Note 5—Equity and Stock-based Compensation

On May 25, 2016, the Company’s Board of Directors approved a two-for-one stock split to be effected in the form of a stock dividend. The record date for the stock split was June 7, 2016 and the payment date was June 24, 2016. All share and per share amounts (other than for the Company’s Class A non-voting common stock) have been retroactively restated for all periods presented to reflect the stock split.

At the Company’s annual meeting of shareholders held on May 25, 2016, the Company’s shareholders approved the Company’s Amended and Restated 2014 Stock Incentive Plan (the “Amended 2014 Plan”). The primary changes to the Amended 2014 Plan are to (i) increase the shares available for equity awards by 24 million shares and (ii) add flexibility to use this plan as the Company’s only equity plan by authorizing the issuance of full-value awards (that is, restricted stock and restricted stock units) and expanding the class of participants to include non-employee directors. Following the approval of the 2014 Amended Plan, the Company will no longer make grants under the Company’s 2008 Stock Incentive Plan or the Company’s 2006 Equity Incentive Plan.

Total stock options, SARs, RSUs and RSAs. The amount of stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Comprehensive Income (Loss) for three and nine months ended September 30, 2016 was as follows (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Condensed Consolidated Statements of Comprehensive Income (Loss) Classification	2016		2015		2016		2015
Cost of software-enabled services	$	2,732	$	1,846	$	7,916	$	4,976
Cost of maintenance and term licenses		605		589		2,116		791
Cost of recurring revenues		3,337		2,435		10,032		5,767
Cost of professional services		493		530		1,736		855
Cost of non-recurring revenues		493		530		1,736		855
Total cost of revenues		3,830		2,965		11,768		6,622
Selling and marketing		2,521		9,936		8,966		11,423
Research and development		2,004		5,464		6,402		6,359
General and administrative		4,134		4,756		13,266		7,031
Total operating expenses		8,659		20,156		28,634		24,813
Total stock-based compensation expense	$	12,489	$	23,121	$	40,402	$	31,435

The following table summarizes stock option and SAR activity as of and for the nine months ended September 30, 2016:

	Shares
Outstanding at December 31, 2015		30,278,364
Granted		1,454,300
Cancelled/forfeited		(1,391,958	)
Exercised		(5,762,429	)
Outstanding at September 30, 2016		24,578,277

The following table summarizes RSU activity as of and for the nine months ended September 30, 2016:

	Shares
Outstanding at December 31, 2015		957,452
Granted		-
Cancelled/forfeited		(67,266	)
Vested		(501,906	)
Outstanding at September 30, 2016		388,280

The Company recorded $45.0 million and $11.1 million of income tax benefits related to the exercise of stock options during the nine months ended September 30, 2016 and 2015, respectively. These amounts were recorded entirely to Additional paid-in capital on the Company’s Condensed Consolidated Balance Sheets.