Share-based Compensation

9 Months Ended

Sep. 27, 2011

Share-based Compensation

Share-based Compensation

(2)Share-based Compensation

We may grant incentive and non-qualified stock options to purchase shares of common stock, stock bonus awards (restricted stock unit awards (“RSUs”)) and restricted stock awards under the Texas Roadhouse, Inc. 2004 Equity Incentive Plan (the “Plan”).  Beginning in 2008, we changed the method by which we provide share-based compensation to our employees by eliminating stock option grants and, instead, granting RSUs 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.

The following table summarizes the share-based compensation recorded in the accompanying condensed consolidated statements of income:

	13 Weeks Ended				39 Weeks Ended
	September 27, 2011		September 28, 2010		September 27, 2011		September 28, 2010
Labor expense	$	1,000	$	876	$	2,934	$	2,479
General and administrative expense	1,418		1,093		5,217		3,226
Total share-based compensation expense	$	2,418	$	1,969	$	8,151	$	5,705

A summary of share-based compensation activity by type of grant as of September 27, 2011 and changes during the period then ended is presented below.

Summary Details for Plan Share Options

	Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at December 28, 2010	3,996,512		$	11.87
Granted	—		—
Forfeited	(17,714	)	15.50
Exercised	(412,502	)	10.89
Outstanding at September 27, 2011	3,566,296		$	11.96	3.89	$	9,896
Exercisable at September 27, 2011	3,510,267		$	11.94	3.85	$	9,828

No stock options were granted during the 39 weeks ended September 27, 2011.

The total intrinsic value of options exercised during the 13 weeks ended September 27, 2011 and September 28, 2010 was $0.4 million and $0.6 million, respectively.  The total intrinsic value of options exercised during the 39 weeks ended September 27, 2011 and September 28, 2010 was $2.6 million and $7.2 million, respectively.  As of September 27, 2011, with respect to unvested stock options, there was an immaterial amount of unrecognized compensation cost that is expected to be recognized over a weighted-average period of less than a year.  The total grant date fair value of stock options vested for both 13 week periods ended September 27, 2011 and September 28, 2010 was $0.1 million.  The total grant date fair value of stock options vested for the 39 week periods ended September 27, 2011 and September 28, 2010 was $0.5 million and $1.1 million, respectively.

Summary Details for RSUs

	Shares		Weighted- Average Grant Date Fair Value
Outstanding at December 28, 2010	1,205,410		$	11.71
Granted	676,852		16.55
Forfeited	(140,859	)	16.39
Vested	(557,677	)	11.86
Outstanding at September 27, 2011	1,183,726		$	13.67

As of September 27, 2011, with respect to unvested RSUs, there was $8.1 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 1.4 years.  The vesting terms of the RSUs range from 1.0 to 5.0 years.  The total grant date fair value of RSUs vested for the 13 week periods ended September 27, 2011 and September 28, 2010 was $1.9 million and $1.2 million, respectively.  The total grant date fair value of RSUs vested for the 39 week periods ended September 27, 2011 and September 27, 2010 was $7.4 million and $5.4 million, respectively.