XML 47 R31.htm IDEA: XBRL DOCUMENT
v2.4.1.9

STOCK-BASED COMPENSATION (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Schedule of non-cash compensation expense related to equity awards | Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Cost of revenue | $ | 32 |  |  | $ | 13 |  |  | $ | 6 |
Selling and marketing expense | 901 |  |  | 931 |  |  | 750 |
General and administrative expense | 5,148 |  |  | 3,841 |  |  | 3,205 |
Product development | 1,196 |  |  | 842 |  |  | 626 |
Restructuring and severance | 169 |  |  | — |  |  | — |
Total non-cash compensation | $ | 7,446 |  |  | $ | 5,627 |  |  | $ | 4,587 |
Summary of changes in outstanding stock options | A summary of the changes in outstanding stock options is as follows:
| Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value(a)
|  |  | (per option) |  | (in years) |  | (in thousands)
Outstanding at December 31, 2013 | 1,038,999 |  |  | $ | 8.98 |  |  |  |  |  |
Granted | 1,106,791 |  |  | 26.73 |  |  |  |  |  |
Exercised | (8,361 | ) |  | 13.58 |  |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |  |
Expired | (750 | ) |  | 13.04 |  |  |  |  |  |
Outstanding at December 31, 2014 | 2,136,679 |  |  | $ | 18.16 |  |  | 6.43 |  | $ | 64,492 |
Options exercisable | 983,107 |  |  | $ | 9.07 |  |  | 3.63 |  | $ | 38,602 |
(a) | The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $48.34 on the last trading day of 2014 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. The intrinsic value changes based on the market value of the Company's common stock.
Summary of stock option valuation assumptions | For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the stock options was estimated using the Black-Scholes option pricing model, which requires the use of various key assumptions. The weighted average assumptions used are as follows:
| Year Ended December 31,
| 2014 | 2012
Expected term (1) | 5.75 - 6.63 years |  | 7.0 years |
Expected dividend (2) | — |  | — |
Expected volatility (3) | 36% - 64% |  | 45 | %
Risk-free interest rate (4) | 1.81% - 2.13% |  | 2.0 | %
(1) | For the year ended December 31, 2014, the expected term of stock options granted was calculated using the 'Simplified Method', which utilizes the midpoint between the weighted average time of vesting and the end of the contractual term. This method was utilized for the stock options due to a lack of historical exercise behavior by the Company's employees. For the year ended December 31, 2012, the expected term of stock options granted was based on analyses of historical employee termination rates and option exercise patterns, giving consideration to expectations of future employee behavior.
(2) | For all stock options granted during the years ended December 31, 2014 and 2012, no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate.
(3) | The expected volatility rate is based on the historical volatility of the Company's common stock or a blended rate which includes the historical volatility of the Company's common stock and that of a peer group.
(4) | The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date.
Schedule of changes in outstanding non-vested RSUs, RSUs with a performance condition, restricted stock and restricted stock with a market condition | Restricted Stock Units A summary of the changes in outstanding nonvested RSUs is as follows:
| RSUs |  | RSUs Performance Condition
| Number of Units |  | Weighted Average Grant Date Fair Value |  | Number of Units |  | Weighted Average Grant Date Fair Value
|  |  | (per unit) |  |  |  | (per unit)
Nonvested at December 31, 2013 | 599,122 |  |  | $ | 14.15 |  |  | — |  |  | $ | — |
Granted (a) | 135,607 |  |  | 32.33 |  |  | 500 |  |  | 33.59 |
Vested | (328,681 | ) |  | 12.08 |  |  | (500 | ) |  | 33.59 |
Forfeited | (54,247 | ) |  | 16.31 |  |  | — |  |  | — |
Nonvested at December 31, 2014 | 351,801 |  |  | $ | 22.83 |  |  | — |  |  | $ | — |
(a) | The grant date fair value per share of the RSUs is calculated as the closing market price of LendingTree's common stock at the time of the grant.
The total fair value of RSUs that vested during the years ended December 31, 2014, 2013 and 2012 was $11.0 million, $7.5 million and $4.3 million, respectively. The total fair value of RSUs with a performance condition that vested during the year ended December 31, 2014 was $22,000. Restricted Stock A summary of the changes in outstanding nonvested restricted stock is as follows:
| Restricted Stock |  | Restricted Stock Market Condition
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value
|  |  | (per share) |  |  |  | (per share)
Nonvested at December 31, 2013 | 119,500 |  |  | $ | 22.47 |  |  | 62,500 |  |  | $ | 13.93 |
Granted (a)(b) | 43,389 |  |  | 25.14 |  |  | — |  |  | — |
Vested | (39,832 | ) |  | 22.47 |  |  | (62,500 | ) |  | 13.93 |
Forfeited | — |  |  | — |  |  | — |  |  | — |
Nonvested at December 31, 2014 | 123,057 |  |  | $ | 23.41 |  |  | — |  |  | $ | — |
(a) | The grant date fair value per share of the restricted stock is calculated as the closing market price of LendingTree's common stock at the time of grant.
(b) | The grant date fair value per share of the restricted stock with an underlying market condition was calculated using a Monte Carlo simulation model. These shares vest based on the achievement of a market-based performance target within three years, but not earlier than one year from the grant date. The fair value on grant date is recognized over the requisite service period.
The total fair value of restricted stock that vested during the years ended December 31, 2014, 2013 and 2012 was $1.5 million, $3.2 million and $0.8 million, respectively. The total fair value of restricted stock with a market condition that vested during the year ended December 31, 2014 was $2.1 million.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 14.F) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 -Section F Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of the number and weighted-average grant date fair value for restricted stock and restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock and restricted stock units that were granted, vested, or forfeited during the year. + References No definition available. + Details
Name: | us-gaap_ScheduleOfSharebasedCompensationRestrictedStockAndRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the number and weighted-average exercise prices (or conversion ratios) for share options (or share units) that were outstanding at the beginning and end of the year, vested and expected to vest, exercisable or convertible at the end of the year, and the number of share options or share units that were granted, exercised or converted, forfeited, and expired during the year. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration