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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
 
The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income:
 
 
Three months ended March 31,
 
 
2020
 
2019
 
(In millions)
Total stock-based compensation expense:
 
 
 
 
Equity classified awards expense
 
$
4.1

 
$
4.1

Liability classified awards (credit) expense
 
(0.6
)
 
1.0

Total pre-tax stock-based compensation expense
 
3.5

 
5.1

Book income tax benefit
 
(0.9
)
 
(1.3
)
Total stock-based compensation expense, net of tax
 
$
2.6

 
$
3.8


 
As of March 31, 2020, total unrecognized compensation expense of $19.4 million related to restricted stock and restricted stock units and $4.7 million related to stock options are expected to be recognized over a weighted average period of 1.4 years for restricted stock and restricted stock units and 1.6 years for stock options.

Fair Value Assumptions

The Company granted 167,969 stock options during the three months ended March 31, 2020 for which the fair value was estimated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model:
Risk-free interest rate
1.2
%
Weighted average historical volatility
30.5
%
Dividend yield
3.5
%
Expected years until exercise
4.6

Weighted average fair value of options granted
$17.53


Equity Classified Awards - Stock Options

Stock option balances at March 31, 2020, and activity for the three months ended March 31, 2020 were as follows:
 
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted Average
Remaining
Contractual Term
(in Years)
 
Aggregate
Intrinsic
Value (in Millions)
Outstanding at December 31, 2019
 
1,217,438

 
$
66.43

 
 
 
 

Granted
 
167,969

 
87.17

 
 
 
 

Exercised
 
(270,024
)
 
76.01

 
 
 
 

Expired
 
(46,306
)
 
113.72

 
 
 
 
Forfeited
 
(7,139
)
 
82.58

 
 
 
 

Outstanding at March 31, 2020
 
1,061,938

 
65.10

 
7.6
 
$
0.0

Vested at March 31, 2020 and Expected to Vest
 
986,611

 
64.96

 
7.5
 
$
0.0

Exercisable at March 31, 2020
 
418,654

 
$
70.54

 
6.5
 
$
0.0


 
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 2020 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, 2020. 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, 2020, and activity related to restricted stock and restricted stock units for the three months ended March 31, 2020 were as follows:
 
 
Restricted
Stock
 
Weighted
Average
Grant Date
Fair Value
 
Stock-Settled Restricted
Stock Units
 
Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2019
 
224,515

 
$
70.52

 
357,807

 
$
30.35

Granted
 
97,176

 
83.57

 
15,112

 
87.17

Released
 
(66,826
)
 
56.02

 
(30,032
)
 
64.76

Forfeited
 
(12,039
)
 
80.87

 
—

 
—

Outstanding at March 31, 2020
 
242,826

 
$
79.87

 
342,887

 
$
29.11



Liability Classified Awards - Cash-settled Restricted Stock Units

The Company has granted cash-settled restricted stock units to certain employees. These instruments are recorded as liabilities at fair value as of the respective period end.
 
 
Cash-Settled Restricted
Stock Units
 
Weighted
Average
Fair Value
Outstanding at December 31, 2019
 
63,852

 
$
85.63

Granted
 
517

 
85.41

Forfeited
 
(7,597
)
 
86.53

Outstanding at March 31, 2020
 
56,772

 
$
34.51



For the three months ended March 31, 2020 and 2019, a credit of $1.3 million and an expense of $0.6 million, respectively, was included as stock-based compensation expense related to cash-settled restricted stock units.

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 multipliers from 0% to 200% of the target award based on (i) the total stockholder return of Dine Brands Global common stock compared to the total stockholder returns of a peer group of companies and (ii) the percentage increase in the Company's adjusted earnings per share (as defined in the applicable award agreement). The awards are considered stock-based compensation and are classified as liabilities measured at fair value as of the respective period end. For the three months ended March 31, 2020 and 2019, $0.8 million and $0.4 million, respectively, were included in total stock-based compensation expense related to LTIP awards. At March 31, 2020 and December 31, 2019, liabilities of $2.1 million and $2.9 million, respectively, related to LTIP awards were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets.