Stock-Based Employee Compensation

3 Months Ended

Mar. 21, 2017

Stock-Based Employee Compensation [Abstract]

Stock-Based Employee Compensation

3. STOCK-BASED EMPLOYEE COMPENSATION

2012 Long-Term Equity Incentive Plan

On July 16, 2012, the Company adopted the Del Frisco’s Restaurant Group, Inc. 2012 Long-Term Equity Incentive Plan (the “2012 Plan”), which allows the Company to grant stock options, restricted stock, restricted stock units, deferred stock units and other equity-based awards to directors, officers, key employees and other key individuals performing services for the Company. The 2012 Plan provides for granting of options to purchase shares of common stock at an exercise price not less than the fair value of the stock on the date of grant. Equity-based awards vest or become exercisable at various periods ranging from one to four years from the date of grant. The 2012 Plan has 2,232,800 shares of common stock authorized for issuance under the plan. There were 866,450 shares of common stock issuable upon exercise of outstanding options and 520,428 shares of unvested restricted stock outstanding at March 21, 2017with 773,509 sharesof common stock available for future grants.

The following table details the Company’s total share-based compensation cost during the 12 weeks ended March 21, 2017 and March 22, 2016 as well as where the costs were expensed (in thousands):

	12 Weeks Ended
	March 21,		March 22,
	2017		2016
Restaurant operating expenses	$	73	$	93
General and administrative costs		460		560
Total stock compensation cost	$	533	$	653

Restricted Stock and Restricted Stock Units

The following table summarizes restricted stock and restricted stock unit activity during the 12 weeks ended March 21, 2017:

	12 Weeks Ended March 21, 2017
	Shares		Weighted average grant date fair value		Aggregate intrinsic value ($000's)
Outstanding at beginning of period		345,519	$	12.57
Granted		203,495		17.15
Vested		(10,382)		16.79
Forfeited		(18,204)		16.92
Outstanding at end of period		520,428	$	14.13	$	9,081

As of March 21, 2017,  there was $6.1 million of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a period of approximately 2.6 years.

Stock Options

The following table summarizes stock option activity during the 12 weeks ended March 21, 2017:

	12 Weeks Ended March 21, 2017
	Shares		Weighted average exercise price		Weighted average remaining contractual term		Aggregate intrinsic value ($000's)
Outstanding at beginning of period		927,675	$	18.33
Exercised		(30,100)		13.00
Forfeited		(31,125)		21.00
Outstanding at end of period		866,450	$	18.42		5.5 years	$	1,314
Options exercisable at end of period		735,075	$	17.95		5.3 years	$	1,308

A summary of the status of non-vested stock options as of March 21, 2017 and changes during the 12 weeks ended March 21, 2017 is presented below:

	12 Weeks Ended
	March 21, 2017
	Shares	Weighted average grant-date fair value
Non-vested stock options at beginning of period	151,625	$	8.44
Vested	(3,000)		9.99
Forfeited	(17,250)		8.50
Non-vested stock options at end of period	131,375	$	8.40

As of March 21, 2017, there was $0.4 million of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a period of approximately 0.6 years.