise patterns. The estimated volatility is based on the
historical volatility of the Company’sstock price and other factors.
The following table summarizes the non-vested stock option activity for the 52 week period ended December 29,
2013:
(shares in thousands) Shares
Weighted
Average
Grant Date
Fair
Value
Unvested stock options outstanding at beginning of period 236 $7.15
Granted 66 15.11
Vested (114)6.89
Expired (15)3.18
Unvested stock options outstanding at end of period 173 $10.68
Restricted Share Awards
The Company grants restricted share awards pursuant to the 2006 Incentive Stock Plan. These awards are amortized
as expense on a graded vesting basis. The Company recognized approximately $3.9 million,$3.4 million, and $1.6
million,in stock-based compensation expense associated with these awards during 2013,2012, and 2011, respectively.
During the vesting period, recipients of the shares are entitled to dividends on such shares, provided that such shares
are not forfeited. Dividends are accumulated and paid out at the end of the vesting period.
The following table summarizes the restricted share awards activity for the 52 week period ended December 29,
2013: