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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-Based Compensation Plans The Company maintains the 2010 Omnibus Long-Term Incentive Plan (As Amended and Restated Effective July 27, 2017), the 2019 Omnibus Long-Term Incentive Plan, the 2010 Employee Stock Purchase Plan, and the 2016 Inducement Award Plan (collectively, the “Stock Plans”). Stock-Based Compensation Expense The Company records stock-based compensation expense in connection with the amortization of restricted stock and restricted stock unit awards (“RSUs”), stock purchase rights granted under the Company’s employee stock purchase plan and stock options granted to employees, non-employee consultants and non-employee directors. The Company recorded $63.6 million and $41.5 million in stock-based compensation expense during the three months ended September 30, 2021 and 2020, respectively. The Company recorded $283.3 million and $111.1 million in stock-based compensation expense during the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, there was $401.6 million of expected total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all equity compensation plans. The Company expects to recognize that cost over a weighted average period of 2.8 years. In connection with the acquisition of Thrive, the Company accelerated the vesting of shares of previously unvested stock options and restricted stock units for employees with qualifying termination events. During the three months ended September 30, 2021, the Company accelerated 34,167 shares of previously unvested stock options and 24,865 shares of previously unvested restricted stock awards and restricted stock units and recorded $4.5 million of non-cash stock-based compensation for the accelerated awards. During the nine months ended September 30, 2021, the Company accelerated 138,163 shares of previously unvested stock options and 58,171 shares of previously unvested restricted stock awards and restricted stock units and recorded $19.0 million of non-cash stock-based compensation for the accelerated awards. As further discussed in Note 17, the Company also recorded $86.2 million in stock-based compensation related to accelerated vesting of awards held by Thrive employees in connection with the acquisition. Stock Options The Company determines the fair value of each service-based option award on the date of grant using the Black-Scholes option-pricing model, which utilizes several key assumptions which are disclosed in the following table:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Option Plan Shares |  |  |  |  |  |  |  |
Risk-free interest rates |  | (1) |  | (1) |  | (1) |  | 0.11% - 1.47%
Expected term (in years) |  | (1) |  | (1) |  | (1) |  | 0.25 - 6.15
Expected volatility |  | (1) |  | (1) |  | (1) |  | 44.19% - 77.51%
Dividend yield |  | (1) |  | (1) |  | (1) |  | —%
______________ (1)The Company did not grant stock options under its 2010 Omnibus Long-Term Incentive Plan or 2019 Omnibus Long-Term Incentive Plan during the period. A summary of stock option activity under the Stock Plans is as follows:
Options |  | Shares |  | Weighted Average Exercise Price (1) |  | Weighted Average Remaining Contractual Term(Years) |  | Aggregate Intrinsic Value(2)
(Aggregate intrinsic value in thousands) |  |  |  |  |  |  |  |
Outstanding, January 1, 2021 |  | 2,231,059 |  |  | $ | 39.67 |  |  | 6.0 |  |
Granted |  | — |  |  | — |  |  |  |  |
Assumed through acquisition |  | 1,393,748 |  |  | 5.51 |  |  |  |  |
Exercised |  | (1,208,355) |  |  | 11.09 |  |  |  |  |
Forfeited |  | (36,909) |  |  | 62.85 |  |  |  |  |
Outstanding, September 30, 2021 |  | 2,379,543 |  |  | $ | 33.81 |  |  | 5.6 |  | $ | 147,337 |
Vested and expected to vest, September 30, 2021 |  | 2,379,543 |  |  | $ | 33.81 |  |  | 5.6 |  | $ | 147,337 |
Exercisable, September 30, 2021 |  | 1,816,492 |  |  | $ | 25.17 |  |  | 4.9 |  | $ | 127,826 |
______________ (1)The weighted average grant date fair value of options granted during the nine months ended September 30, 2020 was $58.57. (2)The total intrinsic value of options exercised during the nine months ended September 30, 2021 and 2020 was $148.8 million and $29.0 million, respectively, determined as of the date of exercise. The Company received approximately $13.4 million and $15.4 million from stock option exercises during the nine months ended September 30, 2021 and 2020, respectively. Restricted Stock and Restricted Stock Units The fair value of restricted stock and restricted stock units is determined on the date of grant using the closing stock price on that day. A summary of restricted stock and restricted stock unit activity during the nine months ended September 30, 2021 is as follows:
Restricted stock and restricted stock units |  | Shares |  | Weighted Average Grant Date Fair Value (2)
Outstanding, January 1, 2021 |  | 3,968,214 |  |  | $ | 79.50 |
Granted |  | 2,084,705 |  |  | 133.80 |
Assumed through acquisition |  | 242,123 |  |  | 127.79 |
Released (1) |  | (1,582,760) |  |  | 72.28 |
Forfeited |  | (406,201) |  |  | 99.94 |
Outstanding, September 30, 2021 |  | 4,306,081 |  |  | $ | 109.23 |
______________ (1)The fair value of restricted stock units vested and converted to shares of the Company’s common stock was $114.4 million and $79.1 million during the nine months ended September 30, 2021 and 2020, respectively. (2)The weighted average grant date fair value of the restricted stock units granted during the nine months ended September 30, 2020 was $90.95. Performance Share Units The Company has issued performance-based equity awards to certain employees which vest upon the achievement of certain performance goals, including financial performance targets and operational milestones. A summary of performance share-based compensation arrangements granted under all equity compensation unit activity is as follows:
Performance share units |  | Shares (1) |  | Weighted Average Grant Date Fair Value (2)
Outstanding, January 1, 2021 |  | 618,515 |  |  | $ | 93.22 |
Granted |  | 253,120 |  |  | 140.96 |
Released |  | — |  |  | — |
Forfeited |  | (8,991) |  |  | 68.23 |
Outstanding, September 30, 2021 |  | 862,644 |  |  | $ | 107.49 |
______________ (1)The performance share units listed above assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of September 30, 2021 was 249,695. (2)The weighted average grant date fair value of the performance share units granted during the nine months ended September 30, 2020 was $90.17. Employee Stock Purchase Plan (“ESPP”) The fair value of ESPP shares is based on the assumptions in the following table:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
ESPP Shares |  |  |  |  |  |  |  |
Risk-free interest rates |  | (1) |  | (1) |  | 0.04% - 0.16% |  | 0.12% - 0.20%
Expected term (in years) |  | (1) |  | (1) |  | 0.5 - 2 |  | 0.5 - 2
Expected volatility |  | (1) |  | (1) |  | 48.38% - 68.51% |  | 63.67% - 89.04%
Dividend yield |  | (1) |  | (1) |  | —% |  | —%
______________ (1)The Company did not issue stock purchase rights under its 2010 Employee Stock Purchase Plan during the three months ended September 30, 2021 and 2020, respectively.

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