XML 36 R16.htm IDEA: XBRL DOCUMENT v3.19.3
STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 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 
 September 30,
 
Nine Months Ended 
 September 30,
 
2019
 
2018
 
2019
 
2018
Cost of revenues (exclusive of depreciation and amortization)
$
7,580

 
$
7,492

 
$
27,841

 
$
22,835

Selling, general and administrative expenses
7,891

 
7,838

 
25,183

 
23,901

Total
$
15,471

 
$
15,330

 
$
53,024

 
$
46,736


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
(668,339
)
 
$
43.09

 
 
 
 
Options forfeited/cancelled
(10,701
)
 
$
97.83

 
 
 
 
Options outstanding at September 30, 2019
3,553,624

 
$
49.87

 
$
470,672

 
4.9
 
 
 
 
 
 
 
 
Options vested and exercisable at September 30, 2019
3,129,141

 
$
41.01

 
$
442,179

 
4.5
Options expected to vest at September 30, 2019
397,070

 
$
114.20

 
$
27,050

 
8.3

As of September 30, 2019, $13,619 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 2.8 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 nine months ended September 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
9,394

 
$
167.18

 
282,628

 
$
170.25

 
55,912

 
$
170.12

Awards modified
—

 
$
—

 
6,897

 
$
170.74

 
668

 
$
168.36

Awards vested
(396
)
 
$
63.10

 
(273,119
)
 
$
86.38

 
(110,012
)
 
$
80.34

Awards forfeited/cancelled
—

 
$
—

 
(35,004
)
 
$
111.93

 
(4,856
)
 
$
94.73

Unvested service-based awards outstanding at September 30, 2019
9,791

 
$
162.96

 
779,305

 
$
122.28

 
244,679

 
$
105.33


As of September 30, 2019, $1,540 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 2.9 years. During the third quarter of 2019, in connection with one of the Other 2019 Acquisitions, the Company issued 9,394 shares of service-based restricted stock. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions.
As of September 30, 2019, $70,990 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 2.7 years. During the first nine months of 2019, 21,933 RSUs were granted in connection with acquisition of businesses. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions.
As of September 30, 2019, $28,764 of total remaining unrecognized stock-based compensation cost related to service-based liability-classified cash-settled RSUs, net of estimated forfeitures, is expected to be recognized over the weighted-average remaining requisite service period of 2.2 years. During the third quarter of 2019, in connection with one of the Other 2019 Acquisitions, the Company issued 7,280 shares of service-based liability-classified cash-settled RSUs. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions.
The liability associated with the service-based liability-classified RSUs as of September 30, 2019 and December 31, 2018, was $13,427 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 nine months ended September 30, 2019:
 
Equity-Classified
Equity-Settled
Restricted Stock Units
 
Equity-Classified
Equity-Settled
Restricted Stock
 
Number of
Shares 
 
Weighted Average Grant Date
Fair Value Per Share 
 
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 granted
—

 
$
—

 
9,393

 
$
165.87

Awards modified
(29,592
)
 
$
121.75

 
—

 
$
—

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

 
$
—

 
9,393

 
$
165.87

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 September 30, 2019, there is no remaining unrecognized stock-based compensation cost related to performance-based equity-classified RSUs.
During the third quarter of 2019, in connection with one of the Other 2019 Acquisitions, the Company issued 9,393 shares of performance-based restricted stock, subject to attainment of specified performance targets in the 12 months and 24 months after the acquisition date. See Note 2 “Acquisitions” in the condensed consolidated interim financial statements for additional information regarding business acquisitions. As of September 30, 2019, $1,041 of total remaining unrecognized stock-based compensation cost related to performance-based restricted stock is expected to be recognized over the weighted-average remaining requisite service period of 3.9 years.