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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Total stock-based compensation expense in the Company’s unaudited Consolidated Statements of Income related to the Company’s long-term incentive award plans was as follows (in thousands):


	Three Months Ended March 31,
	2020		2019
Cost of services-compensation	$	3,849	$	4,124
Selling, general and administrative	9,661		6,855
Total	$	13,510	$	10,979

Summary of Stock Option Activity

Presented below is a summary of stock option activity for the three months ended March 31, 2020 (in thousands, except for weighted average exercise price and weighted average remaining contractual terms):


	Number of Options	Weighted Average Exercise Price		Weighted Average- Remaining Contractual Terms	Aggregate Intrinsic Value
Outstanding balance at December 31, 2019	2,411	$	23.43
Granted	1,028	27.34
Exercised	(14)	8.97
Forfeitures	—	—
Expired	—	—
Outstanding balance at March 31, 2020	3,425	$	24.68	7.93	$	12,430
Expected to vest at March 31, 2020	1,363	$	28.72	9.34	$	1,267
Exercisable at March 31, 2020	1,613	$	20.31	6.42	$	10,612

Schedule of Estimated Fair Value of Stock Option Grants

HMS estimated the fair value of each stock option grant on the date of grant using a Black-Scholes option pricing model and weighted–average assumptions set forth in the following table:


	Three Months Ended March 31,
	2020		2019
Expected dividend yield	0	%	0	%
Risk-free interest rate	1.2	%	2.5	%
Expected volatility	41.1	%	40.9	%
Expected life (years)	6.3		6.4

Summary of Restricted Stock Units Activity

Presented below is a summary of restricted stock units activity for the three months ended March 31, 2020 (in thousands, except for weighted average grant date fair value per unit):


	Number of Units	Weighted Average Grant Date Fair Value per Unit
Outstanding balance at December 31, 2019	1,239	$	21.37
Granted	693	23.78
Vesting of restricted stock units, net of units withheld for taxes	(293)	22.67
Units withheld for taxes	(141)	22.67
Forfeitures	(1)	24.36
Outstanding balance at March 31, 2020	1,497	$	21.60