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 for the three and nine months ended September 30, 2015 and 2014:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(In millions)
Total stock-based compensation expense:
Equity classified awards expense	$	1.8		$	1.9		$	6.4		$	7.5
Liability classified awards expense (credit)	0.3			0.7			(0.5		)	1.2
Total pre-tax stock-based compensation expense	2.1			2.6			5.9			8.7
Book income tax benefit	(0.8		)	(1.0		)	(2.2		)	(3.3		)
Total stock-based compensation expense, net of tax	$	1.3		$	1.6		$	3.7		$	5.4

As of September 30, 2015, total unrecognized compensation expense of $14.3 million related to restricted stock and restricted stock units and $4.1 million related to stock options are expected to be recognized over a weighted average period of 1.72 years for restricted stock and restricted stock units and 1.51 years for stock options.

Equity Classified Awards - Stock Options

The estimated fair value of the stock options granted during the nine months ended September 30, 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	1.54	%
Weighted average historical volatility	36.8	%
Dividend yield	3.17	%
Expected years until exercise	4.5
Weighted average fair value of options granted	$27.20

Stock option balances as of September 30, 2015 and related activity for the nine months ended September 30, 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	133,814		111.54
Exercised	(198,221	)	42.51
Forfeited	(26,386	)	100.45
Outstanding at September 30, 2015	527,322		69.55		6.8	$14.5
Vested at September 30, 2015 and Expected to Vest	502,780		67.97		6.7	$14.4
Exercisable at September 30, 2015	330,734		$	52.71	5.6	$13.4

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 third 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 September 30, 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 September 30, 2015 and activity related to restricted stock and restricted stock units for the nine months ended September 30, 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	117,896		105.55		10,294		113.72
Released	(73,595	)	53.77		(16,567	)	52.19
Forfeited	(30,132	)	85.25		(72	)	113.72
Outstanding at September 30, 2015	247,987		$	90.01	35,277		$	86.49

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 stockholder 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, the awards are considered stock-based compensation in accordance with U.S. GAAP because the multiplier is based on the price of the Company's common stock. For the three months ended September 30, 2015 and 2014, expenses of $0.3 million and $0.7 million, respectively, were included in total stock-based compensation expense related to the LTIP awards. For the nine months ended September 30, 2015 and 2014, a credit of $0.5 million and an expense of $1.2 million, respectively, were included in total stock-based compensation expense related to the LTIP awards. At September 30, 2015 and December 31, 2014, liabilities of $1.5 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.