Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

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 $2.0 million of stock-based compensation expense for the three months ended March 31, 2016 and 2015, 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 three months ended March 31, 2016 and 2015:

	Expected Volatility		Risk-free Interest Rate		Expected Term	Dividend Rate
March 31, 2016:
Employees	63	%	1.1	%	4	—	%
Officers and non-employee directors	83	%	1.6	%	8	—	%
March 31, 2015:
Employees	63	%	1.2	%	4	—	%
Officers and non-employee directors	81	%	1.9	%	8	—	%

The following is a summary of option activity under Lexicon’s stock-based compensation plans for the three months ended March 31, 2016:

	Options		Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2015	4,217		$	12.35
Granted	934		8.47
Exercised	(7	)	11.59
Expired	(157	)	27.03
Forfeited	(9	)	8.49
Outstanding at March 31, 2016	4,978		11.17
Exercisable at March 31, 2016	2,829		$	13.12

During the three months ended March 31, 2016, 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 three months ended March 31, 2016:

	Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2015	637		$	8.74
Granted	496		8.20
Vested	(206	)	9.75
Forfeited	(31	)	11.06
Nonvested at March 31, 2016	896		$	8.12