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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In millions)
Equity classified awards expense | $ | 2.9 |  |  | $ | 3.8 |  |  | $ | 8.2 |  |  | $ | 12.2 |
Liability classified awards (credit) expense | 0.2 |  |  | 0.3 |  |  | (0.4) |  |  | 1.7 |
Total stock-based compensation expense | $ | 3.1 |  |  | $ | 4.1 |  |  | $ | 7.8 |  |  | $ | 13.9 |
As of September 30, 2023, total unrecognized compensation expense of $19.9 million related to restricted stock and restricted stock units and $3.0 million related to stock options are expected to be recognized over a weighted average period of 1.4 years for restricted stock and restricted stock units and 1.4 years for stock options. Fair Value Assumptions The following table summarizes the assumptions used in the Black-Scholes model for stock options granted during the nine months ended September 30, 2023:
Risk-free interest rate | 4.4 | %
Historical volatility | 70.9 | %
Dividend yield | 2.7 | %
Expected years until exercise | 4.5
Fair value of options granted | $37.35
Equity Classified Awards - Stock Options Stock option balances at September 30, 2023, and activity for the nine months ended September 30, 2023 were as follows:
|  | Number of Shares Under Option |  | Weighted Average Exercise Price Per Share |  | Weighted Average Remaining Contractual Term (in Years) |  | Aggregate Intrinsic Value (in Millions)
Outstanding at December 31, 2022 |  | 539,575 |  |  | $ | 75.65 |  |  |  |  |
Granted |  | 72,291 |  |  | 74.94 |  |  |  |  |
Exercised |  | (69,443) |  |  | 54.90 |  |  |  |  |
Expired |  | (55,879) |  |  | 82.17 |  |  |  |  |
Forfeited |  | (20,876) |  |  | 79.11 |  |  |  |  |
Outstanding at September 30, 2023 |  | 465,668 |  |  | 77.69 |  |  | 5.99 |  | $ | — |
Vested and Expected to Vest at September 30, 2023 |  | 449,236 |  |  | 77.84 |  |  | 5.9 |  | $ | — |
Exercisable at September 30, 2023 |  | 325,063 |  |  | $ | 79.62 |  |  | 4.8 |  | $ | — |
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price of the Company’s common stock on the last trading day of the third quarter of 2023 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2023. The aggregate intrinsic value will change based on the fair market value of the Company’s common stock and the number of in-the-money options. Equity Classified Awards - Restricted Stock and Restricted Stock Units Outstanding balances as of September 30, 2023, and activity related to restricted stock and restricted stock units for the nine months ended September 30, 2023 were as follows:
|  | Shares of Restricted Stock |  | Weighted Average Grant Date Fair Value |  | Stock-Settled Restricted Stock Units |  | Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022 |  | 355,900 |  |  | $ | 73.57 |  |  | 123,895 |  |  | $ | 62.11 |
Granted |  | 210,418 |  |  | 73.28 |  |  | 21,654 |  |  | 74.01 |
Released |  | (151,920) |  |  | 74.11 |  |  | (47,857) |  |  | 64.04 |
Forfeited |  | (54,723) |  |  | 73.10 |  |  | (39,294) |  |  | 77.23 |
Outstanding at September 30, 2023 |  | 359,675 |  |  | $ | 73.24 |  |  | 58,398 |  |  | $ | 54.05 |
Liability Classified Awards - Cash-settled Restricted Stock Units The Company has granted cash-settled restricted stock units to certain employees in the past. These instruments were recorded as liabilities at fair value as of the respective period end. There have been no liabilities related to cash-settled restricted stock units since the first quarter of 2022. For the nine months ended September 30, 2022, an expense of $0.2 million was included as stock-based compensation expense related to cash-settled restricted stock units. Liability Classified Awards - Long-Term Incentive Awards The Company has granted cash long-term incentive awards (“LTIP awards”) to certain employees. Annual LTIP awards vest over a three-year period and are determined using multipliers from 0% to 200% of the target award based on the total stockholder return of Dine Brands Global common stock compared to the total stockholder returns of a peer group of companies. The awards are considered stock-based compensation and are classified as liabilities measured at fair value as of the respective period end. For the three months ended September 30, 2023 and 2022, an expense of $0.2 million and $0.2 million, respectively, were included in total stock-based compensation expense related to LTIP awards. For the nine months ended September 30, 2023 and 2022, a credit of $0.4 million and an expense of $1.5 million, respectively, was included in total stock-based compensation expense related to LTIP awards. At September 30, 2023 and December 31, 2022, liabilities of $1.7 million and $2.1 million, respectively, related to LTIP awards was included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets.

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