Employee Retirement and Postretirement Benefits

6 Months Ended

Jun. 30, 2019

Employee Retirement and Postretirement Benefits

16.	Employee Retirement and Postretirement Benefits

Stock-Based Compensation—

As of June 30, 2019, we maintained three stock-based employee compensation plans (“Stock Plans”). See Note 12, “Stock-Based Compensation,” in our 2018

10-K

for further information regarding these plans. Most of our equity grants are awarded on an annual basis.

For the six month period ended June 30, 2019, options to purchase 1,437,988 shares of common stock (of which 148,500 are options that contain a market condition and 50,000 contain a performance condition, in addition to the time-based vesting requirements) were granted, no options to purchase shares of common stock were exercised, options to purchase 456,431 (of which 278,146 options contain a market condition) shares of common stock were forfeited, and options to purchase 20,675 shares of common stock expired.

For the six month period ended June 30, 2019, 2,038,988 Restricted Stock Units (“RSUs”) (of which 86,000 are RSUs that contain a market condition and 50,000 contain a performance condition, in addition to the time-based vesting requirements) were granted, 447,646 RSUs vested and 379,521 RSUs (of which 109,760 contained a market condition) were forfeited.

For the six month period ended June 30, 2019, 64,995 restricted shares vested. These shares are deemed issued as of the date of grant, but not outstanding until they vest.

For the six month period ended June 30, 2019,

113,744

Deferred Stock Units were granted and vested.

For the six month period ended June 30, 2019, 157,158 shares of common stock were issued under the employee stock purchase plan.

The following is a summary of our stock-based compensation expense by operating expense line in the unaudited condensed consolidated statements of operations

(in thousands)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Cost of service revenue	$	374	$	447	$	802	$	881
Cost of equipment revenue		80		59		151		113
Engineering, design and development		780		783		1,554		1,693
Sales and marketing		967		1,226		1,937		2,308
General and administrative		2,117		1,698		4,201		3,604
Total stock-based compensation expense	$	4,318	$	4,213	$	8,645	$	8,599

401(k)

Plan

—Under our 401(k) plan, all employees who are eligible to participate are entitled to make

tax-deferred

contributions, subject to Internal Revenue Service limitations. We match 100% of the employee’s first 4% of contributions made, subject to annual limitations. Our matching contributions were $1.4 million and $2.6 million, respectively, during the three and six month periods ended June 30, 2019, and $1.3 million and $2.6 million, respectively, for the prior-year periods.