Shake Shack 2015 Annual Report Download - page 53

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Table of Contents
SHAKE SHACK INC.
NOTES TO BALANCE SHEETS
(dollar amounts in thousands, except share and per share amounts)
On February 4, 2015, SSE Holdings paid a distribution in the amount of $11,125 to certain of the Original SSE Equity Owners. This distribution triggered a tax basis increase subject to
the provisions of the Tax Receivable Agreement. We will recognize a deferred tax asset in the amount of $6,006 and a corresponding liability of $5,105, representing 85% of the tax
benefits due to the Continuing SSE Equity Owners.
Equity-Based Compensation
On January 29, 2015, the Corporation granted 2,622,281
stock options to our directors and certain employees under the Shake Shack Inc. 2015 Incentive Award Plan. The stock options
were granted with an exercise price of $21.00 per share and vest equally over five years. Additionally, we issued 339,306 shares of Class A common stock in settlement of outstanding
unit appreciation rights under the SSE Holdings Unit Appreciation Rights Plan.
52