Stock-Based Compensation

6 Months Ended

Jun. 30, 2015

Stock-Based Compensation [Abstract]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Stock-Based Compensation

The Company recorded $1.8 million and $1.8 million of stock-based compensation expense for the three months ended June 30, 2015 and 2014, respectively. The Company recorded $3.7 million and $4.1 million of stock-based compensation expense for the six months ended June 30, 2015 and 2014, respectively.  The Company utilized the Black-Scholes valuation model for estimating the fair value of the stock compensation granted, with the following weighted-average assumptions for options granted in the six months ended June 30, 2015 and 2014:

	Expected Volatility		Risk-free Interest Rate		Expected Term	Dividend Rate
June 30, 2015:
Employees	63	%	1.2	%	4	—	%
Officers and non-employee directors	81	%	1.8	%	8	—	%
June 30, 2014:
Employees	66	%	1.1	%	4	—	%
Officers and non-employee directors	80	%	2.3	%	8	—	%

The following is a summary of option activity under Lexicon’s stock-based compensation plans for the six months ended June 30, 2015:

	Options		Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2014	3,372		$	14.98
Granted	1,091		6.39
Expired	(167	)	28.55
Forfeited	(62	)	9.53
Outstanding at June 30, 2015	4,234		12.31
Exercisable at June 30, 2015	2,516		$	14.69

During the six months ended June 30, 2015, Lexicon also granted its employees annual restricted stock units. These restricted stock units vest in four annual installments. The following is a summary of restricted stock units activity under Lexicon’s stock-based compensation plans for the six months ended June 30, 2015:

	Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2014	447		$	12.88
Granted	452		6.23
Vested	(167	)	12.91
Forfeited	(56	)	9.70
Nonvested at June 30, 2015	676		$	8.69

During the six months ended June 30, 2015, Lexicon granted its non-employee directors 21,360 shares of restricted stock awards. The restricted stock awards had a weighted average grant date fair value of $7.49 per share and vested immediately.