EQUITY-BASED COMPENSATION

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

In 2015, the Company established a Nonqualified Stock Option and Incentive Award Plan (“Incentive Plan”) which provides for the ability to award equity compensation awards in the form of stock options, stock appreciation rights, restricted stock, and performance awards to eligible employees, consultants, directors, and other individuals who provide services to the Company, each as determined by the Compensation Committee of the Board of Directors.

As of March 31, 2018, the Incentive Plan provides for the issuance of up to 30 million shares. The Company accounts for equity-based compensation expense in accordance with Accounting Standards Codification 718 Compensation-Stock Compensation (“ASC 718”) and is reported within operating expenses and general and administrative in the Consolidated Statements of Operations.

The Consolidated Statements of Operations includes the following expense related to its stock-based compensation arrangements:



	Three Months Ended March 31,				Remaining Expense To Be Recognized, If All Vesting Conditions Are Met		Weighted Average Remaining Contractual Term, (in years)
	2018		2017				Weighted Average Remaining Contractual Term, (in years)
Stock Options	$	9	$	—	$	—	8.22
Restricted Shares	90		59		416		3.10
Common Units	109		28		485		1.45
Total	$	208	$	87	$	901

Stock Options

In the three months ended March 31, 2018, the Company granted equity-based compensation awards of 10,000 stock options to its two new independent directors (5,000 options each) pursuant to the Incentive Plan with a grant date fair value of $9 which immediately vested upon grant and expire after 10 years. The fair value of each option was estimated on the grant date using a Black-Scholes option valuation model using the following weighted average assumptions:



Expected volatility	The expected stock volatility is based on an assessment of the stock volatility of the Company’s publicly traded stock over the preceding 12-month period	19.3	%
Risk free interest rate	The risk-free rate is determined using the implied yield currently available on U.S. government bonds with a term consistent with the expected term on the date of grant	2.7	%
Expected dividend yield	The expected dividend yield is based on management’s currently expected dividend rate	7.2	%
Expected term	Expected term used represents the period of time the options granted are expected to be outstanding	5 years