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. On April 4, 2019, our Board adopted The Cheesecake Factory Incorporated Stock Incentive Plan. This plan was approved by our stockholders at our annual meeting held on May 30, 2019. The maximum number of shares of common stock available for grant under this plan is 4.8 million shares plus 1.8 million shares, which, as of May 30, 2019, were available for issuance under our 2010 Stock Incentive Plan plus 1.9 million shares which may become available for issuance under The Cheesecake Factory Incorporated Stock Incentive Plan due to forfeiture or lapse of awards under our 2010 Stock Incentive Plan following May 30, 2019.

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 and other assets on the condensed consolidated balance sheets.

Stock Options

We did not issue any stock options during the second quarter of fiscal 2019. The weighted average fair value at the grant date for options issued during the second quarter of fiscal 2018 was $12.81 per share. The fair value of options was estimated utilizing the Black-Scholes valuation model with the following weighted average assumptions for the second quarter of fiscal 2018: (a) an expected option term of 6.9, (b) expected stock price volatility of 26.4%, (c) a risk-free interest rate of 2.8% and (d) a dividend yield on our stock of 2.2%.

Stock option activity during the twenty-six weeks ended July 2, 2019 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 1, 2019	1,799	$	45.03	4.1	$	5,606
Granted	300		46.03
Exercised	(208)		29.83
Forfeited or cancelled	—		—
Outstanding at July 2, 2019	1,891	$	46.86	4.6	$	2,599

Exercisable at July 2, 2019	1,055	$	45.24	3.1	$	2,599

(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 twenty-six weeks ended July 2, 2019 was $0.2 million and $3.6 million, respectively. The total intrinsic value of options exercised during the thirteen and twenty-six weeks ended July 3, 2018 was $4.3 million and $4.7 million, respectively. As of July 2, 2019, total unrecognized stock-based compensation expense related to unvested stock options was $8.4 million, which we expect to recognize over a weighted average period of approximately 4.5 years.

Restricted Shares and Restricted Share Units

Restricted share and restricted share unit activity during the twenty-six weeks ended July 2, 2019 was as follows:


		Weighted
		Average
	Shares	Fair Value
	(In thousands)	(Per share)
Outstanding at January 1, 2019	1,702	$	48.08
Granted	427		45.89
Vested	(272)		45.70
Forfeited	(54)		48.76
Outstanding at July 2, 2019	1,803	$	47.89

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 2019 and fiscal 2018 was $45.15 and $51.88, 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. The fair value of shares that vested during the thirteen weeks and twenty-six weeks ended July 3, 2018 was $1.4 million and $11.8 million, respectively. As of July 2, 2019, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $43.7 million, which we expect to recognize over a weighted average period of approximately 3.2 years.