XML 39 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
A summary of the general terms of stock options and RSUs at December 31, 2015 was as follows: 
Number of shares authorized for awards
12,040,839

Options and RSUs outstanding
6,403,859

Options and RSUs expected to vest
5,956,538

Options and RSUs available for grant
5,285,862


The following activity occurred under the Company’s stock incentive plans:

Options

Weighted average exercise price

Intrinsic value
(in thousands)

Weighted average remaining contractual term (in years)
Stock options:







Outstanding December 31, 2014
4,343,825

 
$
14.21

 

 

Granted
1,794,763

 
$
13.34

 

 

Forfeited
(378,509
)
 
$
16.97

 

 

Expired
(115,745
)
 
$
17.49

 

 

Exercised
(248,574
)
 
$
9.69

 

 

Outstanding December 31, 2015
5,395,760

 
$
13.87

 
$
1,512

 
4.3
Exercisable December 31, 2015
3,004,907

 
$
13.00

 
$
1,512

 
3.0
Vested and expected to vest after December 31, 2015
5,093,188

 
$
13.85

 
$
1,512

 
4.2

Stock units

Weighted average grant date fair value

Intrinsic value
(in thousands)

Weighted average remaining contractual term (in years)
RSUs:







Outstanding December 31, 2014
753,422

 
$
17.88

 

 

Granted
837,419

 
$
13.67

 

 

Forfeited
(200,676
)
 
$
16.55

 

 

Vested
(382,066
)
 
$
17.65

 

 

Outstanding December 31, 2015
1,008,099

 
$
14.73

 
$
9,879

 
1.0
Expected to vest after December 31, 2015
863,350

 
$
14.77

 
$
8,461

 
0.9

Supplemental information is presented below: 
 
Years ended December 31,
 
2015
 
2014
 
2013
Stock options:
 
 
 
 
 
Weighted average grant date fair value per share granted
$
3.65

 
$
5.67

 
$
5.05

Total intrinsic value of options exercised (in thousands)
$
1,072

 
$
3,600

 
$
2,626

Total fair value of options vested (in thousands)
$
4,416

 
$
4,000

 
$
2,410

RSUs:
 
 
 
 
 
Weighted average grant date fair value per unit granted
$
13.67

 
$
18.44

 
$
18.86

Total intrinsic value of units vested (in thousands)
$
5,437

 
$
8,315

 
$
7,986

Total fair value of units vested (in thousands)
$
6,742

 
$
6,560

 
$
5,163


The Company included the following amounts for stock-based compensation expense, which related to stock options, RSUs, and the ESPP, in the consolidated statements of comprehensive income (in thousands):
 
Years ended December 31,
 
2015
 
2014
 
2013
Cost of revenue
$
96

 
$
254

 
$
459

Engineering and technology
484

 
516

 
567

Sales and marketing
771

 
829

 
671

General and administrative
7,343

 
7,095

 
6,802

Total in continuing operations
8,694

 
8,694

 
8,499

Discontinued operations
4,402

 
3,190

 
3,028

Total
$
13,096

 
$
11,884

 
$
11,527

Total excluded and capitalized as part of internal-use software
$
135

 
$
106

 
$
115


In May 2012, the Company granted stock options to certain Blucora employees who performed acquisition-related services. The vesting of such options were predicated on completing “qualified acquisitions” under the terms of the options. The completion of the HSW acquisition on May 30, 2014 and the Monoprice acquisition on August 22, 2013 constituted qualified acquisitions under such terms, resulting in charges of $0.3 million and $0.5 million to stock-based compensation expense (reflected in “General and administrative” expense) in 2014 and 2013, respectively.
To estimate stock-based compensation expense, the Company used the Black-Scholes-Merton valuation method with the following assumptions for stock options granted:
 
Years ended December 31,
 
2015
 
2014
 
2013
Risk-free interest rate
0.21% - 1.33%

 
0.11% - 1.31%

 
0.25% - 1.06%

Expected dividend yield
0
%
 
0
%
 
0
%
Expected volatility
34% - 40%

 
35% - 43%

 
40% - 46%

Expected life
3.0 years

 
3.0 years

 
3.2 years

The risk-free interest rate was based on the implied yield available on U.S. Treasury issues with an equivalent remaining term. The Company last paid a dividend in 2008 but does not expect to pay recurring dividends. The expected volatility was based on historical volatility of the Company’s stock for the related expected life of the award. The expected life of the award was based on historical experience, including historical post-vesting termination behavior.
As of December 31, 2015, total unrecognized stock-based compensation expense related to unvested stock awards is as follows:
 
Expense
(in thousands)
 
Weighted average period
over which to be recognized
(in years)
Stock options
$
2,566

 
1.2
RSUs
2,753

 
1.2
Total for continuing operations
$
5,319

 
1.2