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Stock-Based Awards and Other Equity Instruments
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Awards and Other Equity Instruments
NOTE 10 — Stock-Based Awards and Other Equity Instruments
Pursuant to the Amended and Restated Expedia Group, Inc. 2005 Stock and Annual Incentive Plan, we may grant restricted stock, restricted stock awards, RSUs, stock options and other stock-based awards to directors, officers, employees and consultants. As of December 31, 2019, we had approximately 7 million shares of common stock reserved for new stock-based awards under the 2005 Stock and Annual Incentive Plan. We issue new shares to satisfy the exercise or release of stock-based awards. During 2019, we started issuing RSUs as our primary form of stock-based compensation, which vest 25% after one year and will then vest quarterly over the following three years. During 2018 and 2017, an equity choice program existed for annual awards that allowed for the choice of stock options or RSUs with certain limitations.
The following table presents a summary of RSU activity:
 
RSUs
 
Weighted Average
Grant-Date Fair
Value
 
(In thousands)
 
 
Balance as of January 1, 2017
1,349

 
$
114.58

Granted
1,350

 
123.24

Vested
(492
)
 
115.29

Cancelled
(266
)
 
116.26

Balance as of December 31, 2017
1,941

 
120.19

Granted
1,821

 
107.37

Vested
(615
)
 
118.41

Cancelled
(386
)
 
113.55

Balance as of December 31, 2018
2,761

 
113.12

Granted
2,937

 
121.39

Vested
(952
)
 
114.33

Cancelled
(616
)
 
117.54

Balance as of December 31, 2019
4,130

 
117.05


The total market value of shares vested during the years ended December 31, 2019, 2018 and 2017 was $117 million, $68 million and $65 million.
The following table presents a summary of our stock option activity:
 
Options
 
Weighted Average
Exercise Price
 
Remaining
Contractual Life
 
Aggregate
Intrinsic Value
 
(In thousands)
 
 
 
(In years)
 
(In millions)
Balance as of January 1, 2017
18,841

 
$
84.07

 
 
 
 
Granted
3,618

 
124.08

 
 
 
 
Exercised
(3,422
)
 
62.67

 
 
 
 
Cancelled
(3,384
)
 
96.86

 
 
 
 
Balance as of December 31, 2017
15,653

 
95.23

 
 
 
 
Granted
5,342

 
104.72

 
 
 
 
Exercised
(2,098
)
 
71.36

 
 
 
 
Cancelled
(1,197
)
 
107.26

 
 
 
 
Balance as of December 31, 2018
17,700

 
100.11

 
 
 
 
Granted
31

 
123.31

 
 
 
 
Exercised
(3,370
)
 
85.04

 
 
 
 
Cancelled
(1,246
)
 
111.31

 
 
 
 
Balance as of December 31, 2019
13,115

 
102.97

 
3.3
 
$
112

Exercisable as of December 31, 2019
7,559

 
98.75

 
2.5
 
94

Vested and expected to vest after December 31, 2019
13,115

 
102.97

 
3.3
 
112


The aggregate intrinsic value of outstanding options shown in the stock option activity table above represents the total pretax intrinsic value at December 31, 2019, based on our closing stock price of $108.14 as of the last trading date in 2019. The total intrinsic value of stock options exercised was $145 million, $107 million and $249 million for the years ended December 31, 2019, 2018 and 2017.
Options granted during the year ended December 31, 2019 were immaterial. The fair value of stock options granted during the years ended December 31, 2018 and 2017 were estimated at the date of grant using appropriate valuation techniques, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions:
 
2018
 
2017
Risk-free interest rate
2.47
%
 
1.58
%
Expected volatility
32.81
%
 
32.47
%
Expected life (in years)
3.80

 
3.65

Dividend yield
1.11
%
 
0.92
%
Weighted-average estimated fair value of options granted during the year
$
24.97

 
$
30.17


In 2019 and 2018, we recognized total stock-based compensation expense of $241 million and $203 million. In 2017, we recognized total stock-based compensation expense of $149 million, which included the reversal of $41 million of previously recognized stock-based compensation as a result of the departure of our former CEO and the related forfeiture of certain of his stock-based awards within general and administrative expense. The total income tax benefit related to stock-based compensation expense was $55 million, $39 million and $38 million for 2019, 2018 and 2017.
Cash received from stock-based award exercises for the years ended December 31, 2019 and 2018 was $284 million and $149 million. Total current income tax benefits during the years ended December 31, 2019 and 2018 associated with the exercise of stock-based awards held by our employees were $60 million and $34 million.
As of December 31, 2019, there was approximately $454 million of unrecognized stock-based compensation expense related to unvested stock-based awards, which is expected to be recognized in expense over a weighted-average period of 2.56 years.
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (“ESPP”), which allows shares of our common stock to be purchased by eligible employees at three-month intervals at 85% of the fair market value of the stock on the last day of each three-month period. Eligible employees are allowed to contribute up to 10% of their base compensation. During 2019, 2018 and 2017,
approximately 171,000, 170,000, and 141,000 shares were purchased under this plan for an average price of $99.41, $101.26 and $112.31 per share. As of December 31, 2019, we have reserved approximately 1 million shares of our common stock for issuance under the ESPP.