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Equity Plans and Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2017
Share Based Compensation [Abstract] |
Equity Plans and Stock-Based Compensation | 8. Equity Plans and Stock-Based Compensation Option activity under our stock-based compensation plans during the nine months ended September 30, 2017 was as follows (in thousands except per share amounts):
|  | Shares Underlying Outstanding Options (in thousands) |  |  | Weighted-Average Exercise Price Per Share |  |  | Weighted-Average Remaining Contractual Term (years) |  |  | Aggregate Intrinsic Value (in thousands) |
Balance at December 31, 2016 |  |  | 3,975 |  |  | $ | 21.38 |  |  |  |  |  |  |  |  |
Options granted |  |  | 329 |  |  | $ | 6.99 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (50 | ) |  | $ | 11.82 |  |  |  |  |  |  |  |  |
Options cancelled: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options forfeited (unvested) |  |  | (351 | ) |  | $ | 18.43 |  |  |  |  |  |  |  |  |
Options cancelled (vested) |  |  | (217 | ) |  | $ | 29.11 |  |  |  |  |  |  |  |  |
Balance at September 30, 2017 |  |  | 3,686 |  |  | $ | 20.05 |  |  |  | 5.79 |  |  | $ | 13,420 |
Vested and expected to vest at September 30, 2017 |  |  | 3,671 |  |  | $ | 20.06 |  |  |  | 5.79 |  |  | $ | 13,390 |
Exercisable at September 30, 2017 |  |  | 2,394 |  |  | $ | 22.18 |  |  |  | 5.40 |  |  | $ | 5,948 |
In June 2017, stockholders of the Company approved a proposal to increase the aggregate number of shares of common stock authorized for issuance under the 2011 Equity Incentive Plan, as amended, by 1,600,000 shares. Restricted stock unit activity under our stock-based compensation plans during the nine months ended September 30, 2017 was as follows (in thousands except per share amounts):
| Number of Shares (In thousands) |  |  | Weighted-Average Grant-Date Fair Value |
Non-vested as of December 31, 2016 |  | 699 |  |  | $ | 12.12 |
Granted |  | 2,136 |  |  |  | 4.83 |
Vested |  | (171 | ) |  |  | 18.62 |
Forfeited or expired |  | (221 | ) |  |  | 8.44 |
Non-vested as of September 30, 2017 |  | 2,443 |  |  | $ | 5.62 |
The aggregate intrinsic value of the restricted stock units outstanding as of September 30, 2017, based on our stock price on that date, was $52.5 million. Fair value of restricted stock units is determined at the date of grant using our closing stock price. As of September 30, 2017, approximately 21,000 shares underlying stock options and approximately 63,000 restricted stock unit awards with performance-based vesting criteria were outstanding. Vesting criteria for these restricted stock units awards with performance-based awards were not probable as of September 30, 2017. Under our stock-based compensation plans, option awards generally vest over a three or four-year period contingent upon continuous service, and expire seven to ten years from the date of grant (or earlier upon termination of continuous service). The fair value-based measurement of each option is estimated on the date of grant using the Black-Scholes option valuation model. The fair value-based measurements and weighted-average assumptions used in the calculations of these measurements are as follows:
| Stock Options |  |  | Stock Options |  |  | Employee Stock Purchase Plan |
| Three Months Ended |  |  | Nine Months Ended |  |  | Nine Months Ended |
| September 30, |  |  | September 30, |  |  | September 30, |
| 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Weighted-average fair value | $ | 8.11 |  |  | $ | 8.90 |  |  | $ | 4.73 |  |  | $ | 9.67 |  |  | $ | 3.05 |  |  | $ | 7.86 |
Risk-free interest rate |  | 1.9 | % |  |  | 1.1 | % |  |  | 1.9 | % |  |  | 1.4 | % |  |  | 1.0 | % |  |  | 0.6 | %
Expected life (in years) |  | 4.5 |  |  |  | 4.5 |  |  |  | 4.5 |  |  |  | 4.9 |  |  |  | 1.2 |  |  |  | 1.2 |
Volatility |  | 0.9 |  |  |  | 0.7 |  |  |  | 0.9 |  |  |  | 0.7 |  |  |  | 1.0 |  |  |  | 0.6 |
Compensation expense is based on awards ultimately expected to vest and reflects estimated forfeitures. The components of stock-based compensation expense were (in thousands):
| Three Months Ended |  |  | Nine Months Ended |
| September 30, |  |  | September 30, |
| 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Research and development | $ | 1,973 |  |  | $ | 1,639 |  |  | $ | 5,707 |  |  | $ | 4,490 |
General and administrative |  | 1,687 |  |  |  | 2,022 |  |  |  | 5,137 |  |  |  | 5,540 |
Total | $ | 3,660 |  |  | $ | 3,661 |  |  | $ | 10,844 |  |  | $ | 10,030 |
As of September 30, 2017, the total unrecognized compensation cost related to non-vested equity awards including all awards with time-based vesting amounted to $22.0 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.7 years. Additionally, as of September 30, 2017, the total unrecognized compensation cost related to equity awards with performance-based vesting criteria not deemed probable of vesting amounted to $0.4 million. Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan, as amended, (the “Purchase Plan”) provides for the purchase of common stock by eligible employees and became effective on May 28, 2014. The purchase price per share is the lesser of (i) 85% of the fair market value of the common stock on the commencement of the offer period (generally, the sixteenth day in February or August) or (ii) 85% of the fair market value of the common stock on the exercise date, which is the last day of a purchase period (generally, the fifteenth day in February or August). For the nine months ended September 30, 2017, employees have acquired 84,247 shares of our common stock under the Purchase Plan and 98,227 shares of our common stock remained available for future purchases under the Purchase Plan.

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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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