XML 52 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Equity-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Option activity
The number and weighted average grant date fair value for nonvested unit options outstanding are as follows:
 
Number of Nonvested Options Outstanding (in thousands)
 
Weighted Average Grant Date Fair Value per Option
Nonvested unit options outstanding—December 31, 2014
1,398

 
$
0.93

Options vested
(924
)
 
0.90

Nonvested unit options outstanding—December 31, 2015
474

 
0.97

Options forfeited
(195
)
 
0.97

Unit options vested
(279
)
 
0.97

Nonvested unit options outstanding—December 31, 2016
—

 
—

Nonvested unit options outstanding—December 31, 2017
—

 
$
—

The following table summarizes information related to stock options:
 
Number of Stock Options
(in thousands)
 
Weighted Average Exercise Price per Stock Option
 
Weighted Average Remaining Contractual Life (Years)
 
Aggregate
Intrinsic
Value(1) 
(in thousands)
Stock options outstanding—December 31, 2016
—

 
$
—

 
 
 
 
Stock options granted
5,725

 
$
17.00

 
 
 
 
Stock options outstanding—December 31, 2017
5,725

 
$
17.00

 
9.77
 
$
6,813

Stock options vested and exercisable—December 31, 2017
5,626

 
$
17.00

 
9.77
 
$
6,695

________________________________________
(1)
The intrinsic value is calculated as the difference between the fair value of the stock option on December 31, 2017 and the exercise price of the stock option.
The number and weighted average grant date fair value for nonvested stock options granted and outstanding are as follows:
 
Number of Stock Options
(in thousands)
 
Weighted Average Grant Date Fair Value
Nonvested stock options outstanding—December 31, 2016
—

 
$
—

Stock options granted
5,725

 
$
5.00

Stock options vested
(5,626
)
 
$
4.99

Nonvested stock options outstanding—December 31, 2017
99

 
$
5.37

The unit option activity under the Unit Option Plan is summarized as follows:
 
Number of Units (in thousands)
 
Weighted Average Exercise Price per Unit
 
Weighted Average Remaining Contractual Life (Years)
 
Aggregate
Intrinsic
Value(1) 
(in thousands)
Unit options outstanding—December 31, 2014
6,752

 
$
2.07

 
 
 
 
Unit options exercised
(2,575
)
 
2.00

 
 
 
 
Unit options settled
(3,536
)
 
2.04

 
 
 
 
Unit options outstanding—December 31, 2015
641

 
2.52

 
4.73
 
$
1,930

Unit options exercised
(119
)
 
2.67

 
 
 
 
Unit options settled
(160
)
 
2.67

 
 
 
 
Unit options forfeited
(195
)
 
2.67

 
 
 
 
Unit options outstanding—December 31, 2016
167

 
2.09

 
1.75
 
$
939

Unit options exercised
(57
)
 
2.85

 
 
 
 
Unit options outstanding—December 31, 2017
110

 
$
2.85

 
0.75
 
$
1,691

Unit options vested and exercisable—December 31, 2015
167

 
$
2.09

 
2.75
 
$
574

Unit options vested and exercisable—December 31, 2016
167

 
$
2.09

 
1.75
 
$
939

Unit options vested and exercisable—December 31, 2017
110

 
$
2.85

 
0.75
 
$
1,691

________________________________________
(1)
The intrinsic value is calculated as the difference between the fair value of the unit on December 31, 2017, 2016, and 2015 and the exercise price of the option.
Additional disclosures for unit options
The following additional disclosures are provided for unit options during the periods presented:
 
Years Ended
December 31,
 
2017
 
2016
 
2015
 
(in thousands)
Total fair value of unit options vested
$
—

 
$
271

 
$
835

Total aggregate intrinsic value of unit options exercised(1)
$
869

 
$
601

 
$
9,098

________________________________________
(1)
The intrinsic value is calculated as the difference between the fair value of the unit on December 31, 2017, 2016, and 2015 and the exercise price of the option.
Summary of unit activity
The Incentive Unit activity is summarized below:
 
Number of Units
(in thousands)
 
Weighted Average Hurdle Amount per Unit
 
Weighted Average Remaining Contractual Life (Years)
 
Aggregate Intrinsic Value(1) 
(in thousands)
Incentive Units outstanding—December 31, 2014
8,760

 
$
3.53

 
 
 
 
Incentive Units granted
10,444

 
4.35

 
 
 
 
Incentive Units forfeited
(899
)
 
3.71

 
 
 
 
Incentive Units outstanding—December 31, 2015
18,305

 
3.99

 
2.85

 
$
28,235

Incentive Units granted
2,197

 
6.38

 
 
 
 
Incentive Units forfeited
(1,109
)
 
5.08

 
 
 
 
Incentive Units outstanding—December 31, 2016
19,393

 
4.20

 
1.98

 
$
68,139

CEO Award
7,500

 
—

 
 
 
 
President Award
1,512

 
11.69

 
 
 
 
Incentive Units forfeited
(873
)
 
4.62

 
 
 
 
Incentive Units net settled at IPO
(5,589
)
 
5.74

 
 
 
 
Incentive Units converted into Common Units at IPO
(21,943
)
 
2.87

 
 
 
 
Incentive Units outstanding—December 31, 2017
—

 
$
—

 
—

 
$
—

Incentive Units vested—December 31, 2015
1,191

 
$
3.47

 
1.94

 
$
2,454

Incentive Units vested—December 31, 2016
4,558

 
$
3.97

 
1.50

 
$
17,053

Incentive Units vested—December 31, 2017
22,125

 
$
3.82

 
—

 
$
318,033

________________________________________
(1)
The intrinsic value is calculated as the difference between the fair value of the Incentive Unit on December 31, 2017, 2016, and 2015 and the hurdle amount of the Incentive Unit.
Number and weighted average grant date fair value for nonvested stock options granted and outstanding
The number and weighted average grant date fair value for nonvested Incentive Units granted and outstanding are as follows:
 
Number of Nonvested Incentive Units Outstanding (in thousands)
 
Weighted Average Grant Date Fair Value per Incentive Unit
Nonvested Incentive Units outstanding—December 31, 2014
7,977

 
$
1.36

Incentive Units granted
10,444

 
$
1.18

Incentive Units forfeited
(899
)
 
$
1.26

Incentive Units vested
(408
)
 
$
1.36

Nonvested Incentive Units outstanding—December 31, 2015
17,114

 
$
1.26

Incentive Units granted
2,197

 
$
2.04

Incentive Units forfeited
(1,109
)
 
$
1.75

Incentive Units vested
(3,367
)
 
$
1.24

Nonvested Incentive Units outstanding—December 31, 2016
14,835

 
$
1.34

CEO Award
7,500

 
$
11.69

President Award
1,512

 
$
1.98

Incentive Units forfeited
(873
)
 
$
0.97

President Award net settled at IPO
(624
)
 
$
1.98

Nonvested Incentive Units converted into nonvested Common Units at IPO—CEO Award
(4,500
)
 
$
11.69

Nonvested Incentive Units converted into nonvested Common Units at IPO—President Award
(283
)
 
$
1.98

Incentive Units vested
(17,567
)
 
$
3.14

Nonvested Incentive Units outstanding—December 31, 2017
—

 
$
—
Weighted average assumptions used to estimate the grant date fair value of incentive units
The weighted average assumptions used in estimating the grant date fair value of these awards, exclusive of the CEO Award, are listed in the table below:
 
Years Ended
December 31,
 
2017
 
2016
 
2015
Expected volatility
29.3
%
 
39.8
%
 
35.1
%
Risk-free interest rate
1.4
%
 
1.5
%
 
1.4
%
Expected term (in years)
2.0

 
3.7

 
3.1

Dividend rate
0.6
%
 
0.9
%
 
1.3
%
Weighted average assumptions used to estimate the grant date fair value of stock options
The weighted average assumptions used in estimating the grant date fair value of the stock options are listed in the table below:
 
Year Ended December 31, 2017
Expected volatility
31.8
%
Risk-free interest rate
1.9
%
Expected term (in years)
5.0

Dividend rate
0.6
%
RSU information
The following table summarizes information related to RSUs:
 
Number of RSUs
(in thousands)
 
Weighted Average Grant Date Fair Value per RSU
RSUs outstanding—December 31, 2016
—

 
$
—

CEO RSU Award
51

 
$
18.01

RSUs vested
(20
)
 
$
18.01

RSUs outstanding—December 31, 2017
31

 
$
18.01
Equity-based compensation expense
Total equity-based compensation recognized in the consolidated statements of operations and comprehensive income (loss) for the 2017 Plan, Unit Option Plan, Incentive Units, and Common Units is as follows for each of the periods presented:
 
Years Ended
December 31,
 
2017
 
2016
 
2015
 
(in thousands)
Cost of revenue
$
1,289

 
$
181

 
$
—

Selling, general and administrative
83,501

 
5,754

 
5,237

Total equity-based compensation expense
$
84,790

 
$
5,935

 
$
5,237