Texas Roadhouse, Inc. and SubsidiariesNotes to Consolidated Financial Statements(Tabular amounts in thousands, except share and per share data)F-26
Summary Details for PSUs
Weighted-Average Weighted-Average
Grant Date Fair Remaining Contractual Aggregate
Shares Value Term (years) Intrinsic Value
Outstanding at December 25, 2018 ............... 90,000 $ 54.18
Granted ...................................... 117, 000 61.86
Incremental Performance Shares (1) .............. 52,169 54.18
Forfeited ..................................... (40,000) 61.86
Vested ....................................... (142,169) 54.18
Outstanding at December 31, 2019 ............... 77,000 $ 61.86 0.1 $ 4,337
(1) Additional shares from the December 2017 PSU grant that vested in January 2019 due to exceeding the initial 100%
target.
We grant PSUs to certain of our executives subject to a one-year vesting and the achievement of certain earnings
targets, which determine the number of units to vest at the end of the vesting period. Share-based compensation expense
is recognized for the number of units expected to vest at the end of the period and is expensed beginning on the grant
date and through the performance period. For each grant, PSUs vest after meeting the performance and service
conditions. The total intrinsic value of PSUs vested during the years ended December 31, 2019, December 25, 2018 and
December 26, 2017 was $8.8 million, $8.9 million and $8.6 million, respectively.
On January 8, 2020, 95,946 shares vested related to the January 2019 PSU grant and are expected to be distributed
during the 13 weeks ending March 31, 2020. This included 77,000 granted shares and 18,946 incremental shares due to
the grant exceeding the initial 100% target. As of December 31, 2019, with respect to unvested PSUs, there was $0.1
million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.1 year.
There was no allowable excess tax benefit associated with vested PSUs for the year ended December 31, 2019. The
excess tax benefit associated with vested PSUs for the years ended December 25, 2018 and December 26, 2017 was $0.7
million and $0.8 million, respectively, which was recognized within the income tax provision.
Summary Details for Stock Options
No stock options were granted or vested during the fiscal years ended December 31, 2019, December 25, 2018 and
December 26, 2017. The total intrinsic value of options exercised during the year ended December 26, 2017 was $4.0
million.
For the year ended December 26, 2017, cash received before tax withholdings from options exercised was $1.6
million. The excess tax benefit for the year ended December 26, 2017 was $1.0 million which was recognized within the
income tax provision.
(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.