Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Employee Stock-Based Compensation Expense

Employee stock-based compensation expense under the Company’s Incentive Plan, net of the amount capitalized in internally developed software, is as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Expense from Time-based awards (a)	$	7,554	$	5,189	$	2,523
Expense from Performance-based awards (a)(b)		(179)		4,126		377
Expense from bonus to be settled in shares (c)		3,788		—		—
Equity-based compensation capitalized (a)		(229)		(139)		—
Equity-based compensation expense		10,934		9,176		2,900
Tax benefit from equity-based compensation		(1,548)		(1,297)		(637)
Deficit / (excess) tax benefit from equity-based compensation		55		(145)		(324)
Net compensation cost	$	9,441	$	7,734	$	1,939

(a) Includes expense recognized and costs capitalized in connection with the awards granted to booj employees and former owners at the time of acquisition.

(b) Expense recognized for performance-based awards is re-assessed each quarter based on expectations of achievement against the performance conditions. For the year ended December 31, 2019, the Company reversed expense that had been recognized in 2018 for awards granted for certain booj work deliverables. This reversal was primarily a result of modifying the awards to extend the due date of the performance conditions, primarily through December 31, 2019, as the achievement of the goals at the previous date was no longer probable. Accounting for these modifications resulting in the reversal of the cumulative expense previously recognized and expensing the modified awards over the new vesting period resulting in a net $0.3 million recognized in 2019. Also, for the year ended December 31, 2019, certain conditions were no longer deemed probable of being met for other performance awards tied to the achievement of a revenue target measured over a three-year performance period. The cumulative expense previously recognized was reversed in the current period, resulting in a negative expense of ($0.5) million in 2019.

(c) In 2019, the Company revised its annual bonus plan so that half of the bonus for most employees will be settled in shares. The share amounts to be issued will be determined based on the stock price at the time of vesting in early 2020. These amounts are recognized as “Accrued liabilities” in the accompanying Consolidated Balance Sheets and are not included in “Additional paid-in capital” until shares are issued.

Time-based awards

Restricted Stock Units

The following table summarizes equity-based compensation activity related to RSUs:

	RSUs	Weighted average grant date fair value per share
Balance, January 1, 2019	298,610	$	51.97
Granted (a)	257,087	$	38.43
Shares vested (including tax withholding) (b)	(80,008)	$	43.30
Forfeited	(20,237)	$	45.41
Balance, December 31, 2019	455,452	$	46.15

(a) The weighted average grant date fair value for the years ended December 31, 2018 and 2017 were $53.04 and $55.45 per RSU granted, respectively.

(b) Pursuant to the terms of the Incentive Plan, RSUs withheld by the Company for the payment of the employee's tax withholding related to an RSU vesting are added back to the pool of shares available for future awards.

Performance-based awards

Restricted Stock Units

The following table summarizes equity-based compensation activity related to PSUs:

	PSUs	Weighted average grant date fair value per share
Balance, January 1, 2019	179,615	$	55.75
Granted (a)(b)	119,410	$	38.87
Shares vested	(97,436)	$	36.20
Forfeited	(61,625)	$	56.24
Balance, December 31, 2019	139,964	$	45.31

(a) Represents the total participant target award.

(b) The weighted average grant date fair value for the years ended December 31, 2018 and 2017 were $55.38 and $57.88 per PSU granted, respectively.