Stock-Based Employee Compensation

6 Months Ended

Jun. 13, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Employee Compensation

STOCK-BASED EMPLOYEE COMPENSATION

2012 Long-Term Equity Incentive Plan

On July 16, 2012, we adopted the Del Frisco’s Restaurant Group, Inc. 2012 Long-Term Equity Incentive Plan (the “2012 Plan”), which allows us 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 us. 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 753,223 shares of common stock issuable upon exercise of outstanding options and 511,388 shares of unvested restricted stock outstanding at June 13, 2017 with 834,850 shares of common stock available for future grants.

The following table details our total share-based compensation cost, as well as where the costs were expensed (in thousands):

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	12 Weeks Ended				24 Weeks Ended
	June 13, 2017		June 14, 2016		June 13, 2017		June 14, 2016
Restaurant operating expenses	$	61	$	103	$	134	$	197
General and administrative costs	731		632		1,193		1,189
Total stock compensation cost	$	792	$	735	$	1,327	$	1,386

Restricted Stockand Restricted Stock Units

The following table summarizes restricted stock and restricted stock unit activity:

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	24 Weeks Ended June 13, 2017
	Shares		Weighted average grant date fair value		Aggregate intrinsic value ($000's)
Outstanding at beginning of period	345,519		$	17.51
Granted	279,900		17.34
Vested	(49,081	)	17.41
Forfeited	(64,950	)	17.34
Outstanding at end of period	511,388		$	17.42	$	8,515

As of June 13, 2017, there was $4.1 million of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a period of approximately 2.5 years. 

Stock Options

The following table summarizes stock option activity:

	24 Weeks Ended June 13, 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	(52,327	)	13.00
Forfeited	(122,125	)	21.22
Outstanding at end of period	753,223		$	18.23	5.8 years	$	981
Options exercisable at end of period	648,348		$	17.73	5.7 years	$	981

A summary of changes in and the status of non-vested stock options is presented below:

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	24 Weeks Ended
	June 13, 2017
	Shares		Weighted average grant-date fair value
Non-vested stock options at beginning of period	151,625		$	8.44
Vested	(10,500	)	7.85
Forfeited	(36,250	)	8.51
Non-vested stock options at end of period	104,875		$	8.48

As of June 13, 2017, there was $0.1 million of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a period of approximately 0.5 years.