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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Cost of services-compensation	$	1,126	$	2,720	$	4,975	$	6,843
Selling, general and administrative	3,314		2,082		12,975		8,938
Total	$	4,440	$	4,802	$	17,950	$	15,781

Summary of Stock Option Activity

Presented below is a summary of stock option activity for the six months ended June 30, 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	1,070	27.46
Exercised	(92)	17.61
Forfeitures	(39)	27.80
Expired	—	—
Outstanding balance at June 30, 2020	3,350	$	24.84	7.73	$	28,901
Expected to vest at June 30, 2020	1,313	$	28.86	9.17	$	6,577
Exercisable at June 30, 2020	1,608	$	20.64	6.25	$	20,229

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:


	Six Months Ended June 30,
	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 six months ended June 30, 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	739	24.19
Vesting of restricted stock units, net of units withheld for taxes	(315)	23.38
Units withheld for taxes	(146)	23.38
Forfeitures	(37)	24.40
Outstanding balance at June 30, 2020	1,480	$	23.91