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Share-Based Compensation
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation SHARE-BASED COMPENSATION

The Company may grant equity incentive awards to employees, consultants and non-employee directors under the Five Point Holdings, LLC 2016 Incentive Award Plan (the “Incentive Award Plan”). The Incentive Award Plan provides for the grant of share options, restricted shares, restricted share units, performance awards (which include, but are not limited to, cash bonuses), distribution equivalent awards, deferred share awards, share payment awards, share appreciation rights, other incentive awards (which include, but are not limited to, LTIP Unit awards (as defined in the Incentive Award Plan) and performance share awards. The Incentive Award Plan authorized the issuance of up to 8,500,822 Class A common shares of the Holding Company. As of December 31, 2018, there were 4,077,493 remaining Class A common shares available for future issuance under the Incentive Award Plan.
Under the Incentive Award Plan, the Company has granted restricted share units (“RSUs”) and restricted share awards either fully vested or with service conditions. Awards with a service condition generally vest over a three-year period or in the case of non-employee directors over one year. Restricted share awards entitle the holders to non-forfeitable distributions and to vote the underlying Class A common share during the restricted period.
The Company estimates the fair value of restricted share awards with a service condition based on the closing market price of the Company’s Class A common shares on the award’s grant date. Prior to the Company’s IPO, the Company measured the fair value of RSUs and restricted share awards based on the estimated fair value of the Company’s underlying Class A common shares determined using a discounted cash flow analysis. The inputs utilized in the Company’s estimate were selected by the Company based on information available to the Company, including relevant information obtained after the measurement date, as to the assumptions that market participants would make at the measurement date.
During the years ended December 31, 2018, 2017 and 2016, the Company reacquired vested RSUs and restricted share awards from employees for $5.1 million, $6.5 million and $0.4 million, respectively, for the purpose of settling tax withholding obligations. The reacquisition cost is based on the fair value of the Company’s Class A common shares on the date the tax obligation is incurred.
The following table summarizes share-based equity compensation activity for the years ended December 31, 2018, 2017 and 2016:
 
Share-Based Awards
(in thousands)
 
Weighted-
Average Grant
Date Fair Value
Nonvested at January 1, 2016
—

 
$
—

Granted
2,350

 
$
19.81

Vested
(1,045
)
 
$
19.62

Nonvested at December 31, 2016
1,305

 
$
20.00

Granted
453

 
$
15.52

Vested
(673
)
 
$
19.26

Nonvested at December 31, 2017
1,085

 
$
18.57

Granted
1,724

 
$
14.81

Forfeited
(105
)
 
$
14.83

Vested
(811
)
 
$
18.76

Nonvested at December 31, 2018
1,893

 
$
15.27



Share-based compensation expense was $11.4 million, $18.5 million and $27.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Share-based compensation expense is included in selling, general, and administrative expenses in the accompanying consolidated statements of operations. Approximately $18.2 million of total unrecognized compensation cost related to non-vested awards is expected to be recognized over a weighted–average period of 1.9 years from December 31, 2018. The estimated fair value at vesting of share-based awards that vested during the years ended December 31, 2018, 2017 and 2016 was $11.8 million, $10.5 million, and $20.5 million respectively.

In January 2019, the Company granted 2.3 million equity incentive awards to employees and non-employee directors. The awards were comprised of restricted share awards with a service condition and restricted share awards or RSU awards with a market condition contingent on the Company’s Class A common shares satisfying certain price targets.