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Share-Based Compensation | 12 Months Ended
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Dec. 26, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation | Share-Based Compensation Share-Based Compensation Plans We maintain four share-based compensation plans under which stock options and other awards granted to our employees and directors are outstanding. Currently, the Denny’s Corporation 2017 Omnibus Incentive Plan (the “2017 Omnibus Plan”) is used to grant share-based compensation to selected employees, officers and directors of Denny’s and its affiliates. However, we reserve the right to pay discretionary bonuses, or other types of compensation, outside of this plan. At December 26, 2018, there were 3.6 million shares available for grant under the 2017 Omnibus Plan. In addition, we have 0.7 million shares available to be issued outside of the 2017 Omnibus Plan pursuant to the grant or exercise of employment inducement awards of stock options and restricted stock units in accordance with NASDAQ Listing Rule 5635(c)(4). Share-Based Compensation Expense Total share-based compensation expense included as a component of net income was as follows:
| Fiscal Year Ended
| December 26, 2018 |  | December 27, 2017 |  | December 28, 2016
| (In thousands)
Performance share awards | $ | 5,039 |  |  | $ | 7,838 |  |  | $ | 7,236 |
Restricted stock units for board members | 999 |  |  | 703 |  |  | 374 |
Total share-based compensation | $ | 6,038 |  |  | $ | 8,541 |  |  | $ | 7,610 |
The income tax benefits recognized as a component of the provision for income taxes in our Consolidated Statements of Income related to share-based compensation expense were approximately $1.6 million, $3.3 million and $3.0 million during the years ended December 26, 2018, December 27, 2017 and December 28, 2016, respectively. Performance Share Units We primarily grant performance share units containing a market condition based on the total shareholder return of our stock compared with the returns of a group of peer companies and performance share units containing a performance condition based on the Company’s achievement of certain operating metrics. The number of shares that are ultimately issued is dependent upon the level of obtainment of the market and performance conditions. The following table summarizes the performance share units activity during the year ended December 26, 2018:
| Units |  | Weighted Average Grant Date Fair Value
| (In thousands) |  |
Outstanding, beginning of year | 1,737 |  |  | $ | 11.11 |
Granted | 471 |  |  | $ | 16.97 |
Vested | (489 | ) |  | $ | 11.43 |
Forfeited | (31 | ) |  | $ | 11.65 |
Outstanding, end of year | 1,688 |  |  | $ | 12.65 |
Convertible, end of year | 630 |  |  | $ | 9.47 |
During the year ended December 26, 2018, and included in the performance share units activity table above, we granted certain employees approximately 0.2 million performance shares that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies and 0.3 million performance shares that vest based on our Adjusted EPS growth rate, as defined under the terms of the award. As the TSR based performance shares contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value of $18.17 per share. The performance shares based on the Adjusted EPS growth rate have a grant date fair value of $15.93 per share, the market value of our stock on the date of grant. The awards granted to our named executive officers also contain a performance condition based on the attainment of an operating measure for the fiscal year ended December 26, 2018. The performance period for these performance shares is the three year fiscal period beginning December 28, 2017 and ending December 30, 2020. The performance shares will vest and be earned (from 0% to 150% of the target award for each such increment) at the end of the performance period. For 2018, 2017 and 2016, the weighted average grant date fair value of awards granted was $16.97, $12.59 and $9.47, respectively. We made payments of $0.2 million, $3.9 million and $2.5 million in cash during 2018, 2017 and 2016, respectively, related to converted performance share units. The intrinsic value of units converted was $9.8 million, $5.0 million and $3.5 million during 2018, 2017 and 2016, respectively. As of December 26, 2018 and December 27, 2017, we had accrued compensation of $0.4 million and $0.4 million, respectively, included as a component of other current liabilities and $0.2 million and $0.4 million, respectively, included as a component of other noncurrent liabilities in our Consolidated Balance Sheets, which represents future estimated payroll taxes. As of December 26, 2018, we had $8.6 million of unrecognized compensation cost related to unvested performance share unit awards granted, which is expected to be recognized over a weighted average of 1.9 years. Restricted Stock Units During the year ended December 26, 2018, we granted approximately 0.1 million restricted stock units (which are equity classified) with a weighted average grant date fair value of $15.46 per unit to non-employee members of our Board of Directors. The restricted stock units vest after a one year service period. A director may elect to convert these awards into shares of common stock on a specific date in the future (while still serving as a member of our Board of Directors) or upon termination as a member of our Board of Directors. During the year ended December 26, 2018, 0.2 million restricted stock units were converted into shares of common stock. There were 0.8 million and 0.9 million restricted stock units outstanding as of December 26, 2018 and December 27, 2017, respectively. As of December 26, 2018, we had approximately $0.4 million of unrecognized compensation cost related to all unvested restricted stock unit awards outstanding, which is expected to be recognized over a weighted average of 0.4 years. Stock Options Prior to 2012, stock options were granted that vest evenly over three years, have a 10-year contractual life and are issued at the market value at the date of grant. There were no options granted in 2018, 2017 or 2016. The following table summarizes information about stock options outstanding and exercisable at December 26, 2018:
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value
| (In thousands, except per share amounts)
Outstanding, beginning of year | 900 |  |  | $ | 3.04 |  |  |  |  |
Exercised | (398 | ) |  | $ | 3.08 |  |  |  |  |
Outstanding, end of year | 502 |  |  | $ | 3.02 |  |  | 1.50 |  | $ | 6,649 |
Exercisable, end of year | 502 |  |  | $ | 3.02 |  |  | 1.50 |  | $ | 6,649 |
The total intrinsic value of the options exercised was $4.9 million, $2.3 million and $1.4 million during the years ended December 26, 2018, December 27, 2017 and December 28, 2016, respectively.

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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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