Common Stock and Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Common Stock and Stockholders' Equity

Note 6. Common Stock and Stockholders’ Equity

Common Stock

As of March 31, 2017 and December 31, 2016, there were 400 million shares authorized for issuance with a par value of $0.01 per share. There were 99.2 million and 97.2 million shares of common stock issued and 98.7 million and 96.7 million shares outstanding as of March 31, 2017 and December 31, 2016, respectively. Included within the number of shares issued and outstanding were approximately 41 thousand and 0.1 million shares of common stock subject to repurchase, as of March 31, 2017 and December 31, 2016, respectively.

Preferred Stock

As of each of March 31, 2017 and December 31, 2016, 10.0 million shares of preferred stock were authorized for issuance with a par value of $0.01 per share and no shares of preferred stock were issued or outstanding.

Employee Equity Plans

Employee Stock Purchase Plan

Under our Employee Stock Purchase Plan, or ESPP, eligible employees are granted options to purchase shares of our common stock through payroll deductions. The ESPP provides for 18-month offering periods, which include three six-month purchase periods. At the end of each purchase period, employees are able to purchase shares at 85% of the lower of the fair market value of our common stock at the beginning of an offering period or the fair market value of our common stock at the end of the purchase period. No shares of common stock were purchased under the ESPP during the three months ended March 31, 2017. Pursuant to the terms of the ESPP, the number of shares reserved under the ESPP increased by 1.0 million shares on January 1, 2017. As of March 31, 2017, 4.2 million shares of common stock were available for issuance under the ESPP.

Stock Option and Grant Plans

Our board of directors adopted the 2009 Stock Option and Grant Plan, or the 2009 Plan, in July 2009. The 2009 Plan was terminated in connection with our IPO in May 2014, and accordingly, no shares are available for issuance under this plan. The 2009 Plan continues to govern outstanding awards granted thereunder.

Our 2014 Stock Option and Incentive Plan, or the 2014 Plan, serves as the successor to our 2009 Plan. Pursuant to the terms of the 2014 Plan, the number of shares reserved for issuance under the 2014 Plan increased by 4.8 million shares on January 1, 2017. As of March 31, 2017, we had 10.3 million shares of common stock available for future grants under the 2014 Plan.

On May 6, 2016, the compensation committee of our board of directors granted equity awards representing 1.2 million shares. These awards were granted outside of the 2014 Plan pursuant to an exemption provided for “employment inducement awards” within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual and accordingly did not require approval from our stockholders.

A summary of our stock option and RSU activity for the three months ended March 31, 2017 is as follows (in thousands, except per share information):

			Options Outstanding							RSUs Outstanding
	Shares Available for Grant		Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value		Outstanding RSUs		Weighted Average Grant Date Fair Value
							(In years)
Outstanding — January 1, 2017	6,039		8,479		$	14.52	7.49	$	66,449	6,936		$	20.81
Increase in authorized shares	4,833
Stock options granted	(170	)	170		24.51
RSUs granted	(892	)								892		24.64
Stock options exercised			(1,114	)	10.49
RSUs vested										(930	)	17.34
Stock options forfeited or    canceled	156		(156	)	23.33
RSUs forfeited or canceled	381									(381	)	22.29
Outstanding — March 31, 2017	10,347		7,379		$	15.17	7.39	$	95,123	6,517		$	21.74

The aggregate intrinsic value for options outstanding represents the difference between the closing stock price of our common stock and the exercise price of outstanding, in-the-money options. Our closing stock price as reported on the New York Stock Exchange as of March 31, 2017 was $28.04.

As of March 31, 2017, we had a total of $168.5 million in future share-based compensation expense related to all equity awards to be recognized over a weighted average period of 2.6 years.

Early Exercise of Stock Options and Purchase of Unvested Stock Awards

Common stock purchased pursuant to an early exercise of stock options or unvested stock awards is not deemed to be outstanding for financial reporting purposes until those shares vest. As of March 31, 2017 and December 31, 2016, there were approximately 41 thousand and 0.1 million shares, outstanding as a result of early exercise of stock options and purchase of unvested stock awards by our employees and directors that were classified as accrued liabilities for an aggregated amount of $0.3 million and $0.4 million, respectively.