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Share-based Compensation

9 Months Ended

Sep. 29, 2020

(10) 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 various forms of equity awards including options, stock appreciation rights, full value awards, and performance based awards. The Company provides restricted stock units ("RSUs") to employees 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. In addition to RSUs, the Company provides performance stock units ("PSUs") to executives as a form of share-based compensation. 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. The following table summarizes the share-based compensation recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income:



	13 Weeks Ended				39 Weeks Ended
	September 29, 2020		September 24, 2019		September 29, 2020		September 24, 2019
Labor expense	$	2,480	$	2,164	$	7,400	$	6,513
General and administrative expense		5,100		5,979		14,670		18,503
Total share-based compensation expense	$	7,580	$	8,143	$	22,070	$	25,016

We grant PSUs to all 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 expense 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. There were no PSUs that vested during the 13 week periods ended September 29, 2020 and September 24, 2019. The total intrinsic value of PSUs vested during the 39 week periods ended September 29, 2020 and September 24, 2019 was $5.4 million and $8.8 million, respectively.

On January 8, 2020, 95,946 shares vested related to the January 2019 PSU grant and were distributed during the 13 weeks ending March 31, 2020. This included 77,000 granted shares and 18,946 incremental shares due to the grant exceeding the initial 100% target. With respect to unvested PSUs, we recognized expense of $0.4 million during the 13 and 39 weeks ended September 29, 2020. At September 29, 2020, with respect to unvested PSUs, there was $0.1 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.3 years.