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Equity Incentive Plans and Stock-Based Compensation
 9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Equity Incentive Plans and Stock-Based Compensation Equity Incentive Plans and Stock-Based Compensation
A summary of shares available for grant under the Company’s plans is as follows:
 
Shares Available
 for Grant
Shares available as of December 31, 20196,826,863 
Increase in shares approved for issuance (3)7,800,000 
Stock options granted (40,000)
Stock options forfeited 97,836 
Nonvested equity stock and stock units granted (1) (2)(3,446,570)
Nonvested equity stock and stock units forfeited (1)977,873 
Total available for grant as of September 30, 202012,216,002 
_________________________________________
(1)For purposes of determining the number of shares available for grant under the 2015 Equity Incentive Plan (the “2015 Plan”) against the maximum number of shares authorized, each share of restricted stock granted reduces the number of shares available for grant by 1.5 shares and each share of restricted stock forfeited increases shares available for grant by 1.5 shares.
(2)Amount includes approximately 0.5 million shares that have been reserved for potential future issuance related to certain performance unit awards granted in the first quarter of 2020 and discussed under the section titled “Nonvested Equity Stock and Stock Units” below.
(3)On April 30, 2020, the Company’s stockholders approved an additional 7,800,000 shares for issuance under the 2015 Plan.

General Stock Option Information
The following table summarizes stock option activity under the 2015 Plan for the nine months ended September 30, 2020 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of September 30, 2020.
 Options Outstanding  
 (In thousands, except per share amounts and years)
Number of
 Shares
Weighted-
 Average
 Exercise Price
 Per Share
Weighted-
 Average
 Remaining
 Contractual
 Term (years)
Aggregate
 Intrinsic
 Value
Outstanding as of December 31, 20191,639,146 $11.37   
Options granted40,000 $15.59   
Options exercised(493,979)$10.45   
Options forfeited(97,836)$19.63   
Outstanding as of September 30, 20201,087,331 $11.20 4.99$2,893 
Vested or expected to vest at September 30, 20201,084,594 $11.19 4.98$2,892 
Options exercisable at September 30, 2020861,695 $10.61 4.14$2,749 
Employee Stock Purchase Plan
Under the 2015 Employee Stock Purchase Plan (“2015 ESPP”), the Company issued 277,838 shares at a price of $10.51 per share and 429,396 shares at a price of $7.95 per share during the nine months ended September 30, 2020 and 2019, respectively. On April 30, 2020, the Company's stockholders approved an additional 2,000,000 shares to be reserved for issuance under the 2015 ESPP. As of September 30, 2020, approximately 3.4 million shares under the 2015 ESPP remained available for issuance.
Stock-Based Compensation
For the nine months ended September 30, 2020 and 2019, the Company maintained stock plans covering a broad range of potential equity grants including stock options, nonvested equity stock and equity stock units and performance based instruments. In addition, the Company sponsors the 2015 ESPP, whereby eligible employees are entitled to purchase common stock semi-annually, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates.
Stock Options
During the three and nine months ended September 30, 2020 and 2019, respectively, the number of stock options granted were not material. During the three and nine months ended September 30, 2020, the Company recorded stock-based compensation expense related to stock options of $0.2 million and $0.4 million, respectively. During the three and nine months ended September 30, 2019, the Company recorded stock-based compensation expense related to stock options of $0.3 million and $0.8 million, respectively.
As of September 30, 2020, there was $1.4 million of total unrecognized compensation cost, net of expected forfeitures, related to non-vested stock-based compensation arrangements granted under the stock option plans. That cost is expected to be recognized over a weighted-average period of 2.3 years.
Employee Stock Purchase Plan
For the three and nine months ended September 30, 2020, the Company recorded compensation expense related to the 2015 ESPP of $0.3 million and $1.1 million, respectively. For the three and nine months ended September 30, 2019, the Company recorded stock-based compensation expense related to the 2015 ESPP of $0.3 million and $1.2 million, respectively. As of September 30, 2020, there was $0.1 million of total unrecognized compensation cost related to stock-based compensation arrangements granted under the 2015 ESPP. That cost is expected to be recognized over one month.
Valuation Assumptions
The fair value of stock awards is estimated as of the grant date using the Black-Scholes-Merton (“BSM”) option-pricing model assuming a dividend yield of 0% and the additional weighted-average assumptions as listed in the table below.
The stock options granted during the three and nine months ended September 30, 2020 and 2019, respectively, were not material.
Employee Stock Purchase Plan
Nine Months Ended
September 30,
20202019
Employee Stock Purchase Plan:
Expected stock price volatility46 %32 %
Risk free interest rate0.12 %2.44 %
Expected term (in years)0.50.5
Weighted-average fair value of purchase rights granted under the purchase plan$3.50 $2.80 

Nonvested Equity Stock and Stock Units
The Company grants nonvested equity stock units to officers, employees and directors. During the nine months ended September 30, 2020, the Company granted nonvested equity stock units totaling approximately 0.1 million and 1.9 million shares under the 2015 Plan. During the three and nine months ended September 30, 2019, the Company granted nonvested equity stock units totaling approximately 0.4 million and 4.1 million shares under both the 2015 Plan and 2019 Inducement Plan, respectively. These awards have a service condition, generally a service period of four years, except in the case of grants to directors, for which the service period is one year. For the three and nine months ended September 30, 2020, the nonvested equity stock units were valued at the date of grant giving them a fair value of approximately $0.9 million and $30.2 million, respectively. For the three and nine months ended September 30, 2019, the nonvested equity stock units were valued at the date of grant giving them a fair value of approximately $5.6 million and $41.2 million, respectively. During the first quarters of 2020 and 2019, the Company granted performance unit awards to certain Company executive officers with vesting subject to the achievement of certain performance and/or market conditions. The ultimate number of performance units that can be earned can range from 0% to 200% of target depending on performance relative to target over the applicable period. The shares earned will vest on the third anniversary of the date of grant. The Company’s shares available for grant have been reduced to reflect the shares that could be earned at the maximum target.
For the three and nine months ended September 30, 2020, the Company recorded stock-based compensation expense of approximately $6.3 million and $18.1 million, respectively, related to all outstanding nonvested equity stock grants. For the three and nine months ended September 30, 2019, the Company recorded stock-based compensation expense of approximately $6.8 million and $19.7 million, respectively, related to all outstanding nonvested equity stock grants. Unrecognized stock-based compensation related to all nonvested equity stock grants, net of estimated forfeitures, was approximately $39.9 million at September 30, 2020. This amount is expected to be recognized over a weighted-average period of 2.3 years.
The following table reflects the activity related to nonvested equity stock and stock units for the nine months ended September 30, 2020:
Nonvested Equity Stock and Stock UnitsShares
Weighted-
 Average
 Grant-Date
 Fair Value
Nonvested at December 31, 20195,289,483 $11.27 
Granted1,931,563 $15.62 
Vested(1,566,615)$11.65 
Forfeited(547,897)$11.65 
Nonvested at September 30, 20205,106,534 $12.77