Note 5—Equity and Stock-based Compensation

On May 25, 2016, the Company’s Board of Directors approved a two-for-one stock split to be effected in the form of a stock dividend. The record date for the stock split was June 7, 2016 and the payment date was June 24, 2016. All share and per share amounts (other than for the Company’s Class A non-voting common stock) have been retroactively restated for all periods presented to reflect the stock split.

At the Company’s annual meeting of shareholders held on May 25, 2016, the Company’s shareholders approved the Company’s Amended and Restated 2014 Stock Incentive Plan (the “Amended 2014 Plan”). The primary changes to the Amended 2014 Plan are to (i) increase the shares available for equity awards by 24 million shares and (ii) add flexibility to use this plan as the Company’s only equity plan by authorizing the issuance of full-value awards (that is, restricted stock and restricted stock units) and expanding the class of participants to include non-employee directors. Following the approval of the 2014 Amended Plan, the Company will no longer make grants under the Company’s 2008 Stock Incentive Plan or the Company’s 2006 Equity Incentive Plan.

Total stock options, SARs, RSUs and RSAs. The amount of stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Comprehensive Income for three and six months ended June 30, 2016 and 2015 was as follows (in thousands):

	Three Months Ended June 30,				For the Six Months Ended June 30,
Statement of Comprehensive Income Classification	2016		2015		2016		2015
Cost of software-enabled services	$	2,779	$	1,525	$	5,184	$	3,129
Cost of maintenance and term licenses		700		101		1,511		202
Cost of recurring revenues		3,479		1,626		6,695		3,331
Cost of professional services		599		159		1,243		325
Cost of non-recurring revenues		599		159		1,243		325
Total cost of revenues		4,078		1,785		7,938		3,656
Selling and marketing		2,860		745		6,445		1,488
Research and development		2,182		444		4,398		894
General and administrative		3,446		1,234		9,132		2,276
Total operating expenses		8,488		2,423		19,975		4,658
Total stock-based compensation expense	$	12,566	$	4,208	$	27,913	$	8,314

The following table summarizes stock option and SAR activity as of and for the six months ended June 30, 2016:

	Shares
Outstanding at December 31, 2015		30,278,364
Granted		1,440,300
Cancelled/forfeited		(912,816	)
Exercised		(3,171,668	)
Outstanding at June 30, 2016		27,634,180

The following table summarizes RSU activity as of and for the six months ended June 30, 2016:

	Shares
Outstanding at December 31, 2015		957,452
Granted		-
Cancelled/forfeited		(55,498	)
Vested		(419,702	)
Outstanding at June 30, 2016		482,252

The Company recorded $23.8 million and $5.1 million of income tax benefits related to the exercise of stock options during the six months ended June 30, 2016 and 2015, respectively. These amounts were recorded entirely to Additional paid-in capital on the Company’s Condensed Consolidated Balance Sheets.