(10) 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 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 (“Amendment No. 3”). The Company considers stockholder approval of Amendment No. 3 to the 2013 Equity Plan to be perfunctory since the Company’s Chairman, President & Chief Executive Officer holds a majority of the total voting power of all the Company’s outstanding voting stock.

During the first quarter of 2016, no stock option awards were granted pursuant to the 2013 Equity Plan. As of March 31, 2016, there were options to purchase 896,250 shares of class A common stock outstanding under the 2013 Equity Plan. As of March 31, 2016, there were 602,500 remaining shares of class A common stock authorized for future issuance under the 2013 Equity Plan, 200,000 shares of which are subject to stockholder approval of Amendment No. 3.

The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the three months ended March 31, 2016:


	Stock Options Outstanding
				Weighted Average		Aggregate		Weighted Average
				Exercise Price		Intrinsic		Remaining Contractual
	Shares			Per Share		Value		Term (Years)
Balance as of January 1, 2016		1,323		$	129.04
Granted		0			0.00
Exercised		(102	)		93.85	$	7,550
Forfeited/Expired		(325	)		98.39

Balance as of March 31, 2016		896		$	144.13

Exercisable as of March 31, 2016		169		$	132.20	$	8,019		8.3
Expected to vest as of March 31, 2016		727		$	146.90		26,673		8.5

Total		896		$	144.13	$	34,692		8.5

Stock options outstanding as of March 31, 2016 are comprised of the following range of exercise prices per share (in thousands, except per share data and years):


	Stock Options Outstanding at March 31, 2016
			Weighted Average		Weighted Average
			Exercise Price		Remaining Contractual
Range of Exercise Prices per Share	Shares		Per Share		Term (Years)
$117.85 - $120.00		32	$	118.66		8.1
$120.01 - $150.00		514	$	121.43		8.1
$150.01 - $180.00		220	$	167.17		8.9
$180.01 - $201.25		130	$	201.25		9.4

Total		896	$	144.13		8.5

An aggregate of 36,250 stock options with an aggregate fair value of $2.5 million vested during the three months ended March 31, 2016. The Company expects all unvested options at March 31, 2016 to fully vest in future years in accordance with their vesting schedules and therefore share-based compensation expense has not been adjusted for any expected forfeitures. No stock option awards were granted during the three months ended March 31, 2016. The weighted average grant date fair value of stock option awards using the Black-Scholes pricing model was $68.19 for each share subject to a stock option granted during the three months ended March 31, 2015, based on the following assumptions:


	Three months ended
	March 31,
	2015
Expected term of options in years		6.3
Expected volatility		40.2	%
Risk-free interest rate		1.5	%
Expected dividend yield		0.0	%

For the three months ended March 31, 2016 and 2015, the Company recognized approximately $1.5 million and $3.6 million, respectively, in share-based compensation expense from stock options granted under the 2013 Equity Plan. As of March 31, 2016, there was approximately $36.2 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 2.7 years.

During the three months ended March 31, 2016 and 2015, the Company was able to recognize and utilize tax deductions related to equity compensation in excess of compensation recognized for financial reporting that was generated under the 2013 Equity Plan. Accordingly, additional paid-in capital increased by $1.3 million and $0.5 million during the three months ended March 31, 2016 and 2015, respectively.

During the three months ended March 31, 2016, the Company wrote off $1.6 million of deferred tax assets related to certain vested stock options that were no longer exercisable. Accordingly, additional paid-in capital decreased by $1.6 million during the three months ended March 31, 2016. No such adjustment was made during the three months ended March 31, 2015.

During the three months ended March 31, 2016, the Company paid $3.7 million to tax authorities related to the net exercise of a stock option under the 2013 Equity Plan. This payment resulted in a $3.7 million reduction to additional paid-in capital during the three months ended March 31, 2016. No net exercises of stock options were made during the three months ended March 31, 2015.