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Share-Based Compensation | 6 Months Ended
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Jun. 30, 2018
Share-Based Compensation | 10. Share-Based Compensation Prior to November 1, 2013, Ceridian employees participated in a share-based compensation plan of the former ultimate parent of Ceridian. The 2007 Stock Incentive Plan (“2007 SIP”) authorized the issuance of up to 10,540,540 shares of common stock of Parent to eligible participants through stock options and stock awards. Eligible participants in the 2007 SIP included the Parent’s directors, employees and consultants. Effective November 1, 2013, most participants who held stock options under the 2007 SIP converted their options to a newly created option plan, the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan (“2013 SIP”). A small number of participants maintained their stock options in the 2007 SIP. Concurrent with the IPO and legal reorganization, all outstanding stock options under the 2007 SIP were converted into options to purchase common stock of Ceridian. As of June 30, 2018, there were 5,000 stock options outstanding under the 2007 SIP. The 2013 SIP authorized the issuance of up to 12,500,000 shares of common stock of Ceridian to eligible participants through stock options and other stock awards, which was increased to 15,000,000 on March 20, 2017, by the Board of Directors. Eligible participants in the 2013 SIP include Ceridian’s directors, employees, and consultants. As part of the 2013 SIP, the Board of Directors approved a stock appreciation rights program that authorized the issuance of up to 600,000 stock appreciation rights. The performance criteria for all stock appreciation rights was met on April 30, 2018, resulting in the vesting of all outstanding stock appreciation rights. We recognized $1.5 of share-based compensation expense related to the vesting of these stock appreciation rights during the three months ended June 30, 2018. As of June 30, 2018, there were no remaining outstanding stock appreciation rights. Stock options awarded under the 2013 SIP vest either annually on a pro rata basis over a four- or five-year period or on a specific date if certain performance criteria are satisfied and certain equity values are attained. In addition, upon termination of service, all vested options must be exercised generally within 90 days after termination, or these awards will be forfeited. The stock option awards have a 10-year contractual term and have an exercise price that is not less than the fair market value of the underlying stock on the date of grant. As of June 30, 2018, there were 11,387,416 stock options and restricted stock units outstanding under the 2013 SIP. We do not intend to grant any awards under the 2007 SIP or the 2013 SIP following our IPO. On April 24, 2018, in connection with the IPO, the Board of Directors approved the Ceridian HCM Holding Inc. 2018 Equity Incentive Plan (“2018 EIP”), which authorizes the issuance of up to 13,500,000 shares of common stock to eligible participants through equity awards. Equity awards under the 2018 EIP vest annually on a pro rata basis, generally over a four-year period. In addition, upon termination of service, all vested awards must be exercised within 90 days after termination, or these awards will be forfeited. The equity awards have a 10-year contractual term and have an exercise price that is not less than the fair market value of the underlying stock on the date of the grant. As of June 30, 2018, there were 4,675,472 stock options and restricted stock units outstanding under the 2018 EIP. As of June 30, 2018, there were 8,824,528 shares available for future grants of stock options and stock awards under the 2018 EIP. Total share-based compensation expense was $12.0 and $4.3 for three months ended June 30, 2018, and 2017, respectively, and $14.7 and $8.5 for the six months ended June 30, 2018, and 2017. Performance-Based Stock Options Performance-based option activity under the 2007 SIP and the 2013 HCM SIP for the period was as follows:
|  | Shares |  |  | Weighted Average Exercise Price (per share) |  |  | Weighted Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value (in millions) |
Performance-based options outstanding at December 31, 2017 |  |  | 1,038,147 |  |  | $ | 13.46 |  |  |  | 3.5 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | (546,609 | ) |  |  | (13.46 | ) |  |  | — |  |  |  | — |
Forfeited or expired |  |  | (8,358 | ) |  |  | (13.46 | ) |  |  | — |  |  |  | — |
Performance-based options outstanding at June 30, 2018 |  |  | 483,180 |  |  | $ | 13.49 |  |  |  | 3.4 |  |  | $ | 9.5 |
Performance-based options exercisable at June 30, 2018 |  |  | 483,180 |  |  | $ | 13.49 |  |  |  | 3.4 |  |  | $ | 9.5 |
The performance criteria for all outstanding performance-based stock options was met on June 7, 2018, resulting in the vesting of all outstanding performance-based stock options on this date. We recognized $4.8 of share-based compensation expense related to the vesting of these performance-based stock options during the three months ended June 30, 2018. As of June 30, 2018, there was no share-based compensation expense related to unvested performance-based stock options not yet recognized. Term-Based Stock Options Term-based option activity, including stock options under the 2007 SIP, the 2013 HCM SIP and the 2018 EIP, for the period was as follows:
|  | Shares |  |  | Weighted Average Exercise Price (per share) |  |  | Weighted Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value (in millions) |
Term-based options outstanding at December 31, 2017 |  |  | 10,994,181 |  |  | $ | 16.52 |  |  |  | 6.9 |  |  | $ | 48.8 |
Granted |  |  | 4,822,517 |  |  |  | 21.96 |  |  |  | — |  |  |  | — |
Exercised |  |  | (623,511 | ) |  |  | (13.95 | ) |  |  | — |  |  |  | — |
Forfeited or expired |  |  | (136,434 | ) |  |  | (17.10 | ) |  |  | — |  |  |  | — |
Term-based options outstanding at June 30, 2018 |  |  | 15,056,753 |  |  | $ | 18.37 |  |  |  | 7.6 |  |  | $ | 223.1 |
Term-based options exercisable at June 30, 2018 |  |  | 7,364,017 |  |  | $ | 16.48 |  |  |  | 5.8 |  |  | $ | 123.1 |
As of June 30, 2018, there was $51.8 of share-based compensation expense related to unvested term based awards not yet recognized, which is expected to be recognized over a weighted average period of 2.0 years. As of June 30, 2018, there were 7,364,017 vested term-based stock options. Restricted Stock Units Restricted stock units (“RSUs”) activity, including RSUs under the 2013 HCM SIP and the 2018 EIP, for the period was as follows:
|  | Shares |
RSUs outstanding at December 31, 2017 |  |  | 605,990 |
Granted |  |  | 27,955 |
Shares issued upon vesting of RSUs |  |  | (105,990 | )
Forfeited or canceled |  |  | — |
RSUs outstanding at June 30, 2018 |  |  | 527,955 |
RSUs releasable at June 30, 2018 |  |  | 125,000 |
During the six months ended June 30, 2018, 27,955 restricted stock units were granted and 230,990 restricted stock units vested. Of the vested restricted stock units, 105,990 shares of common stock were issued, and 125,000 restricted stock units remained vested and releasable. As of June 30, 2018, there were 402,955 unvested restricted stock units outstanding. Restricted stock units generally vest annually over a three- or four-year period. There were 29,800 RSUs that vested upon completion of the IPO. As of June 30, 2018, there was $6.6 of share-based compensation expense related to unvested restricted stock units not yet recognized, which is expected to be recognized over a weighted average period of 2.8 years.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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