Stock-Based Compensation

The following table summarizes the components of the Company’s stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 and 2014:



		Three Months Ended
		March 31,
		2015			2014
	(In millions)
Total stock-based compensation expense:
Equity classified awards expense		$	2.4		$	3.2
Liability classified awards expense (credit)		0.3			(0.2		)
Total pre-tax stock-based compensation expense		2.7			3.0
Tax benefit		(1.0		)	(1.1		)
Total stock-based compensation expense, net of tax		$	1.7		$	1.9

As of March 31, 2015, total unrecognized compensation costs of $15.0 million related to restricted stock and restricted stock units and $5.7 million related to stock options are expected to be recognized over a weighted average period of 1.82 years for restricted stock and restricted stock units and 1.80 years for stock options.

Equity Classified Awards - Stock Options

The estimated fair value of the stock options granted during the three months ended March 31, 2015 was calculated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model:



Risk-free interest rate	1.56	%
Weighted average historical volatility	37.5	%
Dividend yield	3.10	%
Expected years until exercise	4.50
Forfeitures	11.0	%
Weighted average fair value of options granted	$28.37

Stock option balances as of March 31, 2015 and activity related to stock options for the three months ended March 31, 2015 were as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (in Millions)
Outstanding at December 31, 2014	618,115		$	53.10
Granted	117,511		113.72
Exercised	(194,648	)	42.16
Outstanding at March 31, 2015	540,978		70.21		7.5	$20.7
Vested at March 31, 2015 and Expected to Vest	499,627		67.67		7.4	$20.3
Exercisable at March 31, 2015	327,100		$	51.83	6.4	$18.0

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price of the Company’s common stock on the last trading day of the first quarter of 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2015. The aggregate intrinsic value will change based on the fair market value of the Company’s common stock and the number of in-the-money options.

Equity Classified Awards - Restricted Stock and Restricted Stock Units

Outstanding balances as of March 31, 2015 and activity related to restricted stock and restricted stock units for the three months ended March 31, 2015 were as follows:



	Restricted Stock		Weighted Average Grant Date Fair Value		Restricted Stock Units		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2014	233,818		$	70.14	41,622		$	66.92
Granted	63,728		113.62		9,695		113.72
Released	(61,974	)	52.30		(13,567	)	52.19
Forfeited	(5,413	)	72.97		—		—
Outstanding at March 31, 2015	230,159		$	86.91	37,750		$	86.54

Liability Classified Awards - Long-Term Incentive Awards

The Company has granted cash long-term incentive awards (“LTIP awards”) to certain employees. Annual LTIP awards vest over a three-year period and are determined using a multiplier from 0% to 200% of the target award based on the total shareholder return of DineEquity, Inc. common stock compared to the total stockholder returns of a peer group of companies. Although LTIP awards are both denominated and paid only in cash, because the multiplier is based on the price of the Company's common stock, the awards are considered stock-based compensation in accordance with U.S. GAAP and are recorded as liabilities based on the closing price of the Company’s common stock as of each period end. For the three months ended March 31, 2015 and 2014, an expense of $0.3 million and a credit of $0.2 million, respectively, were included in total stock-based compensation expense related to the LTIP awards. At March 31, 2015 and December 31, 2014, liabilities of $2.3 million and $4.0 million, respectively, related to LTIP awards were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets.