Stock-based compensation

We have an incentive compensation plan for our employees and outside directors. One component of this plan is restricted stock and restricted stock units, which grants the recipient the right of ownership of our common stock, generally conditional on continued service for a specified period. Another component is stock options.

The following table presents the stock-based compensation expense included in the Consolidated Statements of Operations (in thousands):



	Years Ended
	December 26, 2014		December 27, 2013
Restricted stock and units	$	1,704	$	898
Stock options	775		1,016
Total after-tax stock-based compensation expense	$	2,479	$	1,914
Total stock-based compensation included in:
Selling, general and administrative expenses	$	1,304	$	1,914
CEO transition costs	$	1,175	$	—

There was no income tax benefit for the years ended December 26, 2014 and December 27, 2013 due to the establishment of a full valuation allowance on deferred tax assets in 2011.

In July 2014, in connection with the resignation of our former Chief Executive Officer and President, the Company accelerated the vesting of 0.3 million restricted stock awards and units and 0.1 million stock options that had been previously granted and extended the period in which those options could be exercised from six months of his date of termination. As a result of the accelerated vesting of these awards, the Company recognized an additional $1.2 million of stock-based compensation expense for the year ended December 26, 2014 as a component of CEO transition costs in the Consolidated Statements of Operations.

Restricted stock and units

A summary of our restricted stock activity was as follows (in thousands, except per share data):



	December 26, 2014				December 27, 2013
	Shares		Weighted Average Stock Grant Price (Per Share)		Shares		Weighted Average Stock Grant Price (Per Share)
Opening nonvested restricted stock and units	300		$	8.91	104		$	26.92
Granted	760		2.85		284		3.80
Vested	(445	)	4.18		(55	)	17.15
Forfeited/canceled	(41	)	4.49		(33	)	7.82
Ending nonvested restricted stock and units	574		$	3.01	300		$	8.91

As of December 26, 2014, there was approximately $1.3 million of total unrecognized compensation cost related to grants of restricted stock units expected to be recognized over a weighted-average period of approximately 2.86 years.

Stock options

A summary of our stock option activity was as follows (in thousands, except per share data):



	December 26, 2014					December 27, 2013
	Shares		Weighted Average Option Exercise Price (Per Share)		Aggregate Intrinsic Value	Shares		Weighted Average Option Exercise Price (Per Share)		Aggregate Intrinsic Value
Opening stock options outstanding	343		$	18.13		127		$	45.10
Granted	17		2.86			253		3.82
Exercised	—		—			—		—
Forfeited/canceled	(48	)	7.46			(37	)	12.69
Ending stock options outstanding	312		18.87		—	343		18.13		—
Ending stock options exercisable	227		$	24.02	—	54		$	45.44	—

The weighted-average fair value of all stock options granted during December 26, 2014 and December 27, 2013 was calculated as $2.73 per share on the date of grant using the Black-Scholes option-pricing model, which involves management assumptions about the expected term of the option, the risk free interest rate and the estimated volatility. The expected term is calculated using the “simplified” method. Under this method, the expected life is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company will continue to use the “simplified” method until it has sufficient historical exercise data to estimate the expected life of the options. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected term at the grant date. The historical volatility of the Company's stock is used as the basis for the volatility assumption since the Company believes the historical volatility is representative of the expected volatility over the expected term. The weighted-average assumptions of our stock options issued during 2014 and 2013 based on the date of grant are as follows:



	December 26, 2014		December 27, 2013
Dividend yield	—	%	—	%
Volatility	97.6	%	97.6	%
Risk-free interest rate	0.8	%	0.8	%
Expected life (years)	4.8		4.8

The exercise prices of the options outstanding as of December 26, 2014 range from $2.86 per share to $61.50 per share. As of December 26, 2014, there was approximately $0.2 million of total unrecognized compensation costs related to our outstanding stock option grants to be recognized over a weighted-average period of approximately 2.21 years. There were no stock options exercised during the years ended December 26, 2014 and December 27, 2013.