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EQUITY-BASED COMPENSATION | 12 Months Ended
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Dec. 26, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION
A summary of equity-based compensation expense recognized during fiscal 2018, 2017 and 2016 is as follows:
|  | 2018 |  |  | 2017 |  |  | 2016 |
Stock options | 3,039 |  |  | 3,474 |  |  | 4,262 |
Performance stock units | 2,449 |  |  | 1,869 |  |  | 1,092 |
Restricted stock units | 655 |  |  | 280 |  |  | — |
Equity-based compensation expense | $ | 6,143 |  |  | $ | 5,623 |  |  | $ | 5,354 |
Total income tax benefit recognized related to equity-based compensation | $ | 172 |  |  | $ | 198 |  |  | $ | 168 |
Equity-based compensation expense is allocated to general and administrative expenses and labor and related expenses on the Consolidated Statements of Income (Loss) during fiscal 2018, 2017 and 2016 as follows:
|  | 2018 |  |  | 2017 |  |  | 2016 |
General and administrative expenses | 5,991 |  |  | 5,463 |  |  | 5,260 |
Labor and related expenses | 152 |  |  | 160 |  |  | 94 |
Equity-based compensation expense | 6,143 |  |  | 5,623 |  |  | 5,354 |
We capitalized $107, $109 and $139 of equity-based compensation expense associated with the construction cost of our Shacks and our enterprise-wide system upgrade initiative, Project Concrete, during fiscal 2018, 2017 and 2016, respectively. Stock Options In January 2015, we adopted the 2015 Incentive Award Plan (the "2015 Plan") under which we may grant up to 5,865,522 stock options and other equity-based awards to employees, directors and officers. The stock options granted generally vest equally over periods ranging from one to five years. We do not use cash to settle any of our equity-based awards, and we issue new shares of Class A common stock upon the exercise of stock options. The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:
| 2018 |  |  | 2017 |  |  | 2016 |
Expected term (years)(1) | 7.5 |  |  | 7.5 |  |  | 5.5 |
Expected volatility(2) | 42.5 | % |  | 44.5 | % |  | 50.7 | %
Risk-free interest rate(3) | 2.8 | % |  | 2.1 | % |  | 1.5 | %
Dividend yield(4) | — | % |  | — | % |  | — | %
(1) | Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2) | Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3) | The risk-free rate rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4) | We have assumed a dividend yield of zero as we have no plans to declare dividends in the foreseeable future.
A summary of stock option activity for fiscal years 2018, 2017 and 2016 is as follows:
|  | Stock Options |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |  |  | Weighted Average Remaining Contractual Life (Years)
Outstanding as of December 30, 2015 | 2,574,981 |  |  | $ | 21.00 |  |  |  |  |
| Granted | 16,931 |  |  | 34.74 |  |  |  |  |
| Exercised | (160,230 | ) |  | 21.00 |  |  |  |  |
| Forfeited | (66,960 | ) |  | (21.00 | ) |  |  |  |
| Expired | — |  |  | — |  |  |  |  |
Outstanding as of December 28, 2016 | 2,364,722 |  |  | $ | 21.10 |  |  |  |  |
| Granted | 5,150 |  |  | 38.91 |  |  |  |  |
| Exercised | (359,011 | ) |  | 21.13 |  |  |  |  |
| Forfeited | (291,520 | ) |  | (21.00 | ) |  |  |  |
| Expired | — |  |  | — |  |  |  |  |
Outstanding as of December 27, 2017 | 1,719,341 |  |  | $ | 21.16 |  |  |  |  |
| Granted | 5,036 |  |  | 39.91 |  |  |  |  |
| Exercised | (260,515 | ) |  | 21.00 |  |  |  |  |
| Forfeited | (102,879 | ) |  | (21.27 | ) |  |  |  |
| Expired | — |  |  | — |  |  |  |  |
Outstanding as of December 26, 2018 | 1,360,983 |  |  | $ | 21.25 |  |  | $ | 29,881 |  |  | 6.1
Options vested and exercisable as of December 26, 2018 | 674,247 |  |  | $ | 21.26 |  |  | $ | 14,798 |  |  | 6.1
Options expected to vest as of December 26, 2018 | 686,736 |  |  | $ | 21.25 |  |  | $ | 15,083 |  |  | 6.1
As of December 26, 2018, total unrecognized compensation expense related to unvested stock options was $3,335, which is expected to be recognized over a weighted-average period of 1.2 years. The total intrinsic value of stock options exercised during fiscal 2018, 2017 and 2016 was $5,786, $8,333 and $2,536, respectively. C ash received from stock option exercises was $5,472 for fiscal 2018. A summary of unvested stock option activity for fiscal years 2018, 2017 and 2016 is as follows:
|  | Stock Options |  |  | Weighted Average Grant-Date Fair Value |
Unvested as of December 30, 2015 | 2,574,981 |  |  | $ | 8.53 |
| Vested | (562,296 | ) |  | 8.32 |
| Granted | 16,931 |  |  | 16.32 |
| Forfeited | (65,365 | ) |  | 8.59 |
Unvested as of December 28, 2016 | 1,964,251 |  |  | $ | 8.66 |
| Vested | (503,686 | ) |  | 8.85 |
| Granted | 5,150 |  |  | 19.42 |
| Forfeited | (289,620 | ) |  | 8.59 |
Unvested as of December 27, 2017 | 1,176,095 |  |  | $ | 8.64 |
| Vested | (404,120 | ) |  | 8.62 |
| Granted | 5,036 |  |  | 19.86 |
| Forfeited | (90,275 | ) |  | 8.59 |
Unvested as of December 26, 2018 | 686,736 |  |  | $ | 8.74 |
The total fair value of stock options vested during fiscal 2018, 2017 and 2016 was $3,483, $4,458 and $4,678, respectively. The following table summarizes information about stock options outstanding and exercisable as December 26, 2018:
|  | Options Outstanding |  |  | Options Exercisable |
|  | Number Outstanding at December 26, 2018 |  |  | Weighted Average Remaining Contractual Life (Years) |  | Weighted Average Exercise Price |  |  | Number Exercisable at December 26, 2018 |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price |
Exercise Price |  |  |  |  |  |
$21.00 |  | 1,339,274 |  |  | 6.1 |  | $ | 21.00 |  |  | 661,694 |  |  | 6.1 |  |  | $ | 21.00 |
$34.62 |  | 10,415 |  |  | 7.4 |  | $ | 34.62 |  |  | 10,415 |  |  | 7.4 |  |  | $ | 34.62 |
$36.41 |  | 1,108 |  |  | 7.9 |  | $ | 36.41 |  |  | 1,108 |  |  | 7.9 |  |  | $ | 36.41 |
$38.91 |  | 5,150 |  |  | 8.5 |  | $ | 38.91 |  |  | 1,030 |  |  | 8.5 |  |  | $ | 38.91 |
$39.91 |  | 5,036 |  |  | 9.2 |  | $ | 39.91 |  |  | — |  |  | — |  |  | $ | — |
Performance Stock Units Under the 2015 Plan, we may grant performance stock units and other types of performance-based equity awards that vest based on the outcome of certain performance criteria that are established and approved by the Compensation Committee of the Board of Directors. The actual number of equity awards earned is based on the level of performance achieved over a predetermined performance period, relative to established financial goals, none of which are considered market conditions. For performance stock units granted during fiscal 2018, the amount of awards that can be earned ranges from 0% to 125% of the number of performance stock units granted, based on the achievement of approved financial goals over a one-year performance period. In addition to the performance conditions, performance stock units are also subject to a requisite service period and the awards vest ratably over three years. The fair value of performance stock units is determined based on the closing market price of our Class A common stock on the date of grant. Compensation expense related to the performance stock units is recognized using a graded-vesting attribution method over the vesting period based on the most probable outcome of the performance conditions. A summary of performance stock unit activity for fiscal years 2018, 2017 and 2016 is as follows:
|  | Performance Stock Units |  |  | Weighted Average Grant Date Fair Value |
Outstanding as of December 30, 2015 | — |  |  | $ | — |
| Granted | 63,600 |  |  | 38.41 |
| Performance achievement(1) | — |  |  | — |
| Vested | — |  |  | — |
| Forfeited | (2,000 | ) |  | 38.43 |
| Expired | — |  |  | — |
Outstanding as of December 28, 2016 | 61,600 |  |  | $ | 38.41 |
| Granted | 87,596 |  |  | 37.90 |
| Performance achievement(1) | 9,545 |  |  | 38.40 |
| Vested | (22,703 | ) |  | 38.40 |
| Forfeited | (11,196 | ) |  | 38.28 |
| Expired | — |  |  | — |
Outstanding as of December 27, 2017 | 124,842 |  |  | $ | 38.06 |
| Granted | 60,437 |  |  | 58.46 |
| Performance achievement(1) | (12,139 | ) |  | 37.89 |
| Vested | (43,861 | ) |  | 38.13 |
| Forfeited | (10,737 | ) |  | 41.28 |
| Expired | — |  |  | — |
Outstanding as of December 26, 2018 | 118,542 |  |  | $ | 48.16 |
(1) | Represents the incremental awards earned and/or awards forfeited based on the achievement of performance conditions.
As of December 26, 2018, there were 118,542 performance stock units outstanding, of which none were vested. As of December 26, 2018, total unrecognized compensation expense related to unvested performance stock units was $2,954, which is expected to be recognized over a weighted-average period of 2.2 years. Restricted Stock Units Under the 2015 Plan, we may grant restricted stock units to employees, directors and officers. The restricted stock units granted generally vest equally over periods ranging from one to five years. T he fair value of restricted stock units is determined based on the closing market price of our Class A common stock on the date of grant. Compensation expense related to the restricted stock units is recognized using a straight-line attribution method over the vesting period. A summary of restricted stock unit activity for fiscal years 2018 and 2017 is as follows:
|  | Restricted Stock Units |  |  | Weighted Average Grant Date Fair Value |
Outstanding as of December 28, 2016 | — |  |  | $ | — |
| Granted | 44,476 |  |  | 38.98 |
| Vested | — |  |  | — |
| Forfeited | — |  |  | — |
| Expired | — |  |  | — |
Outstanding as of December 27, 2017 | 44,476 |  |  | $ | 38.98 |
| Granted | 18,882 |  |  | 49.12 |
| Vested | (13,635 | ) |  | 39.13 |
| Forfeited | — |  |  | — |
| Expired | — |  |  | — |
Outstanding as of December 26, 2018 | 49,723 |  |  | $ | 42.79 |
As of December 26, 2018, there were 49,723 restricted stock units outstanding, of which none were vested. No restricted stock units were granted in fiscal 2016. As of December 26, 2018, total unrecognized compensation expense related to unvested restricted stock units was $1,726, which is expected to be recognized over a weighted-average period of 3.5 years.

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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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