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Stock-Based Compensation Arrangements (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Stock Option Activity
2014 Equity Incentive Plan
The 2014 Equity Incentive Plan provides Parent authority to grant equity incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards or performance compensation awards to certain directors, officers or employees of the Company.
During 2017, 2016 and 2015, Parent granted options to purchase 123,603 shares, 101,110 shares and 519,414 shares, respectively, of its common stock to certain directors, officers and employees of the Company. The options are subject to certain service and performance based vesting criteria, and were split evenly between Tranches A, B and C, which have different vesting requirements. The options in Tranche A are service based, and vest and become exercisable in equal installments on each of the first five anniversaries of the respective grant dates. The Black-Scholes model was used to estimate the fair value of Tranche A stock options. Tranche B and Tranche C options are performance based and vest and become exercisable when certain return thresholds are achieved. The Monte Carlo simulation model was used to estimate the fair value of Tranche B and Tranche C stock options. Unvested Tranche A options are also subject to accelerated vesting and exercisability on the first anniversary of a change in control of Queso Holdings Inc. or within 12 months following such a change in control. Tranche B and C options may also vest and become exercisable if applicable hurdles are achieved in connection with an initial public offering. Compensation costs related to options in the Parent were recorded by the Company.
The weighted-average fair value of the options granted in 2017, 2016 and 2015 was estimated at $3.71, $2.28 and $1.28 per option, $2.99, $1.68 and $0.87 per option and $2.83, $1.44 and $0.84 per option, respectively, for Tranches A, B and C, respectively, on the date of grant based on the following assumptions:
 
Fiscal Year
 
2017
 
2016
 
2015
 
August 2017
 
February 2017
 
 
 
 
 
 
 
 
 
 
 
 
Dividend yield
—
%
 
—
%
 
—
%
 
—
%
Volatility for Tranche A
35
%
 
34
%
 
30
%
 
30
%
Volatility for Tranches B and C
34
%
 
33
%
 
30
%
 
30
%
Risk-free interest rate for Tranche A
1.39
%
 
1.38
%
 
1.09
%
 
1.30
%
Risk-free interest rate for Tranches B and C
1.28
%
 
1.16
%
 
0.99
%
 
1.30
%
Expected life - years
1.7

 
2.2

 
3.6

 
3.7

A summary of the option activity under the equity incentive plan as of December 31, 2017 and the activity for 2017 is presented below:

 
Stock Options
Weighted Average Exercise Price (1)
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value
 
 
 
($ per share)
 
($ in thousands)
Outstanding stock options, January 1, 2017
 
2,400,914

$8.74
 
 
Options Granted
 
123,603

$16.26
 
 
Options Forfeited
 
(175,229
)
$10.57
 
 
Outstanding stock options, December 31, 2017
 
2,349,288

$9.00
6.6
$
13,006

Stock options expected to vest, December 31, 2017
 
1,745,042

$9.14
6.6
$
9,425

Exercisable stock options, December 31, 2017
 
410,354

$8.36
6.3
$
2,534


_________________
(1) The weighted average exercise price reflects the original grant date fair value per option as adjusted for the dividend payment made in August 2015.
As of December 31, 2017, we had $1.6 million of total unrecognized share based compensation expense related to unvested options, net of expected forfeitures, which is expected to be amortized over the remaining weighted average period of 1.2 years.
In February 2018, the Parent granted additional options to purchase 112,769 shares of its common stock to certain officers and employees of the Company.
Schedule of Stock-Based Compensation Expense and Associated Tax Benefits Recognized

_________________
(1) The weighted average exercise price reflects the original grant date fair value per option as adjusted for the dividend payment made in August 2015.
As of December 31, 2017, we had $1.6 million of total unrecognized share based compensation expense related to unvested options, net of expected forfeitures, which is expected to be amortized over the remaining weighted average period of 1.2 years.
In February 2018, the Parent granted additional options to purchase 112,769 shares of its common stock to certain officers and employees of the Company.
A summary of stock based compensation costs recognized and capitalized is presented below:
 
 
Fiscal Year
 
 
December 31,
2017
 
January 1,
2017
 
January 3,
2016
 
 
(in thousands)
Stock-based compensation costs
 
$
620

 
$
702

 
$
855

Portion capitalized as property and equipment (1)
 
(14
)
 
(13
)
 
(17
)
Stock-based compensation expense recognized
 
$
606

 
$
689

 
$
838

Tax benefit recognized from stock-based compensation awards
 
$
—

 
$
4

 
$
18

 __________________
(1)We capitalize the portion of stock-based compensation costs related to our design, construction, facilities and legal departments that are directly attributable to our venue development projects, such as the design and construction of a new venue and the remodeling and expansion of our existing venues. Capitalized stock-based compensation costs attributable to our venue development projects are included in “Property and equipment, net” in the Consolidated Balance Sheets.