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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2016
Stock-Based Compensation [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
Stock-Based Compensation

The Company recorded $1.9 million and $1.7 million of stock-based compensation expense for the three months ended September 30, 2016 and 2015, respectively. The Company recorded $5.7 million and $5.4 million of stock-based compensation expense for the nine months ended September 30, 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 nine months ended September 30, 2016 and 2015:
 
 
Expected Volatility
 
Risk-free Interest Rate
 
Expected Term
 
Dividend
Rate
September 30, 2016:
 
 
 
 
 
 
 
 
Employees
 
63
%
 
1.1
%
 
4
 
—
%
Officers and non-employee directors
 
83
%
 
1.6
%
 
8
 
—
%
September 30, 2015:
 
 
 
 
 
 
 
 
Employees
 
63
%
 
1.2
%
 
4
 
—
%
Officers and non-employee directors
 
81
%
 
1.8
%
 
8
 
—
%


The following is a summary of option activity under Lexicon’s stock-based compensation plans for the nine months ended September 30, 2016:
 
 
 
Options
 
Weighted Average Exercise Price
 
 
(in thousands)
 
 
Outstanding at December 31, 2015
 
4,217

 
$
12.35

Granted
 
1,302

 
10.06

Exercised
 
(236
)
 
12.05

Expired
 
(167
)
 
27.29

Forfeited
 
(33
)
 
11.24

Outstanding at September 30, 2016
 
5,083

 
11.30

Exercisable at September 30, 2016
 
2,874

 
$
12.80



During the nine months ended September 30, 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 nine months ended September 30, 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
 
(35
)
 
10.77

Nonvested at September 30, 2016
 
892

 
$
8.12


    
During the nine months ended September 30, 2016, Lexicon granted its non-employee directors 11,456 shares of restricted stock awards. The restricted stock awards had a weighted average grant date fair value of $13.96 per share and vested immediately.