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Stock-Based Compensation
9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
We currently grant restricted equity awards to employees, directors and non-employee consultants under our 2010 Equity Incentive Plan. Additionally, through our 2010 Employee Stock Purchase Plan, employees are able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans.
Restricted Stock Units
The following table summarizes restricted stock units subject to only service conditions granted under our 2010 Equity Incentive Plan:
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
(In thousands, except per share data)
Restricted stock units granted96 52 1,580 140 
Weighted-average grant-date fair value$51.96 $35.41 $30.45 $48.39 
Performance-Based Restricted Stock Units
We grant performance-based restricted stock units to certain employees which are subject to the attainment of pre-established annual performance targets. The actual number of shares subject to the award is determined at the end of the annual performance period and may range from 0% to 200% of the target shares granted. These awards generally contain an additional service component after each annual performance period is concluded and the unvested balance of the shares determined at the end of the annual performance period will vest over the remaining requisite service period. Compensation expense related to these awards is recognized using the accelerated attribution method over the vesting period (generally, a period of four years) based on the fair value of the closing market price of our Class A common stock on the date of the grant and the estimated performance that is expected to be achieved.
Note 12—Stock-Based Compensation (continued)
The following table summarizes the performance-based restricted stock units granted under our 2010 Equity Incentive Plan:
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
(In thousands, except per share data)
Performance-based restricted stock units granted (1)
53 — 615 883 
Weighted-average grant-date fair value$51.25 $— $34.82 $50.15 

(1)Performance awards granted also reflects, as applicable, the issuance of any shares awarded in excess of their original target amount based on the Compensation Committee's certification of completed performance years. The grant date fair value for these awards are based on the grant price at the time of the original award.
Performance-Based Stock Options
In connection with the recent hiring of certain executive officers, we granted performance-based stock options with a seven-year term that vest subject to continued service over three years, and upon our company achieving certain stock trading prices within a five-year period. Compensation expense related to these awards is recognized over the greater of the explicit service period or a derived implicit period based on when the performance targets are expected to be achieved. The grant date fair value is determined through the use of a Monte Carlo simulation and is not subsequently re-measured.
The following table summarizes the performance-based stock options granted to date:
 Nine Months Ended September 30,
 2020
(In thousands, except per share data)
Performance-based stock options granted2,250 
Weighted-average exercise price$31.30 
Weighted-average grant-date fair value$14.57 
The estimated grant-date fair value of each performance option grant was based on the following weighted-average assumptions:
 Nine Months Ended September 30,
 2020
Risk-free interest rate0.63 %
Expected term (in years)3.30
Expected dividends 
Expected volatility53.8 %
The total stock-based compensation expense recognized was $11.8 million and $6.9 million for the three months ended September 30, 2020 and 2019, respectively, and $36.8 million and $30.1 million for the nine months ended September 30, 2020 and 2019, respectively. Total stock-based compensation expense includes amounts related to each of the awards discussed above and purchases made under our 2010 Employee Stock Purchase Plan, and reflects, as applicable, accelerated expense recognition associated with our retirement policy.
Under our retirement policy, following a qualified retirement, any service-based requirement for unvested stock awards held by the eligible employee is eliminated. Accordingly, the related compensation expense is recognized immediately for qualifying awards granted to eligible employees, or in the case of ineligible employees who later become eligible under the retirement policy, over the period from the grant date to the date a qualifying retirement is achieved, if earlier than the standard vesting dates. Performance-based restricted stock units issued to retirement eligible employees remain subject to the stock awards’ annual performance targets and the expense will be adjusted accordingly based expected achievement.