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Share-based Compensation
 6 Months Ended
Jun. 26, 2012
Share-based Compensation.  
Share-based Compensation

(2)   Share-based Compensation

 

We may grant incentive and non-qualified stock options to purchase shares of common stock, stock bonus awards (restricted stock unit awards (“RSUs”)) and restricted stock awards under the Texas Roadhouse, Inc. 2004 Equity Incentive Plan (the “Plan”).  Beginning in 2008, we changed the method by which we provide share-based compensation to our employees by eliminating stock option grants and, instead, granting RSUs as a form of share-based compensation.  An RSU is the conditional right to receive one share of common stock upon satisfaction of the vesting requirement.

 

The following table summarizes the share-based compensation recorded in the accompanying condensed consolidated statements of income and comprehensive income:

 

 

 

13 Weeks Ended

 

26 Weeks Ended

 

 

 

June 26, 2012

 

June 28, 2011

 

June 26, 2012

 

June 28, 2011

 

 

 

 

 

 

 

 

 

 

 

Labor expense

 

$

1,123

 

$

996

 

$

2,129

 

$

1,934

 

General and administrative expense

 

2,148

 

1,777

 

4,195

 

3,799

 

Total share-based compensation expense

 

$

3,271

 

$

2,773

 

$

6,324

 

$

5,733

 

 

A summary of share-based compensation activity by type of grant as of June 26, 2012 and changes during the period then ended is presented below.

 

Summary Details for Plan Share Options

 

 

 

Shares

 

Weighted-
Average
Exercise Price

 

Weighted-Average
Remaining Contractual
Term (years)

 

Aggregate
Intrinsic
Value

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 27, 2011

 

3,486,642

 

$

12.02

 

 

 

 

 

Granted

 

—

 

—

 

 

 

 

 

Forfeited

 

(104,790

)

11.40

 

 

 

 

 

Exercised

 

(862,145

)

9.69

 

 

 

 

 

Outstanding at June 26, 2012

 

2,519,707

 

$

12.84

 

3.41

 

$

12,966

 

 

 

 

 

 

 

 

 

 

 

Exercisable at June 26, 2012

 

2,512,310

 

$

12.84

 

3.40

 

$

12,921

 

 

The total intrinsic value of options exercised during the 13 weeks ended June 26, 2012 and June 28, 2011 was $3.2 million and $0.7 million, respectively.  The total intrinsic value of options exercised during the 26 weeks ended June 26, 2012 and June 28, 2011 was $6.6 million and $2.1 million, respectively.  As of June 26, 2012, with respect to unvested stock options, there was an immaterial amount of unrecognized compensation cost that is expected to be recognized over a weighted-average period of less than a year.  The total grant date fair value of stock options vested for the 13 week periods ended June 26, 2012 and June 28, 2011 was $0.1 million and $0.2 million, respectively.  The total grant date fair value of stock options vested for the 26 week periods ended June 26, 2012 and June 28, 2011 was $0.1 million and $0.4 million, respectively.

 

Summary Details for RSUs

 

 

 

Shares

 

Weighted-
Average
Grant Date
Fair Value

 

 

 

 

 

 

 

Outstanding at December 27, 2011

 

1,186,480

 

$

13.71

 

Granted

 

1,067,746

 

15.85

 

Forfeited

 

(26,469

)

13.83

 

Vested

 

(412,272

)

12.92

 

Outstanding at June 26, 2012

 

1,815,485

 

$

15.15

 

 

As of June 26, 2012, with respect to unvested RSUs, there was $17.3 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 1.6 years.  The vesting terms of the RSUs range from 1.0 to 5.0 years.  The total grant date fair value of RSUs vested for the 13 week periods ended June 26, 2012 and June 28, 2011 was $1.6 million and $2.0 million, respectively.  For the 26 week periods ended June 26, 2012 and June 28, 2011, the total grant date fair value of RSUs vested was $5.3 million and $5.5 million, respectively.