7. Stock-Based Compensation

On April 5, 2017, our Board approved an amendment to our 2010 Stock Incentive Plan to increase the number of shares of common stock available for grant under the plan to 12.7 million shares from 9.2 million shares. This amendment was approved by our stockholders at our annual meeting held on June 8, 2017. This is our only active stock-based incentive plan, and approximately 3.2 million of these shares were available for grant as of October 2, 2018.

The following table presents information related to stock-based compensation, net of forfeitures (in thousands):


	Thirteen		Thirteen		Thirty-Nine		Thirty-Nine
	Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
	October 2, 2018		October 3, 2017		October 2, 2018		October 3, 2017

Labor expenses	$	(129)	$	1,726	$	4,046	$	5,187
Other operating costs and expenses		110		64		220		226
General and administrative expenses		4,751		3,489		11,541		9,654
Total stock-based compensation (1)		4,732		5,279		15,807		15,067
Income tax benefit		1,180		2,019		3,944		5,763
Total stock-based compensation, net of taxes	$	3,552	$	3,260	$	11,863	$	9,304

Capitalized stock-based compensation (2)	$	71	$	58	$	209	$	207

(1)

Changes or true ups of forfeiture rate estimates may cause variability in quarterly amounts.

(2)

It is our policy to capitalize the portion of stock-based compensation costs for our internal development and legal departments that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations, lease, intellectual property and liquor license acquisition activities and equipment installation. Capitalized stock-based compensation is included in property and equipment, net and other assets on the condensed consolidated balance sheets.

Stock Options

We did not issue any stock options during the third quarters of fiscal 2018 or fiscal 2017. Stock option activity during the thirty-nine weeks ended October 2, 2018 was as follows:


				Weighted
				Average
		Weighted		Remaining
		Average		Contractual	Aggregate
	Shares	Exercise Price		Term	Intrinsic Value (1)
	(In thousands)	(Per share)		(In years)	(In thousands)
Outstanding at January 2, 2018	1,741	$	42.25	4.0	$	14,766
Granted	381		47.22
Exercised	(245)		29.97
Forfeited or cancelled	(37)		50.01
Outstanding at October 2, 2018	1,840	$	44.70	4.3	$	15,200

Exercisable at October 2, 2018	1,051	$	40.48	2.8	$	12,533

(1)

Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal period end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised their options on the fiscal period end date.

The total intrinsic value of options exercised during the thirteen and thirty-nine weeks ended October 2, 2018 was $0.8 million and $5.5 million, respectively. The total intrinsic value of options exercised during the thirteen and thirty-nine weeks ended October 3,2017 was $0.4 million and $10.4 million, respectively. As of October 2, 2018, total unrecognized stock-based compensation expense related to unvested stock options was $7.7 million, which we expect to recognize over a weighted average period of approximately 3.3 years.

Restricted Shares and Restricted Share Units

Restricted share and restricted share unit activity during the thirty-nine weeks ended October 2, 2018 was as follows:


		Weighted
		Average
	Shares	Fair Value
	(In thousands)	(Per share)
Outstanding at January 2, 2018	1,694	$	46.38
Granted	444		48.02
Vested	(356)		41.57
Forfeited	(116)		46.17
Outstanding at October 2, 2018	1,666	$	47.79

Fair value of our restricted shares and restricted share units is based on our closing stock price on the date of grant. The weighted average fair value for restricted shares and restricted share units issued during the third quarter of fiscal 2018 and fiscal 2017 was $50.15 and $42.03, respectively. The fair value of shares that vested during the thirteen and thirty-nine weeks ended October 2, 2018 was $3.0 million and $14.8 million, respectively. The fair value of shares that vested during the thirteen and thirty-nine weeks ended October 3, 2017 was $2.2 million and $15.1 million, respectively. As of October 2, 2018, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $34.8 million, which we expect to recognize over a weighted average period of approximately 3.0 years.