Employee Incentive Plans

3 Months Ended

Mar. 31, 2018

The Company’s equity incentive plans provide for granting stock options and restricted stock units (RSUs) to employees, consultants, officers and directors.

Stock-based compensation expense was as follows for the periods presented:



	Three Months Ended March 31,
	2018		2017
Stock options	$	2,567	$	4,345
RSUs	14,793		14,634
ESPP	441		385
Stock issued related to acquisition	—		134
Total stock-based compensation expense	$	17,801	$	19,498

The following table presents the Company’s stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations:



	Three Months Ended March 31,
	2018		2017
Sales and marketing	$	1,860	$	2,299
Origination and servicing	1,072		1,416
Engineering and product development	5,279		6,588
Other general and administrative	9,590		9,195
Total stock-based compensation expense	$	17,801	$	19,498

The Company capitalized $2.2 million and $2.5 million of stock-based compensation expense associated with developing software for internal use during the first quarters of 2018 and 2017, respectively.

Performance-based Restricted Stock Units

During the first quarter of 2018, the Company granted its chief executive officer and chief financial officer performance-based restricted stock units (PBRSUs). PBRSUs are equity awards that may be earned based on achieving certain pre-established performance metrics over a specific performance period. Depending on the probability of achieving the pre-established performance targets, the PBRSUs issued could range from 0% to 200% of the target amount. PBRSUs granted under the Company’s equity incentive plans generally have a one-year performance period with one-half of the grant vesting over one-year following the completion of the performance period and the remaining one-half vesting over two-years following the completion of the performance period. Over the performance period, the number of PBRSUs that may be earned and the related stock-based compensation expense that is recognized is adjusted upward or downward based upon the probability of achieving the pre-established performance targets against the performance metrics.