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Share-based Compensation | 12 Months Ended
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Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Share-based Compensation | (10) Share-based Compensation 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. As of December 31, 2019, a total of 2,300,000 shares of the Company’s class A common stock were authorized for issuance under the 2013 Equity Plan. As of December 31, 2019, there were 360,625 shares of class A common stock reserved and available for future issuance under the 2013 Equity Plan. Stock option awards During 2019, stock options to purchase an aggregate of 470,000 shares of class A common stock were granted pursuant to the 2013 Equity Plan. As of December 31, 2019, there were options to purchase 1,634,358 shares of class A common stock outstanding under the 2013 Equity Plan. Shares issued under the 2013 Equity Plan may consist in whole or in part of authorized but unissued shares or treasury shares. No awards may be issued more than 10 years after the 2013 Equity Plan’s effective date. Stock options that are granted under the 2013 Equity Plan must have an exercise price equal to at least the fair market value of the Company’s class A common stock on the date of grant, become exercisable as established by the Board of Directors or the Compensation Committee, and expire no later than 10 years following the date of grant. The Company recognizes share-based compensation expense associated with such stock option awards on a straight-line basis over the award’s requisite service period (generally, the vesting period). The stock option awards granted to date vest in equal annual installments over an approximately four-year vesting period (unless accelerated in connection with a change in control event under specified conditions as set forth in the applicable option agreement or otherwise in accordance with provisions of the 2013 Equity Plan or applicable option agreement). The Company has made an accounting policy election to account for forfeitures of stock options as they occur and therefore share-based compensation expense has not been adjusted for any estimated forfeitures. Share-based compensation expense is based on the fair value of the stock option awards on the date of grant, as estimated using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of certain management assumptions, including the expected term, expected stock price volatility, risk-free interest rate, and expected dividend yield. The Company estimates the term over which option holders are expected to hold their stock options by using the simplified method for “plain-vanilla” stock option awards because the Company’s stock option exercise history does not provide a reasonable basis to compute the expected term for stock options granted under the 2013 Equity Plan. The Company relies exclusively on its historical stock price volatility to estimate the expected stock price volatility over the expected term because the Company believes future volatility is unlikely to differ from the past. In estimating the expected stock price volatility, the Company uses a simple average calculation method. The risk-free interest rate is based on U.S. Treasury securities with terms that approximate the expected term of the stock options. The expected dividend yield is based on the Company’s past cash dividend history and anticipated future cash dividend payments. The expected dividend yield is zero, as the Company has not previously declared cash dividends and does not currently intend to declare cash dividends in the foreseeable future. These assumptions are based on management’s best judgment, and changes to these assumptions could materially affect the fair value estimates and amount of share-based compensation expense recognized. The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the periods indicated:
|  | Stock Options Outstanding
|  |  |  |  |  | Weighted Average |  |  | Aggregate |  |  | Weighted Average
|  |  |  |  |  | Exercise Price |  |  | Intrinsic |  |  | Remaining Contractual
|  | Shares |  |  | Per Share |  |  | Value |  |  | Term (Years)
Balance as of January 1, 2017 |  |  | 886 |  |  | $ | 143.89 |  |  |  |  |  |  |
Granted |  |  | 175 |  |  |  | 169.04 |  |  |  |  |  |  |
Exercised |  |  | (12 | ) |  |  | 143.35 |  |  | $ | 541 |  |  |
Forfeited/Expired |  |  | (57 | ) |  |  | 196.52 |  |  |  |  |  |  |
Balance as of December 31, 2017 |  |  | 992 |  |  |  | 145.28 |  |  |  |  |  |  |
Granted |  |  | 710 |  |  |  | 130.27 |  |  |  |  |  |  |
Exercised |  |  | (21 | ) |  |  | 121.13 |  |  | $ | 196 |  |  |
Forfeited/Expired |  |  | (201 | ) |  |  | 154.49 |  |  |  |  |  |  |
Balance as of December 31, 2018 |  |  | 1,480 |  |  |  | 137.16 |  |  |  |  |  |  |
Granted |  |  | 470 |  |  |  | 150.88 |  |  |  |  |  |  |
Exercised |  |  | (51 | ) |  |  | 128.17 |  |  | $ | 799 |  |  |
Forfeited/Expired |  |  | (265 | ) |  |  | 135.88 |  |  |  |  |  |  |
Balance as of December 31, 2019 |  |  | 1,634 |  |  | $ | 141.60 |  |  |  |  |  |  |
Exercisable as of December 31, 2019 |  |  | 847 |  |  | $ | 137.97 |  |  | $ | 12,251 |  |  | 5.0
Expected to vest as of December 31, 2019 |  |  | 787 |  |  | $ | 145.50 |  |  |  | 3,826 |  |  | 9.0
Total |  |  | 1,634 |  |  | $ | 141.60 |  |  | $ | 16,077 |  |  | 6.9
Stock options outstanding as of December 31, 2019 are comprised of the following range of exercise prices per share (in thousands, except per share data and years):
|  | Stock Options Outstanding at December 31, 2019 |
|  |  |  |  |  | Weighted Average |  |  | Weighted Average |
|  |  |  |  |  | Exercise Price |  |  | Remaining Contractual |
Range of Exercise Prices per Share |  | Shares |  |  | Per Share |  |  | Term (Years) |
$119.02 - $140.00 |  |  | 951 |  |  | $ | 125.73 |  |  |  | 5.9 |
$140.01 - $160.00 |  |  | 417 |  |  | $ | 152.20 |  |  |  | 9.9 |
$160.01 - $180.00 |  |  | 113 |  |  | $ | 167.75 |  |  |  | 5.2 |
$180.01 - $201.25 |  |  | 153 |  |  | $ | 192.11 |  |  |  | 6.5 |
Total |  |  | 1,634 |  |  | $ | 141.60 |  |  |  | 6.9 |
An aggregate of 216,250, 251,250, and 215,000 stock options with an aggregate fair value of $12.6 million, $15.5 million, and $13.0 million vested during the years ended December 31, 2019, 2018, and 2017, respectively. The weighted average grant date fair value of stock option awards using the Black-Scholes option pricing model was $54.36, $51.68, and $68.67 for each share subject to a stock option granted during the years ended December 31, 2019, 2018, and 2017, respectively, based on the following assumptions:
|  | Years Ended December 31,
|  | 2019 |  |  | 2018 |  | 2017
Expected term of options in years |  | 6.3 |  |  | 6.3 |  | 6.3
Expected volatility |  | 33.2% - 33.4% |  |  | 33.7% - 35.5% |  | 37.4% - 37.8%
Risk-free interest rate |  | 1.7% - 2.5% |  |  | 2.7% - 2.9% |  | 1.9% - 2.3%
Expected dividend yield |  |  | 0.0 | % |  | 0.0% |  | 0.0%
The Company recognized approximately $10.1 million, $14.6 million, and $14.3 million in share-based compensation expense for the years ended December 31, 2019, 2018, and 2017, respectively, from stock options granted under the 2013 Equity Plan. As of December 31, 2019, there was approximately $36.4 million of total unrecognized share-based compensation expense related to unvested stock options. As of December 31, 2019, the Company expects to recognize this remaining share-based compensation expense over a weighted average vesting period of approximately 3.2 years. Other stock-based awards During 2018, the Company granted certain awards characterized as “other stock-based awards” under the 2013 Equity Plan. These other stock-based awards are similar to stock options, except these awards are settled in cash only and not in shares of the Company’s class A common stock. These awards are classified as liabilities in the Company’s Consolidated Balance Sheets due to the required cash settlement feature and the fair value of the awards is remeasured each quarterly reporting period. Other stock-based awards were not granted in 2019. For the years ended December 31, 2019 and 2018, the Company did not recognize a material amount in share-based compensation expense from other stock-based awards. As of December 31, 2019, there was approximately $0.3 million of total unrecognized share-based compensation expense related to other stock-based awards. The Company expects to recognize this remaining share-based compensation expense over a weighted average vesting period of approximately 2.4 years, subject to additional fair value adjustments through the earlier of settlement or expiration.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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