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Share Based Compensation

6 Months Ended

Jun. 29, 2021

(10) Share Based Compensation

On May 13, 2021, our stockholders approved the Texas Roadhouse, Inc. 2021 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. This Plan replaced the 2013 Long-Term Incentive Plan and no subsequent awards will be granted under the 2013 Plan.

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 certain 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 (loss) and comprehensive income (loss):



	13 Weeks Ended				26 Weeks Ended
	June 29, 2021		June 30, 2020		June 29, 2021		June 30, 2020
Labor expense	$	2,495	$	2,532	$	5,079	$	4,920
General and administrative expense		7,414		4,711		14,738		9,570
Total share-based compensation expense	$	9,909	$	7,243	$	19,817	$	14,490

We grant PSUs to certain executives which are generally 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 weeks ended June 29, 2021 and June 30, 2020. The total intrinsic value of PSUs vested during the 26 weeks ended June 29, 2021 and June 30, 2020 was $0.4 million and $5.4 million, respectively.

On January 8, 2021, 5,199 shares vested related to the January 2020 PSU grant and were distributed during the 13 weeks ended March 30, 2021. With respect to unvested PSUs, we recognized expense of $1.8 million and $4.1 million during the 13 and 26 weeks ended June 29, 2021, respectively. As of June 29, 2021, with respect to unvested PSUs, there was $3.8 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.5 years.