SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

The Company’s share-based compensation awards are issued under the 2015 Equity Incentive Plan (“2015 Plan”) and predecessor plan, the 2007 Equity Incentive Plan (the “2007 Plan”). Any awards that expire or are forfeited under the 2007 Plan become available for issuance under the 2015 Plan. As of September 30, 2019, 2.2 million shares of common stock remained available for future issuance under the 2015 Plan, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization.

Share-Based Compensation Expense

Pre-tax share-based compensation expense reported in the Company’s condensed consolidated statements of operations was:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Cost of sales	$	218	$	91	$	398	$	268
Selling, general and administrative expenses	3,401		3,214		10,622		9,052
Total share-based compensation expense	$	3,619	$	3,305	$	11,020	$	9,320

Stock Option Activity

Stock option activity during the nine months ended September 30, 2019 was:



	Number of Options
	(in thousands)
Outstanding as of December 31, 2018	362
Granted	—
Exercised	(19	)
Forfeited or expired	(20	)
Outstanding as of September 30, 2019	323

As of September 30, 2019, the Company had $0.1 million of total unrecognized share-based compensation expense related to unvested options, which is expected to be amortized over the remaining weighted average period of 0.7 years.

Restricted Stock Awards and Restricted Stock Units Activity

The Company grants service-condition restricted stock awards (“RSAs”) as well as service-condition, performance-condition, and market-condition restricted stock units (“RSUs”). RSA and RSU activity during the nine months ended September 30, 2019 was:



	Restricted Stock Awards				Restricted Stock Units
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
	(in thousands, except fair value data)
Unvested at December 31, 2018	6		$	18.61	2,752		$	11.58
Granted	12		20.53		813		25.33
Vested	(10	)	20.14		(974	)	9.71
Forfeited	—		—		(588	)	11.27
Unvested at September 30, 2019	8		$	19.39	2,003		$	17.73

As of September 30, 2019, unrecognized share-based compensation expense for RSAs was $0.1 million, which is expected to amortize over a remaining weighted average period of 0.7 years.

RSUs vested during the nine months ended September 30, 2019 consisted of 0.6 million service-condition awards and 0.4 million performance- and market-condition awards. As of September 30, 2019, unrecognized share-based compensation expenses for service-condition awards were $10.3 million and for performance- and market-condition awards were $7.3 million, and are expected to amortize over remaining weighted average periods of 1.6 years and 1.9 years, respectively.