(11) Share-based Compensation

The Company’s 2013 Stock Incentive Plan (as amended, the “2013 Equity Plan”) authorizes the issuance of various types of share-based awards to the Company’s employees, officers, directors, and other eligible participants. In addition, the 2013 Equity Plan provides for automatic annual stock option grants (with the first set of such annual grants awarded in May 2015) to the Company’s non-employee directors in the amount of 5,000 shares of the Company’s class A common stock per director, per year. As of September 30, 2015, the total number of shares of the Company’s class A common stock authorized for issuance under the 2013 Equity Plan was 1,500,000 shares. In October 2015, the Board of Directors authorized, subject to stockholder approval, an increase in the total number of shares of the Company’s class A common stock authorized for issuance under the 2013 Equity Plan from 1,500,000 shares to 1,700,000 shares.

During the third quarter of 2015, stock options to purchase an aggregate of 130,000 shares of class A common stock were granted to certain Company officers and employees pursuant to the 2013 Equity Plan. As of September 30, 2015, there were options to purchase 1,436,250 shares of class A common stock outstanding under the 2013 Equity Plan and no remaining shares of class A common stock authorized for issuance and not subject to outstanding awards under the 2013 Equity Plan.

The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the three months ended September 30, 2015:


	Stock Options Outstanding
			Weighted Average		Aggregate		Weighted Average
			Exercise Price		Intrinsic		Remaining Contractual
	Shares		Per Share		Value		Term (Years)
Balance as of July 1, 2015		1,306	$	120.62
Granted		130		201.25
Exercised		0		0.00	$	0
Forfeited/Expired		0		0.00

Balance as of September 30, 2015		1,436	$	127.91


Exercisable as of September 30, 2015		351	$	103.09	$	32,800		7.6
Expected to vest as of September 30, 2015		1,035	$	138.03	$	61,105		8.8

Total		1,386	$	129.18	$	93,904		8.5

Stock options outstanding as of September 30, 2015 are comprised of the following range of exercise prices per share (in thousands, except per share data and years):


	Stock Options Outstanding at September 30, 2015
			Weighted Average		Weighted Average
			Exercise Price		Remaining Contractual
Range of Exercise Prices per Share	Shares		Per Share		Term (Years)
$ 92.84 - $120.00		507	$	94.49		6.9
$120.01 - $150.00		514	$	121.43		8.6
$150.01 - $180.00		285	$	165.66		9.3
$180.01 - $201.25		130	$	201.25		9.9

Total		1,436	$	127.91		8.2

An aggregate of 125,000 stock options with an aggregate fair value of $5.3 million vested during the three months ended September 30, 2015. The Company expects the majority of unvested options at September 30, 2015 to fully vest in future years in accordance with their vesting schedules. Share-based compensation expense has been adjusted, where applicable, for any expected forfeitures. The weighted average grant date fair value of stock option awards using the Black-Scholes pricing model was $82.89 for each share subject to a stock option granted during the three months ended September 30, 2015, based on the following assumptions:


	Three months ended
	September 30,
	2015

Expected term of options in years		6.3
Expected volatility		39.0	%
Risk-free interest rate		1.9	%
Expected dividend yield		0.0	%

No stock option awards were granted during the three months ended September 30, 2014.

For the three and nine months ended September 30, 2015, the Company recognized approximately $4.5 million and $12.5 million, respectively, in share-based compensation expense from stock options granted under the 2013 Equity Plan. For the three and nine months ended September 30, 2014, the Company recognized approximately $3.9 million and $8.6 million, respectively, in share-based compensation expense from stock options granted under the 2013 Equity Plan. As of September 30, 2015, there was approximately $54.5 million of total unrecognized share-based compensation expense related to unvested stock options. The Company expects to recognize this remaining share-based compensation expense over a weighted average vesting period of approximately 3.0 years.

During the nine months ended September 30, 2015, the Company was able to recognize and utilize net operating loss carryforwards arising directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting that was generated under the 2013 Equity Plan. Accordingly, stockholders’ equity increased by $1.0 million during the nine months ended September 30, 2015. During the nine months ended September 30, 2014, no windfall tax benefits were realized from the exercise of stock options.