Wendy's 2009 Annual Report Download - page 118

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Stock Options
Prior to the date of the Conversion, our outstanding stock options were exercisable for either (1) a package
(the “Package Options”) of one share of Class A Common Stock and two shares of Class B Common Stock, (2)
one share of Class A Common Stock (the “Class A Options”) or (3) one share of Class B Common Stock (the
“Class B Options”). As of the date of the Wendy’s Merger, we converted to a single class of common stock. As
such, all stock options outstanding subsequent to the date of the Wendy’s Merger (including those under the
Wendy’s Plans) are now exercisable for one share of Common Stock (three shares of Common Stock for Package
Options). Summary information regarding Wendy’s/Arby’s outstanding stock options, including changes
therein, is as follows:
Options
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value Options
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value Options
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Package Options Common Stock Options Class B Options
Outstanding at December 31, 2006 . . . . . . . . . . . . . . . 268 $23.89 202 $17.06 3,955 $13.76
Granted during 2007............................. — 32 $16.40 1,026 $15.82
Exercised during 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . (43) 23.11 $1,269 — $ — (432) $12.38 $2,697
Forfeited during 2007............................ — (33) $21.45 (222) $16.68
Outstanding at December 30, 2007 . . . . . . . . . . . . . . . 225 $24.04 $ 657 201 $16.22 $ — 4,327 $14.24 $1,692
Conversion of Class B options to Common Stock
options ....................................... 4,902 $12.99 (4,902) $12.99
Options assumed with the Wendy’s Merger . . . . . . . . — 16,341 $ 6.68 —
Granted during 2008............................. — 5,549 $ 5.08 741 $ 6.60
Exercised during 2008 ........................... — (5) $ 3.35 $ 4 — $—
Forfeited during 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15) $25.26 (895) $ 6.63 (166) $13.43
Outstanding at December 28, 2008 . . . . . . . . . . . . . . . 210 $23.54 $ — 26,093 $ 7.60 $ 2,557 —
Granted during 2009............................. — 2,346 $ 4.46
Cancelled options reinstated. . . . . . . . . . . . . . . . . . . . . . . — 374 $ 3.87
Exercised during 2009 ........................... — $ — (524) $ 3.75 $ 784
Forfeited during 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15) $19.82 (5,409) $ 8.27
Outstanding at January 3, 2010 . . . . . . . . . . . . . . . . . . . 195 $23.82 $ — 22,880 $ 7.15 $ 2,504
Vested or expected to vest at January 3, 2010 (a) . . . 195 $23.82 $ — 21,914 $ 7.21 $10,894
Exercisable:
December 30, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . 225 $24.04 153 $16.11 2,457 $12.90
December 28, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . 210 $23.54 12,451 $ 8.60 ——
January 3, 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 $23.82 $ — 12,145 $ 8.29 $ 1,861 N/A N/A N/A
(a) The weighted average remaining contractual terms for the Package Options and Common Stock Options
that are vested or are expected to vest at January 3, 2010 are 2.1 years and 7.7 years, respectively.
The weighted average fair value per share as of the grant date as calculated under the Black-Scholes Model
of the Company’s stock options granted during 2009, 2008 and 2007 (which were all granted at exercise prices
equal to the market price of the Company’s Common Stock or Class B Common Stock on the grant date) were
as follows:
Common
Stock Options
Class B
Options
2009 ............................................................. $1.83 N/A
2008 ............................................................. $2.12 $2.20
2007 ............................................................. $4.57 $4.52
111
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)