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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2015
Stock-Based Compensation [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
Stock-Based Compensation

The Company recorded $1.7 million and $1.5 million of stock-based compensation expense for the three months ended September 30, 2015 and 2014, respectively. The Company recorded $5.4 million and $5.6 million of stock-based compensation expense for the nine months ended September 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 nine months ended September 30, 2015 and 2014:
 
 
Expected Volatility
 
Risk-free Interest Rate
 
Expected Term
 
Dividend
Rate
September 30, 2015:
 
 
 
 
 
 
 
 
Employees
 
63
%
 
1.2
%
 
4
 
—
%
Officers and non-employee directors
 
81
%
 
1.8
%
 
8
 
—
%
September 30, 2014:
 
 
 
 
 
 
 
 
Employees
 
66
%
 
1.2
%
 
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 nine months ended September 30, 2015:
 
 
 
Options
 
Weighted Average Exercise Price
 
 
(in thousands)
 
 
Outstanding at December 31, 2014
 
3,372

 
$
14.98

Granted
 
1,131

 
6.48

Exercised
 
(9
)
 
12.16

Expired
 
(185
)
 
27.47

Forfeited
 
(67
)
 
9.46

Outstanding at September 30, 2015
 
4,242

 
12.26

Exercisable at September 30, 2015
 
2,604

 
$
14.59



During the nine months ended September 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 nine months ended September 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
 
(67
)
 
9.56

Nonvested at September 30, 2015
 
665

 
$
8.69



During the nine months ended September 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.