Employee Benefit Plans

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Restricted Stock Unit Activity

During the second quarter of 2020, our Chief Executive Officer was granted total shareholder return performance stock units (“TSR PSUs”) with performance and time-based vesting requirements. The number of stock units ultimately received will depend on our total shareholder return relative to that of the S&P 500 index over two and three year measurement periods. The target number of shares will be divided into two tranches, with each tranche corresponding to 50% of the target shares. The first tranche will vest in full on the second anniversary of the grant date and second tranche will vest on the third anniversary of the grant date.

The following table presents restricted stock unit (“RSU”) activity under our equity incentive plans as of and for the nine months ended September 30, 2020 (in millions):  

	Units (1)
Outstanding as of January 1, 2020	28
Awarded	15
Vested	(9)
Forfeited	(7)
Outstanding as of September 30, 2020	27

(1) Activity presented is inclusive of units granted to employees of our Classifieds business

The weighted average grant date fair value for RSUs awarded during the nine months ended September 30, 2020 was $32.27 per share.

Stock-Based Compensation Expense

The impact on our results of continuing operations of recording stock-based compensation expense was as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cost of net revenues	$	11	$	11	$	32	$	35
Sales and marketing	24		19		60		56
Product development	38		41		116		127
General and administrative	40		26		103		103
Total stock-based compensation expense	$	113	$	97	$	311	$	321
Capitalized in product development	$	3	$	4	$	11	$	10