Popeye's 2015 Annual Report Download - page 75

Popeyes Louisiana Kitchen, Inc.
Notes to Consolidated Financial Statements
For Fiscal Years 2015, 2014, and 2013 — (Continued)
maintenance costs and insurance premiums. At December 27, 2015, the aggregate gross book value and net book value of owned
properties that were leased to franchisees was approximately $32.9 million and $27.9 million, respectively. During 2015, 2014,
and 2013, rental income from these leases and subleases was approximately $5.5 million, $7.1 million, and $5.4 million,
respectively. Included in the rental income was contingent rental income of $3.2 million, $3.7 million, and $3.0 million during
2015, 2014, and 2013, respectively. At December 27, 2015, future minimum rental income associated with these leases and
subleases, are approximately $2.1 million in 2016, $1.5 million in 2017, $1.1 million in 2018, $0.9 million in 2019, $0.8 million
in 2020, and $3.9 million thereafter.
Note 11 — Deferred Credits and Other Long-Term Liabilities
(in millions) 2015 2014
Deferred franchise revenues $ 5.4 $ 3.7
Deferred rentals 8.1 7.6
Deferred income taxes 19.7 16.0
Other long-term liabilities 5.3 5.1
Total $ 38.5 $ 32.4
Note 12 — Common Stock
Share Repurchase Program. In 2015, the Company's Board of Directors cancelled the existing share repurchase program
and replaced it with a $200 million open-ended share repurchase program. During 2015, 2014 and 2013, we repurchased and
retired 1,084,478 shares, 891,931 shares and 504,295 shares of common stock for approximately $62.0 million, $40.0 million
and $19.9 million, respectively.
As of December 27, 2015, the remaining value of shares that may be repurchased under the program was $193.0 million.
Pursuant to the terms of the Company’s 2013 Revolving Credit Facility, the Company may repurchase its common stock
when the Total Leverage Ratio is less than 3.00 to 1.0. Total Leverage Ratio, as defined in the 2013 Revolving Credit Facility,
is the ratio of the Company’s Consolidated Total Indebtedness to Consolidated EBITDA for the four immediately preceding
fiscal quarters. The Total Leverage Ratio at December 27, 2015 was 1.20 to 1.0.
Dividends. During 2015, 2014 and 2013, the Company paid no dividends.
Note 13 — Incentive Stock Plans
Plan Summary. In May 2015, the Company’s shareholders approved the 2015 Incentive Stock Plan replacing the existing
2006 Incentive Stock Plan. The plan provides for the grant of non-qualified stock options, restricted stock, stock appreciation
rights, performance-based restricted stock and restricted share units. The Company grants stock options at a price equal to the
fair market value of the Company’s stock on the date of grant. Stock options vest ratably over three years and expire seven
years from the date of grant if unexercised. Restricted stock generally vests (the restrictions lapse) at the end of a three-year
period or on a graded basis over a three-year period. Restricted share units granted to the Company’s board of directors vest
ratably over a twelve month period and are convertible into shares of the Company’s common stock on a 1:1 basis at such time
the director no longer serves on the board.
Under the Company’s plan, approximately 2.2 million shares have been authorized to be issued to be granted to employees
and directors. Approximately 2.2 million shares are available for future grants as of December 27, 2015.
Non-Qualified Stock Options
The table below summarizes the Company’s stock option activity for the fiscal year ended December 27, 2015.
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