SHARE-BASED COMPENSATION (Block)

6 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments Abstract

Disclosure Of Compensation Related Costs Share Based Payments Text Block

8. SHARE-BASED COMPENSATION

Under the Entercom Equity Compensation Plan (the “Plan”), the Company is authorized to issue share-based compensation awards to key employees, directors and consultants.

Restricted Stock Units (“RSUs”) Activity

The following is a summary of the changes in RSUs under the Plan during the current period:

			Number			Weighted	Aggregate
			of	Weighted		Average	Intrinsic
			Restricted	Average		Remaining	Value as of
			Stock	Purchase		Contractual	June 30,
	Period Ended		Units	Price		Term (Years)	2018
RSUs outstanding as of:	December 31, 2017		4,285,290
RSUs awarded			1,279,660
RSUs released			(1,485,340)
RSUs forfeited			(238,606)
RSUs outstanding as of:	June 30, 2018		3,841,004	$	-	1.6	$	28,811,490
RSUs vested and expected
to vest as of:	June 30, 2018		3,840,828	$	-	1.6	$	28,806,210
RSUs exercisable (vested and
deferred) as of:	June 30, 2018		48,880	$	-	-	$	366,600
Weighted average remaining
recognition period in years			2.4
Unamortized compensation
expense		$	30,158,160

RSUs With Service and Market Conditions

The Company issued RSUs with service and market conditions that are included in the table above. These shares vest if: (i) the Company’s stock achieves certain shareholder performance targets over a defined measurement period; and (ii) the employee fulfills a minimum service period. The compensation expense is recognized even if the market conditions are not satisfied and are only reversed in the event the service period is not met,as all of the conditions need to be satisfied. These RSUs are amortized over the longest of the explicit, implicit or derived service periods, which range from approximately one to three years.

The following table presents the changes inoutstanding RSUs with market conditions:

		Six Months		Year
		Ended		Ended
		June 30,		December 31,
		2018		2017
		(amounts in thousands, except per share data)
Reconciliation of RSUs with Service And Market Conditions
	Beginning of period balance		650		630
	Number of RSUs granted		-		70
	Number of RSUs forfeited		(110)		-
	Number of RSUs vested		(314)		(50)
	End of period balance		226		650
	Weighted average fair value of RSUs granted
	with market conditions	$	-	$	9.81

The fair value of RSUs with service conditions is estimated using the Company’s closing stock price on the date of the grant. To determine the fair value of RSUs with service and market conditions, the Company used the Monte Carlo simulation lattice model. The Company’s determination of the fair value was based on the number of shares granted, the Company’s stock price on the date of grant and certain assumptions regarding a number of highly complex and subjective variables. If other reasonable assumptions were used, the results could differ.

The specific assumptions used for these valuations are as follows:

	Six Months			Year
	Ended			Ended
	June 30,			December 31,
	2018		2017
Expected Volatility Term Structure (1)		-		54%
Risk-Free Interest Rate (2)		-		1.8%
Annual Dividend Payment Per Share (Constant) (3)	$	-	$	3.3%

Option Activity

The following table provides summary information related to the exercise of stock options:

	Six Months Ended June 30,
Option Exercise Data	2018		2017
	(amounts in thousands)
Intrinsic value of options exercised	$	405	$	58
Tax benefit from options exercised (1)	$	107	$	23
Cash received from exercise price of options exercised	$	65	$	22

The following table presents the option activity during the current period under the Plan:

						Weighted	Intrinsic
				Weighted		Average	Value
				Average		Remaining	as of
		Number of		Exercise		Contractual	June 30,
	Period Ended	Options		Price		Term (Years)	2018
Options outstanding as of:	December 31, 2017		883,347	$	8.38
Options granted			-		-
Options exercised			(48,500)		1.34
Options forfeited			-		-
Options expired			(11,500)		11.72
Options outstanding as of:	June 30, 2018		823,347	$	8.75	1.8	$	1,573,787
Options vested and expected to
vest as of:	June 30, 2018		823,347	$	8.75	1.8	$	1,573,787
Options vested and exercisable as of:	June 30, 2018		823,347	$	8.75	1.8	$	1,573,787
Weighted average remaining
recognition period in years			-
Unamortized compensation expense		$	-

The following table summarizes significant ranges of outstanding and exercisable options as of the current period:

				Options Outstanding				Options Exercisable
				Number of	Weighted			Number of
				Options	Average	Weighted		Options	Weighted
Range of				Outstanding	Remaining	Average		Exercisable	Average
Exercise Prices				June 30,	Contractual	Exercise		June 30,	Exercise
From		To		2018	Life	Price		2018	Price
$	1.34	$	1.34	251,937	0.6	$	1.34	251,937	$	1.34
$	2.02	$	13.98	571,410	2.3	$	12.02	571,410	$	12.02
$	1.34	$	13.98	823,347	1.8	$	8.75	823,347	$	8.75

Recognized Non-Cash Stock-Based Compensation Expense

The following non-cash stock-based compensation expense, which is related primarily to RSUs, is included in each of the respective line items in the Company’s statement of operations:

	Six Months Ended
	June 30,
	2018		2017
		(amounts in thousands)
Station operating expenses	$	3,643	$	577
Corporate general and administrative expenses		4,010		2,494
Stock-based compensation expense included in operating expenses		7,653		3,071
Income tax benefit (1)		1,598		1,004
After-tax stock-based compensation expense	$	6,055	$	2,067

	Three Months Ended
	June 30,
	2018		2017
	(amounts in thousands)
Station operating expenses	$	1,680	$	372
Corporate general and administrative expenses		2,050		1,105
Stock-based compensation expense included in operating expenses		3,730		1,477
Income tax benefit (1)		779		495
After-tax stock-based compensation expense	$	2,951	$	982