Stock-Based Plans

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Plans

Stock-Based Plans

Stock Option Activity

The following table summarizes stock option activity for the nine months ended September 30, 2016:  

	Options
	(In millions)
Outstanding as of January 1, 2016	7
Granted and assumed	—
Exercised	(1	)
Forfeited/expired/canceled	(1	)
Outstanding as of September 30, 2016	5

Restricted Stock Unit Activity

The following table summarizes restricted stock unit (“RSU”) activity for the nine months ended September 30, 2016:

	Units
	(In millions)
Outstanding as of January 1, 2016	36
Awarded and assumed	27
Vested	(13	)
Forfeited	(5	)
Outstanding as of September 30, 2016	45

The weighted average grant date fair value for RSUs awarded during the nine months ended September 30, 2016 was $24.21 per share.

Stock-Based Compensation Expense

The impact on our results of operations of recording stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(In millions)
Cost of net revenues	$	9	$	10	$	26	$	28
Sales and marketing	24		28		71		75
Product development	40		29		115		83
General and administrative	32		26		94		115
Total stock-based compensation expense	$	105	$	93	$	306	$	301
Capitalized in product development	$	3	$	3	$	9	$	9

Stock Option Valuation Assumptions

We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. Our computation of expected volatility is based on a combination of historical and market-based implied volatility from traded options on our common stock. Our computation of expected life is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.

No stock options were granted during the three months ended September 30, 2016 and an immaterial amount of stock options were granted during the nine months ended September 30, 2016. The weighted average assumptions used for stock option grants during the three and nine months ended September 30, 2015 were as follows:  

	Three Months Ended September 30,		Nine Months Ended September 30,
	2015		2015
Risk-free interest rate	1.47	%	1.39	%
Expected life (in years)	4.4		4.1
Dividend yield	—	%	—	%
Expected volatility	26	%	27	%