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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2018
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | 14.STOCK-BASED COMPENSATION The Company has an equity participation plan (the 2010 Performance and Equity Incentive Plan, the “2010 Plan”) whereby options (both non-qualified and incentive stock options), restricted stock units, stock appreciation rights, and other equity and performance based instruments may be granted to directors, employees, and consultants. The options and restricted stock units generally vest from the date of grant on a straight-line basis over the vesting term and generally have a seven-year or a ten-year contractual life. The 2010 Plan was adopted by the Company’s shareholders on May 6, 2010 and provides for the issuance of a maximum of 15.0 million shares of the Company’s Class A common stock, of which 6.5 million shares remain available for future issuance a s of December 31, 2018. H owever, the aggregate number of shares that may be issued pursuant to restricted stock awards, restricted stock unit awards, stock bonus awards, performance awards, other stock-based awards, or other awards granted under the 2010 Plan will not exceed 7.5 million shares, of which 6.5 million shares remain available for future issuance as of December 31, 2018. During 2018, the Board of Directors adopted a retirement policy applicable to all employees receiving equity as part of their compensation plan. This policy is effective January 1, 2019. Historically, all unvested equity awards granted would be forfeited the day after an employee stops working for the Company and any options that were vested but unexercised would be forfeited 90 days after the employee stopped working. The new retirement policy allows employees that meet certain conditions to retire and keep unvested equity awards and extend s the time the employee has to exercise vested and outstanding awards. As a result of this policy, stock compensation expense related to the adoption of the p olicy will result in an acceleration of unrecognized stock compensation expense of approximately $11.2 million and $7.3 million in the first and second quarter of 2019, respectively. Stock Options The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses a combination of historical data and historical volatility to est ablish the expected volatility, as well as to estimate the expected option life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following assumptions were used to estimate the fair value of options granted using the Blac k-Scholes option-pricing model:
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﻿ |  |  | For the year ended December 31,
﻿ |  |  | 2018 |  |  | 2017 |  |  | 2016
﻿ |  |  |  |  |  |  |  |  |
﻿Risk free interest rate |  |  | 2.57% - 2.92% |  |  | 1.70% - 1.97% |  |  | 1.11% - 1.43%
﻿Dividend yield |  |  | 0.7% |  |  | 0.0% |  |  | 0.0%
﻿Expected volatility |  |  | 21.6% |  |  | 20.0% |  |  | 20.0%
﻿Expected lives |  |  | 4.6 years |  |  | 4.6 years |  |  | 4.7 years
﻿ The following table summarizes the Company’s activities with respect to its stock option plans for the years ended December 31, 2018, 2017 and 2016 as follows (dollars and shares in thousands, except for per share data):
﻿ |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  | Weighted- |  | Weighted-Average |  |  |
﻿ |  |  |  | Average |  | Remaining |  |  |
﻿ |  | Number |  | Exercise Price |  | Contractual |  | Aggregate
﻿ |  | of Shares |  | Per Share |  | Life (in years) |  | Intrinsic Value
﻿Outstanding at December 31, 2015 |  | 3,794 |  | $ | 84.66 |  |  |  |  |
﻿Granted |  | 1,357 |  | $ | 96.64 |  |  |  |  |
﻿Exercised |  | (603) |  | $ | 46.03 |  |  |  |  |
﻿Forfeited/canceled |  | (101) |  | $ | 105.37 |  |  |  |  |
﻿Outstanding at December 31, 2016 |  | 4,447 |  | $ | 93.09 |  |  |  |  |
﻿Granted |  | 1,171 |  | $ | 115.41 |  |  |  |  |
﻿Exercised |  | (709) |  | $ | 80.73 |  |  |  |  |
﻿Forfeited/canceled |  | (67) |  | $ | 105.81 |  |  |  |  |
﻿Outstanding at December 31, 2017 |  | 4,842 |  | $ | 100.12 |  |  |  |  |
﻿Granted |  | 941 |  | $ | 156.55 |  |  |  |  |
﻿Exercised |  | (926) |  | $ | 81.73 |  |  |  |  |
﻿Forfeited/canceled |  | (41) |  | $ | 123.98 |  |  |  |  |
﻿Outstanding at December 31, 2018 |  | 4,816 |  | $ | 114.48 |  | 4.2 |  | $ | 228,248
﻿Exercisable at December 31, 2018 |  | 2,162 |  | $ | 100.15 |  | 3.0 |  | $ | 133,490
﻿Unvested at December 31, 2018 |  | 2,654 |  | $ | 126.17 |  | 5.1 |  | $ | 94,758
﻿ The weighted-average per share fair value of options granted during the years ended December 31, 2018, 2017 and 2016 was $33.01, $23.88, and $19.19, respectively. The total intrinsic value for options exercised during the years ended December 31, 2018, 2017 and 2016 was $78.0 million, $37.2 million and $36.8 million, respectively. Cash received from option exercises under all plans for the years ended December 31, 2018, 2017 and 2016 was approximately $74.7 million, $56.5 million, and $27.4 million, respectively. No tax benefit was realized for the tax deductions from option exercises under all plans for the years ended December 31, 2018, 2017 and 2016, respectively. The aggregate intrinsic value for stock options in the preceding table represents the total intrinsic value based on the Company’s closing stock price of $161.89 as of December 31, 2018. The amount represents the total intrinsic value that would have been received by the holders of the stock-based awards had these awards been exer cised and sold as of that date. Additional information regarding options outstanding and exercisable at December 31, 2018 is as follows: ﻿
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﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Options Outstanding |  | Options Exercisable
﻿ |  |  |  | Weighted Average |  | Weighted |  |  |  | Weighted
﻿ |  |  |  | Remaining |  | Average |  |  |  | Average
﻿Range |  | Outstanding |  | Contractual Life |  | Exercise Price |  | Exercisable |  | Exercise Price
﻿ |  | (in thousands) |  | (in years) |  |  |  |  | (in thousands) |  |  |
﻿$0.00 - $90.00 |  | 406 |  | 1.0 |  | $ | 68.96 |  | 406 |  | $ | 68.96
﻿$90.01 - $110.00 |  | 1,609 |  | 3.5 |  | $ | 96.29 |  | 983 |  | $ | 96.08
﻿$110.01 - $145.00 |  | 1,871 |  | 4.4 |  | $ | 119.15 |  | 773 |  | $ | 121.69
﻿$145.01 - $175.00 |  | 930 |  | 6.2 |  | $ | 156.55 |  | — |  | $ | 0.00
﻿ |  | 4,816 |  |  |  |  |  |  | 2,162 |  |  |
﻿ The following table summarizes the activity of options outstanding that had not yet vested:
﻿ |  |  |  |  |
﻿ |  |  |  |  |
﻿ |  |  |  | Weighted-
﻿ |  |  |  | Average
﻿ |  | Number |  | Fair Value
﻿ |  | of Shares |  | Per Share
﻿ |  | (in thousands) |  |  |
﻿Unvested as of December 31, 2017 |  | 2,860 |  | $ | 22.08
﻿Shares granted |  | 941 |  | $ | 33.01
﻿Vesting during period |  | (1,104) |  | $ | 21.74
﻿Forfeited/canceled |  | (43) |  | $ | 26.32
﻿Unvested as of December 31, 2018 |  | 2,654 |  | $ | 26.05
﻿ As of December 31, 2018, the total unrecognized compensation expense related to unvested stock options outstanding under the Plans is $43.3 million. That cost is expected to be recognized over a weighted average period of 2.5 years. The total fair value of options vested during 2018, 2017, and 2016 was $24.0 million, $21.4 million, and $18.5 million, respectively. Restricted Stock Units The following table summarizes the Company’s restricted stock unit activity for the year ended December 31, 2018:
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﻿ |  |  |  |  |  |  |  |  | Weighted-Average
﻿ |  |  |  |  |  |  | Number of |  | Grant Date Fair
﻿ |  |  |  |  |  |  | Shares |  | Value per Share
﻿ |  |  |  |  |  |  | (in thousands) |  |  |
﻿Outstanding at December 31, 2017 |  |  |  |  |  |  | 328 |  | $ | 110.20
﻿Granted |  |  |  |  |  |  | 138 |  | $ | 156.61
﻿Vested |  |  |  |  |  |  | (129) |  | $ | 110.93
﻿Forfeited/canceled |  |  |  |  |  |  | (13) |  | $ | 135.22
﻿Outstanding at December 31, 2018 |  |  |  |  |  |  | 324 |  | $ | 128.69
﻿ As of December 31, 2018, total unrecognized compensation expense related to unvested restricted stock units granted under the 2010 Plan was $28.1 million and is expected to be recognized over a weighted-average period of 2.6 years. Employee Stock Purchase Plan In 2008, the Board of Directors of the Company adopted the 2008 Employee Stock Purchase Plan (“2008 Purchase Plan”) which reserved 500,000 shares of Class A common stock for purchase. The 2008 Purchase Plan permits eligible employee participants to purchase Class A common stock at a price per share which is equal to 85% of the fair market value of Class A common stock on the last day of an offering period. For the year ended December 31, 2018, 16,798 shares of Class A common stock were issued under the 2008 Purchase Plan, which resulted in cash proceeds to the Company of approximately $2.3 million, compared to the year ended December 31, 2017 when 28,232 shares of Class A common stock were issued under the 2008 Purchase Plan which resulted in cash proceeds to the Company of $3.3 million. O n May 23, 20 18, the Board of Directors of the Company adopted the 20 1 8 Employee Stock Purchase Plan (“20 1 8 Purchase Plan”) which replaced the 2008 Purchase Plan and reserved 300,000 shares of Class A common stock for purchase. The 20 1 8 Purchase Plan permits eligible employee participants to purchase Class A common stock at a price per share which is equal to 85% of the fair market value of Class A common stock on the last day of an offering period. For the year ended December 31, 2018, 10,052 shares of Class A common stock were issued under the 201 8 Purchase Plan, which resulted in cash proceeds to the Company of approximately $1.4 mi llion. At December 31, 2018, 289,948 shares remained avai lable for issuance under the 201 8 Purchase Plan. In addition, the Company recorded $0.6 million, $0.6 million, and $0.5 million of non-cash compensation expense relating to the shares issued under the 2008 Purchase Plan and 2018 Purchase Plan for each of the years ended December 31, 2018, 2017, and 2016, respectively. Non-Cash Compensation Expense The table below reflects a break out by category of the non-cash compensation expense amounts recognized on the Company’s Statements of Operations for the years ended December 31, 2018, 2017, and 2016, respectively:
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﻿ |  |  | For the year ended December 31,
﻿ |  | 2018 |  | 2017 |  | 2016
﻿ |  | (in thousands)
﻿Cost of revenues |  | $ | 1,182 |  | $ | 1,013 |  | $ | 418
﻿Selling, general and administrative |  |  | 41,145 |  |  | 37,236 |  |  | 32,497
﻿Total cost of non-cash compensation included |  |  |  |  |  |  |  |  |
﻿in loss before provision for income taxes |  |  | 42,327 |  |  | 38,249 |  |  | 32,915
﻿Amount of income tax recognized in earnings |  |  | — |  |  | — |  |  | —
﻿Amount charged against loss |  | $ | 42,327 |  | $ | 38,249 |  | $ | 32,915
﻿ In addition, the Company capitalized $0.8 million, $0.6 million and $0.5 million of non-cash compensation for the years ended December 31, 2018, 2017 and 2016, respectively, to fixed assets.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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