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STOCK-BASED COMPENSATION
6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed consolidated statements of income for the periods indicated:
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
Cost of revenues (exclusive of depreciation and amortization)$11,261 $8,958 $22,378 $12,942 
Selling, general and administrative expenses12,637 10,481 26,073 18,378 
Total$23,898 $19,439 $48,451 $31,320 


Stock Options
Stock option activity under the Company’s plans is set forth below:
 Number of
Options 
Weighted Average
Exercise Price 
Aggregate
Intrinsic Value 
Weighted Average
Remaining Contractual Term (in years)
Options outstanding at January 1, 2021
2,772 $61.71 
Options granted88 $395.53 
Options exercised(328)$47.76 
Options forfeited/cancelled(5)$227.25 
Options outstanding at June 30, 2021
2,527 $74.78 $1,102,051 4.1
Options vested and exercisable as of June 30, 2021
2,217 $52.50 $1,016,268 3.5
Options expected to vest as of June 30, 2021
286 $232.06 $79,898 8.6
As of June 30, 2021, $22.3 million of total remaining unrecognized stock-based compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 3.0 years.
Restricted Stock and Restricted Stock Units
Service-Based Awards
The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the six months ended June 30, 2021:
Equity-Classified
 Restricted Stock
Equity-Classified
Equity-Settled
Restricted Stock Units
Liability-Classified
Cash-Settled
Restricted Stock Units
 
Number of
Shares 
Weighted Average Grant Date
Fair Value Per Share 
Number of
Shares 
Weighted Average Grant Date
Fair Value Per Share 
Number of
Shares 
Weighted Average Grant Date
Fair Value Per Share 
Unvested service-based awards outstanding at January 1, 2021
9 $167.18 686 $162.15 175 $141.16 
Awards granted— $— 200 $397.62 26 $387.84 
Awards vested— $— (268)$131.85 (83)$116.11 
Awards forfeited/cancelled— $— (18)$228.28 (2)$221.69 
Unvested service-based awards outstanding at June 30, 2021
9 $167.18 600 $252.09 116 $213.00 
As of June 30, 2021, $0.6 million of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 1.2 years.
As of June 30, 2021, $121.8 million of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock units (“RSUs”), net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 3.0 years.
During the second quarter of 2021, the Company granted 17 thousand service-based equity-classified RSUs in connection with the PolSource acquisition and 11 thousand service-based equity-classified RSUs in connection with the Other 2021 acquisitions. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions.
As of June 30, 2021, $41.0 million of total remaining unrecognized stock-based compensation cost related to service-based liability-classified cash-settled RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.5 years.
The liability associated with the service-based liability-classified RSUs as of June 30, 2021 and December 31, 2020, was $13.3 million and $26.8 million, respectively, and was classified as Accrued compensation and benefits expenses in the condensed consolidated balance sheets.
Performance-Based Awards
The table below summarizes activity related to the Company’s equity-classified performance-based awards for the six months ended June 30, 2021:
Equity-Classified
Equity-Settled
Restricted Stock
Equity-Classified
Equity-Settled
Restricted Stock Units
 
Number of
Shares 
Weighted Average Grant Date
Fair Value Per Share 
Number of
Shares 
Weighted Average Grant Date
Fair Value Per Share 
Unvested performance-based awards outstanding at January 1, 2021
9 $165.87 21 $227.16 
Awards granted— $— $399.99 
Unvested performance-based awards outstanding at June 30, 2021
9 $165.87 22 $233.43 
As of June 30, 2021, $0.8 million of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 2.2 years.
As of June 30, 2021, $2.8 million of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified RSUs is expected to be recognized over the weighted-average remaining requisite service period of 2.2 years.
During the second quarter of 2021, in connection with the PolSource acquisition, the Company granted 1 thousand performance-based equity-settled RSUs. Vesting of these performance-based equity-settled RSUs is dependent on continued service and achievement of certain revenue, earnings and operational targets.
Additionally, during the second quarter of 2021, the Company issued certain performance-based equity-settled RSUs with undetermined conditions for future vesting, which are not deemed granted and outstanding for accounting purposes, and therefore they have been excluded from the awards granted disclosure and recognized expense for the period presented. The Company issued 5 thousand of such performance-based equity-settled RSUs in connection with the PolSource acquisition and 1 thousand of such performance-based equity-settled RSUs in connection with the Other 2021 Acquisitions. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions.
As of June 30, 2021, the Company has committed to issuing 17 thousand RSUs to employees of PolSource and 1 thousand RSUs as well as future RSU awards valued at $3.8 million to employees of Other 2021 Acquisitions at various dates over the next 12 months. As of June 30, 2021, these awards were not considered granted for accounting purposes.