Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

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

STOCK-BASED COMPENSATION

On October 20, 2015, the Board of Directors of Four Corners adopted, and Four Corners’ sole stockholder, Rare Hospitality International, Inc., approved, the Four Corners Property Trust, Inc. 2015 Omnibus Incentive Plan (the “Plan”). The Plan provides for the grant of awards of nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), deferred stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards (each, an “Award” and collectively, the “Awards”) to eligible participants. Subject to adjustment, the maximum number of shares of stock reserved for issuance under the Plan is equal to 2,100,000 shares.

At March 31, 2016, 2,013,543 shares of common stock were available for award under the Plan. The unamortized compensation cost of awards issued under the Incentive Plan totaled $3.9 million at March 31, 2016 as shown in the following table.



(In thousands)	Restricted Stock Units			Restricted Stock Awards			Performance Stock Awards			Total
Unrecognized compensation cost at beginning of period	$	1,483		$	—		$	—		$	1,483
Equity grants	—			842			1,906			2,748
Equity grant forfeitures	—			—			—			—
Equity compensation expense	(169		)	(44		)	(104		)	(317		)
Unrecognized Compensation Cost at End of Period	$	1,314		$	798		$	1,802		$	3,914

At March 31, 2016, the weighted average amortization period remaining for all of our equity awards was 2.6 years.

RSUs

RSUs have been granted at a value equal to the five-day average closing market price of our common stock on the date of grant and will be settled in stock at the end of their vesting periods, which range between one and three years, at the then market price of our common stock.

At March 31, 2016 there were 55,891 RSUs outstanding, of which 1,655 vested and were distributed. There were no RSUs granted or forfeitured during the three months ended March 31, 2016. Unvested RSUs at March 31, 2016 will vest at varying times through 2018.

Restricted Stock Awards

During the three months ended March 31, 2016, there were 51,209 shares of restricted stock, as well as dividend equivalent rights, granted under the Plan. These shares generally vest over a three-year service period. Unvested restricted stock awards at March 31, 2016 will vest at varying times through 2019.

Performance-Based Restricted Stock Awards

During the three months ended March 31, 2016, there were 68,468 performance shares, as well as dividend equivalent rights, granted under the Plan. The performance period of this grant runs from January 1, 2016 through December 31, 2018. Pursuant to the performance share award agreement, each participant is eligible to vest in and receive shares of the Company's common stock based on the initial target number of shares granted multiplied by a percentage range between 0% and 200%. The percentage range is based on the attainment of a total shareholder return of the Company compared to certain specified peer groups of companies during the performance period. The fair value of the performance shares was estimated on the date of grant using a Monte Carlo Simulation model. Based on the grant date fair value, the Company expects to recognize $1.9 million in compensation expense on a straight-line basis over the requisite service period associated with this market-based grant.