Stock-Based Compensation (Tables)

12 Months Ended

Jan. 01, 2019

Stock-Based Compensation

Schedule of information related to stock-based compensation, net of forfeitures

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

	Fiscal Year
	2018		2017(2)		2016
Labor expenses	$	5,681	$	5,236	$	6,023
Other operating costs and expenses		287		243		251
General and administrative expenses		14,020		10,978		15,199
Total stock-based compensation		19,988		16,457		21,473
Income tax benefit		4,987		6,295		8,213
Total stock-based compensation, net of taxes	$	15,001	$	10,162	$	13,260
Capitalized stock-based compensation (1)	$	262	$	239	$	338

(1) 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 consolidated balance sheets.

(2) Fiscal 2017 stock-based compensation expense includes a $3.9 million benefit for an out-of-period adjustment related to a correction in stock-based compensation valuation and forfeitures. We believe this adjustment is immaterial to the applicable prior periods.

Schedule of stock option activity

				Weighted
				Average
		Weighted		Remaining	Aggregate
		Average		Contractual	Intrinsic
	Shares	Exercise Price		Term	Value(1)
	(In thousands)	(Per share)		(In years)	(In thousands)
Outstanding at beginning of year	1,741	$	42.25	4.0	$	14,766
Granted	381	$	47.22
Exercised	(286)	$	30.00
Forfeited or cancelled	(37)	$	50.33
Outstanding at end of year	1,799	$	45.03	4.1	$	5,606
Exercisable at end of year	1,010	$	40.89	2.6	$	5,606

(1) Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal year-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 year -end date.

Schedule of restricted share and restricted share unit activity

Restricted share and restricted share unit activity during fiscal 2018 was as follows:

		Weighted
		Average
		Fair
	Shares	Value
	(In thousands)	(Per share)
Outstanding at beginning of year	1,694	$	46.38
Granted	576	$	48.22
Vested	(424)	$	41.94
Forfeited	(144)	$	46.53
Outstanding at end of year	1,702	$	48.08