Texas Roadhouse, Inc. and SubsidiariesNotes to Consolidated Financial Statements(Tabular amounts in thousands, except share and per share data)F-27
Summary Details for Stock Options
No stock options were granted or vested during the fiscal years ended December 25, 2018, December 26, 2017 and
December 27, 2016. The total intrinsic value of options exercised during the years ended December 26, 2017 and
December 27, 2016 was $4.0 million and $6.3 million, respectively.
For the years ended December 26, 2017 and December 27, 2016, cash received before tax withholdings from
options exercised was $1.6 million and $2.7 million, respectively. The excess tax benefit for the year ended
December 26, 2017 was $1.0 million which was recognized within the income tax provision. The excess tax benefit for
the year ended December 27, 2016 was $1.8 million which was recorded in additional paid-in-capital in the consolidated
balance sheets.
(15) Fair Value Measurement
ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), establishes a framework for measuring fair
value and expands disclosures about fair value measurements. ASC 820 establishes a three - level hierarchy, which
requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring
fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the
measurement date.
Level 1 Inputs based on quoted prices in active markets for identical assets.
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the
assets, either directly or indirectly.
Level 3 Inputs that are unobservable for the asset.There were no transfers among levels within the fair value hierarchy during the year ended December 25, 2018.The following table presents the fair values for our financial assets and liabilities measured on a recurring basis:Fair Value Measurements
Level December 25, 2018 December 26, 2017
Deferred compensation plan—assets ............. 1 $ 31,632 $ 28,754
Deferred compensation plan—liabilities...... .... 1 (31,721) (28,829)The Second Amended and Restated Deferred Compensation Plan of Texas Roadhouse Management Corp., as
amended, (the "Deferred Compensation Plan") is a nonqualified deferred compensation plan which allows highly
compensated employees to defer receipt of a portion of their compensation and contribute such amounts to one or more
investment funds held in a rabbi trust. We report the accounts of the rabbi trust in other assets and the corresponding
liability in other liabilities in our consolidated financial statements. These investments are considered trading securities
and are reported at fair value based on quoted market prices. The realized and unrealized holding gains and losses related
to these investments, as well as the offsetting compensation expense, are recorded in general and administrative expense
in the consolidated statements of income and comprehensive income.
At December 25, 2018 and December 26, 2017, the fair values of cash and cash equivalents, accounts receivable
and accounts payable approximated their carrying values based on the short-term nature of these instruments. The fair
value of our amended revolving credit facility at December 26, 2017 approximated its carrying value since it is a
variable rate credit facility (Level 2).
(16) Impairment and Closure Costs
We recorded closure costs of $0.3 million, $0.7 million and $0.2 million for the years ended December 25, 2018,
December 26, 2017 and December 27, 2016, respectively, related to costs associated with the relocation of restaurants.