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Share-based Compensation | 12 Months Ended
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Dec. 25, 2018
Share-based Compensation |
Share-based Compensation | (14) Share‑based Compensation On May 16, 2013, our 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 ("PSUs"). This plan replaced the Texas Roadhouse, Inc. 2004 Equity Incentive Plan. The following table summarizes the share‑based compensation recorded in the accompanying consolidated statements of income and comprehensive income:
|  | Fiscal Year Ended |
|  | December 25, |  | December 26, |  | December 27, |
|  | 2018 |  | 2017 |  | 2016 |
Labor expense |  | $ | 8,463 |  | $ | 7,171 |  | $ | 6,124 |
General and administrative expense |  |  | 25,520 |  |  | 19,763 |  |  | 19,943 |
Total share-based compensation expense |  | $ | 33,983 |  | $ | 26,934 |  | $ | 26,067 |
Effective December 28, 2016, we adopted ASU 2016-09 which amends and simplifies the accounting for stock compensation. As a result of the adoption of ASU 2016-09, we made a change in our accounting for forfeitures to record as they occur and, as a result, we recorded a $0.1 million cumulative-effect reduction to retained earnings in the year of adoption under the modified retrospective approach. We elected prospective transition for the requirement to classify excess tax benefits as an operating activity in the consolidated statement of cash flows. No prior periods have been adjusted As a result of this adoption, all excess tax benefits and tax deficiencies for restricted shares that vested or options exercised have been recognized within the income tax provision in the consolidated statements of income and comprehensive income for the years ended December 25, 2018 and December 26, 2017. See note 9 for further discussion. Beginning in 2008, we changed the method by which we provide share-based compensation to our employees by granting RSUs as a form of share-based compensation. Prior to 2008, we issued stock options as share-based compensation to our employees. Beginning in 2015, we began granting PSUs to certain of our executives. An RSU is the conditional right to receive one share of common stock upon satisfaction of the vesting requirement. A PSU is the conditional right to receive one share of common stock upon meeting a performance obligation along with the satisfaction of the vesting requirement. In 2017, all remaining unexercised stock options expired leaving only RSUs and PSUs outstanding. Share‑based compensation activity by type of grant as of December 25, 2018 and changes during the period then ended are presented below. Summary Details for RSUs
|  |  |  | Weighted-Average |  | Weighted-Average |  |  |  |
|  |  |  | Grant Date Fair |  | Remaining Contractual |  | Aggregate |
|  | Shares |  | Value |  | Term (years) |  | Intrinsic Value |
Outstanding at December 26, 2017 |  | 949,991 |  | $ | 43.62 |  |  |  |  |  |
Granted |  | 439,259 |  |  | 60.79 |  |  |  |  |  |
Forfeited |  | (35,077) |  |  | 47.66 |  |  |  |  |  |
Vested |  | (529,228) |  |  | 42.20 |  |  |  |  |  |
Outstanding at December 25, 2018 |  | 824,945 |  | $ | 53.51 |  | 1.3 |  | $ | 46,870 |
As of December 25, 2018, with respect to unvested RSUs, there was $22.0 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 years ended December 25, 2018, December 26, 2017 and December 27, 2016 was $32.1 million, $23.4 million and $21.5 million, respectively. The excess tax benefit associated with vested RSUs for the years ended December 25, 2018 and December 26, 2017 was $1.9 million and $1.6 million, respectively, which was recognized in the income tax provision. The excess tax benefit associated with vested RSUs for the year ended December 27, 2016 was $1.5 million which was recorded in additional paid-in-capital in the consolidated balance sheets. Summary Details for PSUs
|  |  |  | Weighted-Average |  | Weighted-Average |  |  |
|  |  |  | Grant Date Fair |  | Remaining Contractual |  | Aggregate
|  | Shares |  | Value |  | Term (years) |  | Intrinsic Value
Outstanding at December 26, 2017 |  | 205,000 |  | $ | 46.16 |  |  |  |  |
Granted |  | — |  |  | — |  |  |  |  |
Incremental Performance Shares (1) |  | 40,576 |  |  | 39.88 |  |  |  |  |
Forfeited |  | — |  |  | — |  |  |  |  |
Vested |  | (155,576) |  |  | 39.88 |  |  |  |  |
Outstanding at December 25, 2018 |  | 90,000 |  | $ | 54.18 |  | 0.1 |  | $ | 5,113
| (1) |  | Additional shares from the November 2016 PSU grant that vested in January 2018 due to exceeding the initial 100% target.
Beginning in 2015, we granted PSUs to certain of our executives subject to a one-year vesting and the achievement of certain earnings targets, which determine the number of units to vest at the end of the vesting period. Share-based compensation is recognized for the number of units expected to vest at the end of the period and is expensed beginning on the grant date and through the performance period. For each grant, PSUs vest after meeting the performance and service conditions. The total intrinsic value of PSUs vested during the years ended December 25, 2018, December 26, 2017 and December 27, 2016 was $8.9 million, $8.6 million and $5.0 million, respectively. On January 8, 2019, 142,169 shares vested related to the December 2017 PSU grant and are expected to be distributed during the 13 weeks ending March 26, 2019. This included 90,000 granted shares and 52,169 incremental shares due to the grant exceeding the initial 100% target. As of December 25, 2018, with respect to unvested PSUs, there was $0.3 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.1 year. The excess tax benefit associated with vested PSUs for the years ended December 25, 2018 and December 26, 2017 was $0.7 million and $0.8 million, respectively, which was recognized within the income tax provision. Summary Details for Stock Options No stock options were granted or vested during the fiscal years ended December 25, 2018, December 26, 2017 and December 27, 2016. The total intrinsic value of options exercised during the years ended December 26, 2017 and December 27, 2016 was $4.0 million and $6.3 million, respectively. For the years ended December 26, 2017 and December 27, 2016, cash received before tax withholdings from options exercised was $1.6 million and $2.7 million, respectively. The excess tax benefit for the year ended December 26, 2017 was $1.0 million which was recognized within the income tax provision. The excess tax benefit for the year ended December 27, 2016 was $1.8 million which was recorded in additional paid-in-capital in the consolidated balance sheets.

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- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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