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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed consolidated statements of income and comprehensive income for the periods indicated:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2018
 
2019
 
2018
Cost of revenues (exclusive of depreciation and amortization)
$
7,480

 
$
7,054

 
$
20,261

 
$
15,343

Selling, general and administrative expenses
8,217

 
7,756

 
17,292

 
16,063

Total
$
15,697

 
$
14,810

 
$
37,553

 
$
31,406


Stock Options
Stock option activity under the Company’s plans is set forth below:
 
Number of
Options 
 
Weighted Average
Exercise Price 
 
Aggregate
Intrinsic Value 
 
Weighted Average
Remaining Contractual Term (in years)
Options outstanding at January 1, 2019
4,082,944

 
$
44.54

 
 
 
 
Options granted
131,849

 
$
169.13

 
 
 
 
Options modified
17,871

 
$
163.55

 
 
 
 
Options exercised
(528,572
)
 
$
42.52

 
 
 
 
Options forfeited/cancelled
(2,624
)
 
$
61.38

 
 
 
 
Options outstanding at June 30, 2019
3,701,468

 
$
49.83

 
$
456,287

 
5.2
 
 
 
 
 
 
 
 
Options vested and exercisable at June 30, 2019
3,232,985

 
$
40.60

 
$
428,366

 
4.7
Options expected to vest at June 30, 2019
435,976

 
$
112.48

 
$
26,427

 
8.4

As of June 30, 2019, $15,264 of total remaining unrecognized stock-based compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 3.0 years.
Restricted Stock and Restricted Stock Units
Service-Based Awards
The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the six months ended June 30, 2019.
 
Equity-Classified
 Restricted Stock
 
Equity-Classified
Equity-Settled
Restricted Stock Units
 
Liability-Classified
Cash-Settled
Restricted Stock Units
 
Number of
Shares 
 
Weighted Average Grant Date
Fair Value Per Share 
 
Number of
Shares 
 
Weighted Average Grant Date
Fair Value Per Share 
 
Number of
Shares 
 
Weighted Average Grant Date
Fair Value Per Share 
Unvested service-based awards outstanding at January 1, 2019
793

 
$
63.10

 
797,903

 
$
92.13

 
302,967

 
$
83.99

Awards granted
—

 
$
—

 
274,381

 
$
169.93

 
48,632

 
$
169.13

Awards modified
—

 
$
—

 
6,897

 
$
170.74

 
668

 
$
168.36

Awards vested
—

 
$
—

 
(255,903
)
 
$
86.05

 
(110,012
)
 
$
80.34

Awards forfeited/cancelled
—

 
$
—

 
(18,742
)
 
$
103.44

 
(2,648
)
 
$
91.52

Unvested service-based awards outstanding at June 30, 2019
793

 
$
63.10

 
804,536

 
$
121.01

 
239,607

 
$
103.10


As of June 30, 2019, $26 of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 1.0 years.
As of June 30, 2019, $78,261 of total remaining unrecognized stock-based compensation cost related to service-based equity-classified restricted stock units (“RSUs”), net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.9 years. During the second quarter of 2019, 17,565 RSUs were granted in connection with the acquisition of test IO.
As of June 30, 2019, $30,785 of total remaining unrecognized stock-based compensation cost related to service-based liability-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.3 years.
The liability associated with the service-based liability-classified RSUs as of June 30, 2019 and December 31, 2018, was $7,928 and $9,920, respectively, and was classified as Deferred compensation due to employees in the condensed consolidated balance sheets.
Performance-Based Awards
The table below summarizes activity related to the Company’s equity-classified performance-based awards for the six months ended June 30, 2019.
 
Equity-Classified
Equity-Settled
Restricted Stock Units
 
Number of
Shares 
 
Weighted Average Grant Date
Fair Value Per Share 
Unvested performance-based awards outstanding at January 1, 2019
29,592

 
$
121.75

Awards modified
(29,592
)
 
$
121.75

Unvested performance-based awards outstanding at June 30, 2019
—

 
$
—

During the first quarter of 2019, the Company and holders of the unvested performance-based equity-classified RSUs mutually agreed to cancel the performance-based RSU awards and the Company issued service-based stock option and RSU awards with four-year vesting terms to those same recipients. As of June 30, 2019, there is no remaining unrecognized stock-based compensation cost related to performance-based equity-classified RSUs.