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

(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 condensed consolidated balance sheets.

Stock Options

We did not issue any stock options during the third quarter of fiscal 2021 or 2020. Stock option activity during the thirty-nine weeks ended September 28, 2021 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 29, 2020	2,294	$	45.35	5.0	$	307
Granted	—		—
Exercised	(577)		42.97
Forfeited or cancelled	(1)		61.59
Outstanding at September 28, 2021	1,716	$	46.14	5.4	$	6,586

Exercisable at September 28, 2021	864	$	48.97	3.8	$	1,573

(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 were no options exercised during the thirteen weeks ended September 28, 2021. The total intrinsic value of options exercised during thirty-nine weeks ended September 28, 2021 was $7.1 million. There were no options exercised during the thirteen weeks ended September 29, 2020. The total intrinsic value of options exercised during the thirty-nine weeks ended September 29, 2020 was $35,606. As of September 28, 2021, total unrecognized stock-based compensation expense related to unvested stock options was $5.4 million, which we expect to recognize over a weighted-average period of approximately 2.7 years.

Restricted Shares and Restricted Share Units

Restricted share and restricted share unit activity during the thirty-nine weeks ended September 28, 2021 was as follows:


		Weighted-
		Average
		Fair
	Shares	Value
	(In thousands)	(Per share)
Outstanding at December 29, 2020	2,008	$	43.70
Granted	580		50.75
Vested	(278)		47.76
Forfeited	(182)		43.78
Outstanding at September 28, 2021	2,128	$	45.08

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 2021 and 2020 was $51.95 and $24.00, respectively. The fair value of shares that vested during the thirteen weeks and thirty-nine weeks ended September 28, 2021 was $2.1 million and $13.3 million, respectively. The fair value of shares that vested during the thirteen weeks and thirty-nine weeks ended September 29, 2020 was $1.8 million and $14.2 million, respectively. As of September 28, 2021, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $ 45.8 million, which we expect to recognize over a weighted-average period of approximately 3.0 years.