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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company provides equity-based compensation awards to employees, independent contractors and directors as an effective means for attracting, retaining and motivating such individuals. The Company maintains two share-based compensation plans: the 2014 Plan and the 2008 Stock Incentive Plan (the “2008 Plan”). Upon the effective date of the 2014 Plan in January 2014, the Company ceased using the 2008 Plan to grant new equity awards and began using the 2014 Plan for grants of new equity awards. Employee Stock Purchase Plan The Company’s 2017 Employee Stock Purchase Plan (the “ESPP”) provides (i) for two offering periods each year and (ii) that the purchase price for shares of the Company’s common stock purchased under the ESPP will be 90% of the lesser of the fair market value of 2U’s common stock on the purchase date or the fair market value of 2U’s common stock on the first day of the offering period. Participating eligible employees select a rate of payroll deduction between 1% and 15% of their salary or wage compensation received from the Company as in effect at the start of the offering period, subject to a maximum payroll deduction per calendar year of $25,000. Participation in the ESPP began on January 1, 2018. Stock-Based Compensation Expense Stock-based compensation expense related to stock-based awards, as well as the ESPP, is included in the following line items in the condensed consolidated statements of operations and comprehensive loss:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (in thousands)
Curriculum and teaching | $ | 3 |  |  | $ | 2 |  |  | $ | 10 |  |  | $ | 2 |
Servicing and support | 1,346 |  |  | 1,100 |  |  | 3,538 |  |  | 2,956 |
Technology and content development | 1,089 |  |  | 904 |  |  | 2,875 |  |  | 2,447 |
Marketing and sales | 839 |  |  | 463 |  |  | 2,046 |  |  | 1,235 |
General and administrative | 4,656 |  |  | 3,678 |  |  | 15,595 |  |  | 8,897 |
Total stock-based compensation expense | $ | 7,933 |  |  | $ | 6,147 |  |  | $ | 24,064 |  |  | $ | 15,537 |
Stock Options The following is a summary of the stock option activity for the nine months ended September 30, 2018:
| Number of Options |  | Weighted-Average Exercise Price per Share
Outstanding balance at December 31, 2017 | 4,559,176 |  |  | $ | 15.10 |
Granted | 663,615 |  |  | 84.13 |
Exercised | (1,000,574 | ) |  | 7.03 |
Forfeited | (124,737 | ) |  | 41.20 |
Expired | — |  |  | — |
Outstanding balance at September 30, 2018 | 4,097,480 |  |  | 27.45 |
Exercisable at September 30, 2018* | 2,814,863 |  |  | 13.34 |
* | As of September 30, 2018, the aggregate intrinsic value of options exercisable was $174.2 million and such shares had a weighted-average remaining contractual term of 5.08 years.
Restricted Stock Units The following is a summary of restricted stock unit activity for the nine months ended September 30, 2018:
| Number of Restricted Stock Units |  | Weighted- Average Grant Date Fair Value
Outstanding balance at December 31, 2017 | 1,413,423 |  |  | $ | 29.95 |
Granted | 523,281 |  |  | 81.74 |
Vested | (585,799 | ) |  | 25.54 |
Forfeited | (133,744 | ) |  | 43.98 |
Outstanding balance at September 30, 2018 | 1,217,161 |  |  | 52.80 |

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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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