Stock-Based Awards (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

The following table summarizes the Company’s stock option activity for the six months ended June 30, 2019 (in thousands, except per share and term information):



	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value (1)
Outstanding, December 31, 2018	3,828		$	32.41	4.1	$	70,436
Granted	—		—
Exercised	(270	)	37.59
Forfeited	(32	)	47.50
Outstanding, June 30, 2019	3,526		$	31.88	3.6	$	91,853



	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value (1)
Exercisable at June 30, 2019	3,511	$	31.87	3.6	$	91,494
Vested and expected to vest at June 30, 2019	3,526	31.88		3.6	91,839



(1)	Based on the Company’s closing stock price of $57.93 on June 30, 2019 and $50.43 on December 31, 2018.

Schedule of Issuances of Awards Under New Compensation Award Structure

The following table summarizes the Company’s issuances of awards under the new compensation award structure:



Grant Date	Performance Measures	Vesting Term	Performance Period	# of Shares at Target	# of Shares at Maximum	Grant Date Fair Value per share		# of Shares Outstanding at Target (2)	# of Shares Outstanding at Maximum (2)
March 2017	(a) the Company meeting certain revenue and cash flow targets through December 31, 2019 and (b) the recipient continuing to provide services to the Company through the end of March 2020	Three years	Fiscal years 2017, 2018 and 2019	185,270	555,810	$	41.73	141,540	424,620
February 2018	(a) the Company meeting certain combined constant currency subscription revenue growth and unlevered cash flow margin targets for the year ending December 31, 2020 and (b) the recipient continuing to provide services to the Company through the end of February 2021	Three years	Fiscal year 2020	121,764	304,410	$	40.64	121,764	304,410
February 2018	(a) the Company meeting certain combined constant currency subscription revenue growth and unlevered cash flow margin targets for each of the years ending December 31, 2020, December 31, 2021, and December 31, 2022 and (b) the recipient continuing to provide services to the Company through each respective vest date at the end of February 2020, 2021 and 2022	Five years	Fiscal years 2020, 2021 and 2022 (1)	411,412	1,028,530	$	40.64	411,412	1,028,530
April 2018	(a) the Company meeting certain combined constant currency subscription revenue growth and unlevered cash flow margin targets for the year ending December 31, 2020 and (b) the recipient continuing to provide services to the Company through the beginning of April 2021	Three years	Fiscal year 2020	3,572	8,930	$	39.54	—	—
April 2018	(a) the Company meeting certain combined constant currency subscription revenue growth and unlevered cash flow margin targets for each of the years ending December 31, 2020, December 31, 2021, and December 31, 2022 and (b) the recipient continuing to provide services to the Company through each respective vest date at the beginning of April 2020, 2021 and 2022	Five years	Fiscal years 2020, 2021 and 2022 (1)	53,572	133,930	$	39.54	11,794	29,485



Grant Date	Performance Measures	Vesting Term	Performance Period	# of Shares at Target	# of Shares at Maximum	Grant Date Fair Value per share		# of Shares Outstanding at Target (2)	# of Shares Outstanding at Maximum (2)
February 2019	(a) the Company meeting certain combined constant currency subscription revenue growth and unlevered cash flow margin targets for the year ending December 31, 2021 and (b) the recipient continuing to provide services to the Company through the beginning of February 2022	Three years	Fiscal year 2021	13,178	32,945	$	58.23	13,178	32,945
February 2019	(a) the Company meeting certain combined constant currency subscription revenue growth and unlevered cash flow margin targets for the year ending December 31, 2021 and (b) the recipient continuing to provide services to the Company through the beginning of February 2022	Three years	Fiscal year 2021	80,559	201,398	$	57.27	80,559	201,398
March 2019	(a) the Company meeting certain combined constant currency subscription revenue growth and unlevered cash flow margin targets for the year ending December 31, 2021 and (b) the recipient continuing to provide services to the Company through the beginning of February 2022	Three years	Fiscal year 2021	43,136	107,835	$	56.15	43,136	107,835
June 2019	(a) the Company meeting certain combined constant currency subscription revenue and unlevered cash flow margin targets for the year ending December 31, 2021 and (b) the recipient continuing to provide services to the Company through the beginning of February 2022	Three years	Fiscal year 2021	19,143	47,857	$	54.84	19,143	47,857



(1)	One-third of the total eligible shares shall vest on each of the third, fourth and fifth anniversaries of the grant date. This award is a one-time equity award intended to cover expected grant levels over a three-year period. In exchange, the Compensation Committee does not plan to grant any additional equity awards to recipients of this award until 2021.
(2)	Excludes an aggregate of 244,565 shares at the maximum level and 89,080 shares at the target level of achievement that were forfeited due to termination of employment as of June 30, 2019.

Summary of Stock-based Compensation Expense

Stock-based compensation expense related to stock options, restricted stock units, the ESPP and performance-based restricted stock units is included in the following line items in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018 (in thousands):



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Cost of revenue	$	1,786	$	1,021	$	2,922	$	2,023
Sales and marketing	6,809		6,545		12,856		12,791
Research and development	4,319		2,417		8,515		4,725
General and administrative	6,237		5,300		11,903		9,787
Restructuring	—		749		—		6,185
Total	$	19,151	$	16,032	$	36,196	$	35,511