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STOCK-BASED COMPENSATION (Tables) | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [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 (loss) (in thousands):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Cost of revenue | $ | 1,319 |  |  | $ | 755 |  |  | $ | 378 |
Selling and marketing expense | 6,240 |  |  | 5,785 |  |  | 3,568 |
General and administrative expense | 39,650 |  |  | 39,177 |  |  | 34,325 |
Product development | 6,524 |  |  | 6,450 |  |  | 6,094 |
Total non-cash compensation | $ | 53,733 |  |  | $ | 52,167 |  |  | $ | 44,365 |
Summary of changes in outstanding 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)
Outstanding at December 31, 2019 | 777,871 |  |  | $ | 69.87 |  |  |  |  |
Granted | 203,582 |  |  | 290.27 |  |  |  |  |
Exercised | (47,630) |  |  | 161.25 |  |  |  |  |
Forfeited | (5,396) |  |  | 285.56 |  |  |  |  |
Expired | (3,717) |  |  | 221.99 |  |  |  |  |
Outstanding at December 31, 2020 | 924,710 |  |  | $ | 111.82 |  |  | 4.47 |  | $ | 155,411 |
Options exercisable | 663,239 |  |  | $ | 44.49 |  |  | 2.63 |  | $ | 153,243 |
(a)The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $273.79 on the last trading day of 2020 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on December 31, 2020. The intrinsic value changes based on the market value of the Company's common stock. A summary of changes in outstanding stock options with market conditions at target is as follows:
| Number of Options with Market Conditions |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value(a)
|  |  | (per option) |  | (in years) |  | (in thousands)
Outstanding at December 31, 2019 | 463,440 |  |  | $ | 204.31 |  |  |  |  |
Granted | 236,769 |  |  | 298.05 |  |  |  |  |
Exercised | — |  |  | — |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |
Expired | — |  |  | — |  |  |  |  |
Outstanding at December 31, 2020 | 700,209 |  |  | $ | 236.01 |  |  | 7.75 |  | $ | 36,238 |
Options exercisable | — |  |  | $ | — |  |  | 0 |  | $ | — |
(a)The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $273.79 on the last trading day of 2020 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on December 31, 2020. 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, except the December 2020 grant to the Chairman and Chief Executive Officer described below, 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,
| 2020 | 2019 | 2018
Expected term (1) | 5.00 - 6.25 years | 5.00 - 6.25 years | 5.00 - 6.71 years
Expected dividend (2) | — |  | — |  | — |
Expected volatility (3) | 52% - 60% | 51% - 55% | 50% - 53%
Risk-free interest rate (4) | 0.33% - 0.96% | 1.46% - 2.55% | 2.33% - 3.06%
(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 during the years ended December 31, 2020, 2019 and 2018, 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. For purposes of determining stock-based compensation expense, the weighted-average grant date fair value per share of the stock options with a market condition was estimated using the Monte Carlo simulation model, which requires the use of various key assumptions. The weighted-average assumptions used for single cliff-vesting stock options with a market condition are as follows:
| Year Ended December 31,
| 2020 | 2019 | 2018
Expected term (1) | 7.00 years | 7.00 years | 7.00 - 7.15 years
Expected dividend (2) | — |  | — |  | — |
Expected volatility (3) | 51 | % | 51 | % | 50 | %
Risk-free interest rate (4) | 1.03 | % | 2.54% | 2.38% - 2.81%
(1)The expected term of stock options with a market condition granted was calculated using the midpoint between the weighted average time of vesting and the end of the contractual term. (2)For all stock options with a market condition granted during the years ended December 31, 2020, 2019 and 2018, 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.
Schedule of changes in outstanding non-vested RSUs, restricted stock and RSUs with performance conditions | A summary of changes in outstanding nonvested RSUs is as follows:
| RSUs
| Number of Units |  | Weighted Average Grant Date Fair Value
|  |  | (per unit)
Nonvested at December 31, 2019 | 144,939 |  |  | $ | 267.85 |
Granted (a) | 138,418 |  |  | 286.42 |
Vested | (70,698) |  |  | 239.15 |
Forfeited | (17,973) |  |  | 285.95 |
Nonvested at December 31, 2020 | 194,686 |  |  | $ | 289.82 |
(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 grant. A summary of changes in outstanding nonvested RSUs with performance conditions is as follows:
| RSUs with Performance Conditions |  |
| Number of Units |  | Weighted Average Grant Date Fair Value |  |  |  |
|  |  | (per unit) |  |  |  |
Nonvested at December 31, 2019 | 14,647 |  |  | $ | 210.55 |  |  |  |  |
Granted | — |  |  | — |  |  |  |  |
Vested | (8,319) |  |  | 200.40 |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |
Nonvested at December 31, 2020 | 6,328 |  |  | $ | 223.90 |  |  |  |  |
A summary of changes in outstanding nonvested RSAs with performance conditions is as follows:
| RSAs with Performance Conditions
| Number of Awards |  | Weighted Average Grant Date Fair Value
|  |  | (per unit)
Nonvested at December 31, 2019 | 47,608 |  |  | $ | 340.25 |
Granted | — |  |  | — |
Vested | (23,804) |  |  | 340.25 |
Forfeited | — |  |  | — |
Nonvested at December 31, 2020 | 23,804 |  |  | $ | 340.25 |
A summary of changes in outstanding nonvested RSAs with market conditions at target is as follows:
| RSAs with Market Conditions
| Number of Awards |  | Weighted Average Grant Date Fair Value
|  |  | (per unit)
Nonvested at December 31, 2019 | 26,674 |  |  | $ | 340.25 |
Granted | — |  |  | — |
Vested | — |  |  | — |
Forfeited | — |  |  | — |
Nonvested at December 31, 2020 | 26,674 |  |  | $ | 340.25 |

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