Share Compensation

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE COMPENSATION

The Company’s stock-based compensation awards are issued under the 2015 Equity Incentive Plan (“2015 Plan”) and two predecessor plans, the 2005 Equity Incentive Plan and the 2007 Equity Incentive Plan. Any awards that expire or are forfeited become available for issuance under the 2015 Plan. Shares of common stock reserved and authorized for issuance at March 31, 2017 under all plans were 8,093,277 shares, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization.

Refer to Notes 1 and 11 of the Company’s Annual Report for a detailed description of the Company’s stock-based compensation awards, including information related to grant date fair value, vesting terms, performance and other conditions.

Share-based Compensation Expense

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



	Three Months Ended March 31,
	2017		2016
	(in thousands)
Cost of sales	$	89	$	128
Selling, general and administrative expenses	2,522		2,698
Total stock compensation expense	$	2,611	$	2,826

Due to the timing of annual grants, the price of the Company’s common stock and other factors, stock-based compensation expense recognized during the three months ended March 31, 2017 is not indicative of the level of compensation expense expected to be incurred for the full year.

Stock Option Activity

Stock option activity during the three months ended March 31, 2017 was:



	Number of Options
Outstanding as of December 31, 2016	518,252
Granted	—
Exercised	—
Forfeited or expired	(53,058	)
Outstanding as of March 31, 2017	465,194

As of March 31, 2017, the Company had $0.2 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 1.6 years. The weighted average exercise price of vested options was $16.64 per share.

Restricted Stock Awards and Restricted Stock Units Activity

The Company grants time-based and performance-based Restricted Stock Awards (“RSA”) and Restricted Stock Units (“RSUs”). RSA and RSU activity during the three months ended March 31, 2017 was:



	Restricted Stock Awards				Restricted Stock Units
	Shares		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Unvested at December 31, 2016	11,430		$	10.28	3,855,368		$	10.31
Granted	—		—		2,327,258		6.80
Vested	(5,715	)	10.28		(515,963	)	10.84
Forfeited	—		—		(1,105,226	)	9.31
Unvested at March 31, 2017	5,715		$	10.28	4,561,437		$	8.70

RSAs vested during the three months ended March 31, 2017 consisted entirely of time-based awards. As of March 31, 2017, unrecognized share-based compensation expense for RSAs was $0.1 million, which is expected to amortize over a remaining weighted average period of 0.2 years.

RSUs vested during the three months ended March 31, 2017 consisted of 447,646 time-based awards and 68,317 performance-based awards. As of March 31, 2017, unrecognized share-based compensation expense for time-based and performance-based awards was $15.8 million and $6.4 million respectively, and is expected to amortize over a remaining weighted average period of 1.9 years.