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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2019
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 September 30,
 
Nine months ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In millions)
Total stock-based compensation expense:
 
 
 
 
 
 
 
Equity classified awards expense
$
2.4

 
$
2.4

 
$
8.3

 
$
8.1

Liability classified awards expense
0.2

 
1.4

 
2.6

 
2.3

Total pre-tax stock-based compensation expense
2.6

 
3.8

 
10.9

 
10.4

Book income tax benefit
(0.6
)
 
(1.0
)
 
(2.8
)
 
(2.7
)
Total stock-based compensation expense, net of tax
$
2.0

 
$
2.8

 
$
8.1

 
$
7.7


 
As of September 30, 2019, total unrecognized compensation expense of $18.3 million related to restricted stock and restricted stock units and $3.8 million related to stock options are expected to be recognized over a weighted average period of 1.5 years for restricted stock and restricted stock units and 1.5 years for stock options.
 
Fair Value Assumptions

The Company granted 132,832 stock options during the nine months ended September 30, 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 September 30, 2019, and activity for the nine months ended September 30, 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
 
(188,489
)
 
57.43

 
 
 
 

Expired
 
(37,005
)
 
93.06

 
 
 
 
Forfeited
 
(85,526
)
 
70.70

 
 
 
 

Outstanding at September 30, 2019
 
1,261,520

 
66.45

 
6.1
 
$
18.0

Vested at September 30, 2019 and Expected to Vest
 
1,169,198

 
67.19

 
6.0
 
$
16.0

Exercisable at September 30, 2019
 
578,235

 
$
77.25

 
3.7
 
$
4.0


 
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 third 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 September 30, 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 September 30, 2019, and activity related to restricted stock and restricted stock units for the nine months ended September 30, 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

 
$
63.35

 
374,529

 
$
31.05

Granted
 
73,591

 
97.27

 
19,994

 
97.22

Released
 
(71,855
)
 
76.63

 
(12,293
)
 
90.34

Forfeited
 
(34,149
)
 
65.73

 
(27,802
)
 
34.53

Outstanding at September 30, 2019
 
234,829

 
$
70.27

 
354,428

 
$
30.86



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

 
$
79.07

Granted
 
20,734

 
75.34

Released
 
(317
)
 
82.16

Forfeited
 
(8,799
)
 
90.51

Outstanding at September 30, 2019
 
65,384

 
$
76.32



For the three months ended September 30, 2019 and 2018, a credit of $0.2 million and an expense of $0.3 million, respectively, was included as stock-based compensation expense related to cash-settled restricted stock units. For the nine months ended September 30, 2019, and 2018, $1.0 million and $0.7 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 September 30, 2019 and 2018, $0.5 million and $1.1 million, respectively, were included in total stock-based compensation expense related to LTIP awards. For the nine months ended September 30, 2019 and 2018, $1.7 million and $1.6 million, respectively, were included in total stock-based compensation expense related to LTIP awards. At September 30, 2019 and December 31, 2018, liabilities of $2.9 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.