Stock-Based Compensation |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation and Employee Benefit Plans |
Stock-Based Compensation and Employee Benefit Plans
Refer to the Company’s Annual Report for a summary of the stock-based compensation and equity plans. There have been no material changes to such plans during the three months ended March 31, 2016.
Stock-Based Compensation
The Company uses the Black-Scholes valuation model to calculate the fair value of stock options and employee stock purchase rights granted to employees. The Company calculates the fair value of RSUs, and restricted stock awards, or RSAs, based on the fair market value of our Class A common stock on the grant date. The weighted-average grant date fair value per share of the RSUs and RSAs granted in the three months ended March 31, 2016 was $14.04. The weighted-average grant date fair value per share of the RSUs and RSAs granted in the three months ended March 31, 2015 was $8.22. No stock options were granted during the three months ended March 31, 2016 and 2015.
The Company recognized stock-based compensation in the consolidated statements of operations, based on the department to which the related employee reports, as follows:
The total unrecognized compensation cost related to unvested stock options as of March 31, 2016 was $1.3 million, and the weighted average period over which these equity awards are expected to vest is 1.18 years. The total unrecognized compensation cost related to unvested RSUs and RSAs as of March 31, 2016 was $30.7 million, and the weighted average period over which these equity awards are expected to vest is 2.63 years.
The Company records equity instruments issued to non-employees as expense at their fair value over the related service period as determined in accordance with the authoritative guidance and periodically revalues the equity instruments as they vest. Stock-based compensation expense related to non-employee consultants totaled $0.1 million in the three months ended March 31, 2016 and 2015.
In connection with the acquisition of Entropic, the Company assumed stock options and RSUs originally granted by Entropic. Stock-based compensation expense in the three months ended March 31, 2016 included $0.3 million in assumed Entropic stock options and RSUs.
Employee Incentive Bonus
At March 31, 2016, an accrual of $3.5 million was recorded for bonus awards for employees for the July 1, 2015 - December 31, 2015 performance period, which the Company intends to settle in shares of its Class A common stock issued in May 2016 under its 2010 Equity Incentive Plan, as amended, with the number of shares issuable to plan participants determined based on the closing sales price of the Company’s Class A common stock as determined in trading on the New York Stock Exchange at a date to be determined. The Company's compensation committee retains discretion to effect payment in cash, stock, or a combination of cash and stock.
Restricted Stock Units and Restricted Stock Awards
The Company calculates the fair value of restricted stock units and restricted stock awards based on the fair market value of the Company’s Class A common stock on the grant date. Stock-based compensation expense is recognized over the vesting period using the straight-line method and is classified in the consolidated statements of operations based on the department to which the related employee reports.
A summary of the Company’s restricted stock unit and restricted stock award activity is as follows:
The intrinsic value of restricted stock units and restricted stock awards vested during the three months ended March 31, 2016 was $71.4 million. The intrinsic value of restricted stock units and restricted stock awards outstanding at March 31, 2016 was $7.4 million.
Shares Reserved for Future Issuance
As of March 31, 2016, common stock reserved for future issuance is as follows:
On January 1, 2016, 2.5 million shares of Class A common stock were automatically added to the shares authorized for issuance under the 2010 Equity Incentive Plan pursuant to an “evergreen” provision contained in the 2010 Equity Incentive Plan. In addition, 0.8 million shares of Class A common stock were automatically added to the shares authorized for issuance under the 2010 Employee Stock Purchase Plan pursuant to an “evergreen” provision contained in the 2010 Employee Stock Purchase Plan.
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