Employee Incentive Plans

6 Months Ended

Jun. 30, 2018

The Company’s equity incentive plans provide for granting stock options and restricted stock units (RSUs) to employees, consultants, officers and directors.

Stock-based compensation expense was as follows for the periods presented:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock options	$	1,988	$	4,147	$	4,555	$	8,492
RSUs	17,373		14,522		32,166		29,156
ESPP	436		394		877		779
Stock issued related to acquisition	—		25		—		159
Total stock-based compensation expense	$	19,797	$	19,088	$	37,598	$	38,586

The following table presents the Company’s stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Sales and marketing	$	2,023	$	1,967	$	3,883	$	4,266
Origination and servicing	1,102		1,354		2,174		2,770
Engineering and product development	5,464		5,773		10,743		12,361
Other general and administrative	11,208		9,994		20,798		19,189
Total stock-based compensation expense	$	19,797	$	19,088	$	37,598	$	38,586

The Company capitalized $2.7 million of stock-based compensation expense associated with developing software for internal use during both the second quarters of 2018 and 2017. The Company capitalized $4.9 million and $5.2 million of stock-based compensation expense associated with developing software for internal use during the first halves of 2018 and 2017, respectively.

Performance-based Restricted Stock Units

During the first quarter of 2018, the Company granted its chief executive officer and chief financial officer performance-based restricted stock units (PBRSUs). PBRSUs are equity awards that may be earned based on achieving certain pre-established performance metrics over a specific performance period. Depending on the achievement of the pre-established performance targets, the PBRSUs issued could range from 0% to 200% of the target amount. PBRSUs granted under the Company’s equity incentive plans generally have a one-year performance period with one-half of the grant vesting over one-year following the completion of the performance period and the remaining one-half vesting over two-years following the completion of the performance period. Over the performance period, the number of PBRSUs that may be earned and the related stock-based compensation expense that is recognized is adjusted upward or downward based upon the probability of achieving the pre-established performance targets against the performance metrics.