Share-based Compensation

3 Months Ended

Apr. 01, 2014

(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
	April 1, 2014		March 26, 2013

Labor expense	$	1,368	$	1,330
General and administrative expense	2,253		2,182
Total share-based compensation expense	$	3,621	$	3,512

Share-based compensation activity by type of grant as of April 1, 2014 and changes during the 13 weeks then ended are presented below.

Summary Details for Share Options

	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value

Outstanding at December 31, 2013	1,043,438		$	13.77
Granted	—		—
Forfeited	—		—
Exercised	(108,160	)	11.67
Outstanding at April 1, 2014	935,278		$	14.02	2.14	$	11,845

Exercisable at April 1, 2014	935,278		$	14.02	2.14	$	11,845

The total intrinsic value of options exercised during the 13 weeks ended April 1, 2014 and March 26, 2013 was $1.5 million and $3.3 million, respectively. No stock options vested during the 13 week periods ended April 1, 2014 and March 26, 2013.

Summary Details for RSUs

	Shares		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value

Outstanding at December 31, 2013	1,283,862		$	18.68
Granted	137,743		26.29
Forfeited	(28,418	)	17.04
Vested	(429,792	)	16.16
Outstanding at April 1, 2014	963,395		$	20.94	8.67	$	25,703

As of April 1, 2014, with respect to unvested RSUs, there was $11.5 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 approximately 1.0 to 5.0 years. The total intrinsic value of RSUs vested during the 13 weeks ended April 1, 2014 and March 26, 2013 was $11.5 million and $9.9 million, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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