SHARE-BASED COMPENSATION

The Company’s share-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 (the “2007 Plan”). Any awards that expire or are forfeited under the 2007 Plan become available for issuance under the 2015 Plan. There were 7,928,141 shares of common stock reserved and authorized for issuance at September 30, 2017, under all plans, 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 share-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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(in thousands)
Cost of sales	$	93	$	135	$	293	$	386
Selling, general and administrative expenses	2,813		1,973		6,558		7,620
Total share-based compensation expense	$	2,906	$	2,108	$	6,851	$	8,006

Stock Option Activity

Stock option activity during the nine months ended September 30, 2017 was:



	Number of Options
Outstanding December 31, 2016	518,252
Granted	200,000
Exercised	(1,500	)
Forfeited or expired	(156,720	)
Outstanding September 30, 2017	560,032

As of September 30, 2017, the Company had $0.5 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 2.51 years. The weighted average exercise price of vested options was $12.98 per share.

Restricted Stock Awards and Restricted Stock Units Activity

The Company grants time-based Restricted Stock Awards (“RSAs”) as well as time-based and performance-based Restricted Stock Units (“RSUs”). RSA and RSU activity during the nine months ended September 30, 2017 was:



	Restricted Stock Awards				Restricted Stock Units
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Unvested at December 31, 2016	11,430		$	10.28	3,855,368		$	10.31
Granted	35,114		6.84		2,433,601		6.84
Vested	(20,208	)	8.78		(717,302	)	10.90
Forfeited	—		—		(1,720,629	)	9.61
Unvested at September 30, 2017	26,336		$	6.84	3,851,038		$	8.00

RSAs vested during the nine months ended September 30, 2017 consisted entirely of time-based awards. As of September 30, 2017, unrecognized share-based compensation expense for RSAs was $0.2 million, which is expected to amortize over a remaining weighted average period of 0.68 years.

RSUs vested during the nine months ended September 30, 2017 consisted of 648,985 time-based awards and 68,317 performance-based awards. As of September 30, 2017, unrecognized share-based compensation expenses for time-based and performance-based awards were $11.6 million and $4.7 million, respectively, and are expected to amortize over a remaining weighted average period of 1.98 years.