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Share-based Compensation
 6 Months Ended
Jun. 25, 2013
Share-based Compensation  
Share-based Compensation

(2)     Share-based Compensation

 

On May 16, 2013, the Company’s stockholders approved the Texas Roadhouse, Inc. 2013 Long-Term Incentive Plan (the “Plan”).  The Plan provides for the granting of incentive and non-qualified stock options to purchase shares of common stock, stock appreciation rights, and full value awards, including restricted stock, restricted stock units (“RSUs”), deferred stock units, performance stock and performance stock units.  As a result of the approval of the Plan, no future awards will be made under the Texas Roadhouse, Inc. 2004 Equity Incentive 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 unaudited condensed consolidated statements of income and comprehensive income:

 

 

 

13 Weeks Ended

 

26 Weeks Ended

 

 

 

June 25, 2013

 

June 26, 2012

 

June 25, 2013

 

June 26, 2012

 

 

 

 

 

 

 

 

 

 

 

Labor expense

 

$

1,341

 

$

1,123

 

$

2,671

 

$

2,129

 

General and administrative expense

 

2,118

 

2,148

 

4,300

 

4,195

 

Total share-based compensation expense

 

$

3,459

 

$

3,271

 

$

6,971

 

$

6,324

 

 

Share-based compensation activity by type of grant as of June 25, 2013 and changes during the 26 weeks then ended are presented below.

 

Summary Details for 2004 Equity Incentive Plan Share Options

 

 

 

Shares

 

Weighted-
Average
Exercise Price

 

Weighted-Average
Remaining Contractual
Term (years)

 

Aggregate
Intrinsic
Value

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 25, 2012

 

2,258,921

 

$

13.24

 

 

 

 

 

Granted

 

—

 

—

 

 

 

 

 

Forfeited

 

(10,869

)

13.34

 

 

 

 

 

Exercised

 

(810,690

)

13.01

 

 

 

 

 

Outstanding at June 25, 2013

 

1,437,362

 

$

13.37

 

2.56

 

$

15,983

 

 

 

 

 

 

 

 

 

 

 

Exercisable at June 25, 2013

 

1,437,362

 

$

13.37

 

2.56

 

$

15,983

 

 

The total intrinsic value of options exercised during the 13 weeks ended June 25, 2013 and June 26, 2012 was $2.9 million and $3.2 million, respectively.  During the 26 weeks ended June 25, 2013 and June 26, 2012, the total intrinsic value of options exercised was $6.2 million and $6.6 million, respectively.  No stock options vested during the 13 or 26 week periods ended June 25, 2013.  The total grant date fair value of stock options vested for the 13 and 26 week periods ended June 26, 2012 was $0.1 million.

 

Summary Details for RSUs

 

 

 

Shares

 

Weighted-
Average
Grant Date
Fair Value

 

Weighted-Average
Remaining Contractual
Term (years)

 

Aggregate
Intrinsic
Value

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 25, 2012

 

1,803,514

 

$

15.73

 

 

 

 

 

Granted

 

272,660

 

21.13

 

 

 

 

 

Forfeited

 

(13,060

)

16.80

 

 

 

 

 

Vested

 

(685,301

)

15.88

 

 

 

 

 

Outstanding at June 25, 2013

 

1,377,813

 

$

16.71

 

8.72

 

$

33,743

 

 

As of June 25, 2013, with respect to unvested RSUs, there was $13.7 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 1.3 years.  The vesting terms of the RSUs range from 1.0 to 5.0 years.  The total intrinsic value of RSUs vested for the 13 weeks ended June 25, 2013 and June 26, 2012 was $3.3 million and $2.0 million, respectively.   For the 26 weeks ended June 25, 2013 and June 26, 2012, the total intrinsic value of RSUs vested was $13.2 million and $6.8 million, respectively.