Texas Roadhouse, Inc. and SubsidiariesNotes to Consolidated Financial Statements(Tabular amounts in thousands, except share and per share data)F-25
are covered by insurance, has had a material effect on us and, as of the date of this report, we are not party to any
litigation that we believe could have a material adverse effect on our business.
(14) Share-based Compensation
On May 16, 2013, our stockholders approved the Texas Roadhouse, Inc. 2013 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 Texas Roadhouse, Inc. 2004 Equity
Incentive 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 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 consolidated statements of income and comprehensive income:
Fiscal Year Ended
December 31, December 25, December 26,
2019 2018 2017
Labor expense .................................. $ 9,032 $ 8,463 $ 7,171
General and administrative expense ................ 26,468 25,520 19,763
Total share-based compensation expense ............ $ 35,500 $ 33,983 $ 26,934Share-based compensation activity by type of grant as of December 31, 2019 and changes during the period then
ended are presented below. For both RSUs and PSUs, we do not estimate forfeitures as we record them as they occur.
Summary Details for RSUs
Weighted-Average Weighted-Average
Grant Date Fair Remaining Contractual Aggregate
Shares Value Term (years) Intrinsic Value
Outstanding at December 25, 2018 .............. 824,945 $ 53.51
Granted ..................................... 561, 191 57.84
Forfeited .................................... (74,483) 56.75
Vested ...................................... (475,226) 55.13
Outstanding at December 31, 2019 .............. 836,427 $ 55.20 1.1 $ 47,110
As of December 31, 2019, with respect to unvested RSUs, there was $20.8 million of unrecognized compensation
cost that is expected to be recognized over a weighted-average period of 1.1 years. The vesting terms of the RSUs range
from 1.0 to 5.0 years. The total intrinsic value of RSUs vested during the years ended December 31, 2019,
December 25, 2018 and December 26, 2017 was $27.8 million, $32.1 million and $23.4 million, respectively. The
excess tax benefit associated with vested RSUs for the years ended December 31, 2019, December 25, 2018 and
December 26, 2017 was $0.3 million, $1.9 million and $1.6 million, respectively, which was recognized in the income
tax provision.