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,
	2019			2018
	(In millions)
Total stock-based compensation expense:
Equity classified awards expense	$	4.1		$	3.4
Liability classified awards expense	1.0			0.5
Total pre-tax stock-based compensation expense	5.1			3.9
Book income tax benefit	(1.3		)	(1.0		)
Total stock-based compensation expense, net of tax	$	3.8		$	2.9

As of March 31, 2019, total unrecognized compensation expense of $24.1 million related to restricted stock and restricted stock units and $5.8 million related to stock options are expected to be recognized over a weighted average period of 1.7 years for restricted stock and restricted stock units and 1.8 years for stock options.

Fair Value Assumptions

The Company granted 132,832 stock options during the three months ended March 31, 2019 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	2.5	%
Weighted average historical volatility	30.3	%
Dividend yield	2.8	%
Expected years until exercise	4.7
Weighted average fair value of options granted	$21.93

Equity Classified Awards - Stock Options

Stock option balances at March 31, 2019, and activity for the three months ended March 31, 2019 were as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (in Millions)
Outstanding at December 31, 2018	1,439,708		$	63.21
Granted	132,832		98.97
Exercised	(116,590	)	58.05
Outstanding at March 31, 2019	1,455,950		66.88		6.8	$	38.2
Vested at March 31, 2019 and Expected to Vest	1,311,896		67.76		6.6	$	33.3
Exercisable at March 31, 2019	682,494		$	75.92	4.6	$	12.1

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 2019 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, 2019. 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, 2019, and activity related to restricted stock and restricted stock units for the three months ended March 31, 2019 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, 2018	267,242		$	63.97	374,529		$	31.05
Granted	51,457		98.58		13,464		98.97
Released	(48,022	)	79.60		(12,293	)	90.34
Forfeited	(2,562	)	48.22		—		—
Outstanding at March 31, 2019	268,115		$	69.96	375,700		$	30.95

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 Grant Date Fair Value
Outstanding at December 31, 2018	53,766		$	94.77
Granted	19,736		91.05
Released	(317	)	82.16
Forfeited	(3,622	)	98.96
Outstanding at March 31, 2019	69,563		$	93.58

For the three months ended March 31, 2019, and 2018, $0.6 million and $0.1 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). 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, 2019 and 2018, $0.4 million and $0.4 million, respectively were included in total stock-based compensation expense related to LTIP awards. At March 31, 2019 and December 31, 2018, liabilities of $1.7 million and $2.4 million, respectively, related to LTIP awards were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets.