Stock-Based Plans

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Plans

Stock-Based Plans

Stock Option Activity

The following table summarizes stock option activity for the three months ended March 31, 2016:  

	Options
	(In millions)
Outstanding as of January 1, 2016	7
Granted and assumed	—
Exercised	—
Forfeited/expired/canceled	(1	)
Outstanding as of March 31, 2016	6

Restricted Stock Unit Activity

The following table summarizes restricted stock unit (“RSU”) activity for the three months ended March 31, 2016:  

	Units
	(In millions)
Outstanding as of January 1, 2016	36
Awarded and assumed	1
Vested	(1	)
Forfeited	—
Outstanding as of March 31, 2016	36

The weighted average grant date fair value for RSUs awarded during the period was $23.31 per share.

Stock-Based Compensation Expense

The impact on our results of operations of recording stock-based compensation expense for the three months ended March 31, 2016 and 2015 was as follows:

	Three Months Ended March 31,
	2016		2015
	(In millions)
Cost of net revenues	$	7	$	8
Sales and marketing	21		24
Product development	31		29
General and administrative	29		32
Total stock-based compensation expense	$	88	$	93
Capitalized in product development	$	3	$	3

Stock Option Valuation Assumptions

We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. The following weighted average assumptions were used for the three months ended March 31, 2015:  

	Three Months Ended March 31,
	2015
Risk-free interest rate	1.46	%
Expected life (in years)	4.4
Dividend yield	—	%
Expected volatility	27	%

An immaterial amount of stock options were granted during the three months ended March 31, 2016.

Our computation of expected volatility is based on a combination of historical and market-based implied volatility from traded options on our common stock. Our computation of expected life is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.