Employee Incentive Plans

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Stock options	$	1,580	$	3,435	$	6,135	$	11,927
RSUs	17,758		12,295		49,924		41,451
ESPP	433		376		1,310		1,155
Stock issued related to acquisition	—		—		—		159
Total stock-based compensation expense	$	19,771	$	16,106	$	57,369	$	54,692

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Sales and marketing	$	1,791	$	1,591	$	5,674	$	5,857
Origination and servicing	1,104		1,049		3,278		3,819
Engineering and product development	5,332		4,640		16,075		17,001
Other general and administrative	11,544		8,826		32,342		28,015
Total stock-based compensation expense	$	19,771	$	16,106	$	57,369	$	54,692

The Company capitalized $2.2 million of stock-based compensation expense associated with developing software for internal use during both the third quarters of 2018 and 2017. The Company capitalized $7.1 million and $7.4 million of stock-based compensation expense associated with developing software for internal use during the first nine months 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.