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Stock-Based Compensation
9 Months Ended
Sep. 30, 2019
Stock-Based Compensation [Abstract]  
Stock-Based Compensation Note 10. Stock-Based Compensation

We recognized stock-based compensation expense of $2 million ($2 million, net of tax) and $1 million ($1 million, net of tax) for the three months ended September 30, 2019 and 2018, respectively, and $7 million ($5 million, net of tax) and $3 million ($2 million, net of tax) for the nine months ended September 30, 2019 and 2018, respectively. These charges are included in Selling and administrative expenses in the accompanying condensed consolidated and combined statements of operations and comprehensive income.

As of September 30, 2019, there was $20 million of total unrecognized compensation costs related to unvested stock options, restricted stock units (“RSUs”) and performance shares granted under the Omnibus Plan. These remaining costs are expected to be recognized over a weighted-average period of 2.72 years.

On March 21, 2019, our board of directors approved and recommended for approval by our stockholders the ESPP, which was approved by our stockholders on April 29, 2019 and became effective for offering periods commencing July 1, 2019. The ESPP is intended to qualify for favorable tax treatment under Section 423 of the Code. Under the plan, eligible employees of the Company may purchase common stock, subject to IRS limits, during pre-specified offering periods at a discount established by Frontdoor not to exceed 15 percent of the then current fair market value. A maximum of 1,250,000 shares of our common stock are authorized for sale under the plan.