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STOCK-BASED COMPENSATION | 6 Months Ended
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Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 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):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Cost of revenue | $ | 24 |  |  | $ | 7 |  |  | $ | 44 |  |  | $ | 13 |
Selling and marketing expense | 385 |  |  | 226 |  |  | 655 |  |  | 459 |
General and administrative expense | 1,125 |  |  | 928 |  |  | 2,731 |  |  | 1,989 |
Product development | 385 |  |  | 260 |  |  | 825 |  |  | 576 |
Restructuring and severance | 138 |  |  | — |  |  | 138 |  |  | 36 |
Total non-cash compensation | $ | 2,057 |  |  | $ | 1,421 |  |  | $ | 4,393 |  |  | $ | 3,073 |
Stock Options A summary of 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)
Options outstanding at January 1, 2015 | 2,136,679 |  |  | $ | 18.16 |  |  |  |  |  |
Granted (b) | 38,131 |  |  | 58.49 |  |  |  |  |  |
Exercised | (128,666 | ) |  | 16.79 |  |  |  |  |  |
Forfeited | (775 | ) |  | 53.04 |  |  |  |  |  |
Expired | (1,339 | ) |  | 7.88 |  |  |  |  |  |
Options outstanding at June 30, 2015 | 2,044,030 |  |  | 18.99 |  |  | 6.52 |  | $ | 121,867 |
Options exercisable at June 30, 2015 | 937,796 |  |  | $ | 8.63 |  |  | 3.97 |  | $ | 65,628 |
(a) | The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $78.61 on the last trading day of the quarter ended June 30, 2015 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 June 30, 2015. The intrinsic value changes based on the market value of the Company's common stock.
(b) | During the six months ended June 30, 2015, the Company granted stock options to certain employees and the board of directors with a weighted average grant date fair value per share of $22.98, which vesting periods include (a) three years from the grant date, (b) 25% and 75% over a period of 1.67 years and 2.67 years, respectively, and (c) 2 years from the grant date.
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:
Expected term (1) | 6.23 - 5.75 years |
Expected dividend (2) | — |
Expected volatility (3) | 38% |
Risk-free interest rate (4) | 1.66% - 2.01% |
(1) | 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.
(2) | For all stock options granted in 2015, 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.
(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.
Restricted Stock Units and Restricted Stock A summary of the changes in outstanding nonvested restricted stock units ("RSUs") and restricted stock is as follows:
| RSUs
| Number of Units |  | Weighted Average Grant Date Fair Value
|  |  | (per unit)
Nonvested at January 1, 2015 | 351,801 |  |  | $ | 22.83 |
Granted | 78,362 |  |  | 54.93 |
Vested | (147,880 | ) |  | 21.02 |
Forfeited | (20,458 | ) |  | 31.67 |
Nonvested at June 30, 2015 | 261,825 |  |  | $ | 32.77 |
| Restricted Stock
| Number of Shares |  | Weighted Average Grant Date Fair Value
|  |  | (per share)
Nonvested at January 1, 2015 | 123,057 |  |  | $ | 23.41 |
Granted | — |  |  | — |
Vested | (35,295 | ) |  | 20.62 |
Forfeited | — |  |  | — |
Nonvested at June 30, 2015 | 87,762 |  |  | $ | 24.54 |

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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 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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