On April 4, 2019, our Board adopted The Cheesecake Factory Incorporated Stock Incentive Plan (the “Plan”) under which incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares and restricted share units may be granted to staff members, consultants and non-employee directors. The Plan replaced the 2010 Stock Incentive Plan.

The following table presents the stock-based compensation recorded in the consolidated financial statements:

(1)

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

Stock Options

We did not issue any stock options during the second quarter of fiscal 2020 or 2019. Stock option activity during the twenty-six weeks ended June 30, 2020 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 December 31, 2019	1,829	$	47.32	4.3	$	844
Granted	654		40.16
Exercised	(4)		29.79
Forfeited or cancelled	(43)		48.21
Outstanding at June 30, 2020	2,436	$	45.41	5.4	$	9,783

Exercisable at June 30, 2020	1,214	$	46.77	2.8	$	5,696

(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.

There was no option exercised during the thirteen weeks ended June 30, 2020. The total intrinsic value of options exercised during the twenty-six weeks ended June 30, 2020 was $35.6 million. The total intrinsic value of options exercised during the thirteen and twenty-six weeks ended July 2, 2019 was $0.2 million and $3.6 million, respectively. As of June 30, 2020, total unrecognized stock-based compensation expense related to unvested stock options was $9.4 million, which we expect to recognize over a weighted-average period of approximately 5.2 years.

Restricted Shares and Restricted Share Units

Restricted share and restricted share unit activity during the twenty-six weeks ended June 30, 2020 was as follows:


		Weighted-
		Average
	Shares	Fair Value
	(In thousands)	(Per share)
Outstanding at December 31, 2019	1,764	$	47.76
Granted	586		39.80
Vested	(247)		50.20
Forfeited	(106)		52.41
Outstanding at June 30, 2020	1,997	$	44.87

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 second quarter of fiscal 2020 and 2019 was $23.56 and $45.15, respectively. The fair value of shares that vested during the thirteen weeks and twenty-six weeks ended June 30, 2020 was $1.8 million and $12.4 million, respectively. The fair value of shares that vested during the thirteen weeks and twenty-six weeks ended July 2, 2019 was $1.3 million and $12.4 million, respectively. As of June 30, 2020, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $44.6 million, which we expect to recognize over a weighted-average period of approximately 3.2 years.