EQUITY-BASED COMPENSATION

9 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

EQUITY-BASED COMPENSATION

NOTE 9.  EQUITY–BASED COMPENSATION

We grant various forms of equity–based compensation to our senior management and directors.  These equity–based awards consist of non–qualified stock options and restricted stock units (“RSUs”).

In April 2018, we issued 0.5 million RSUs to our senior management.  These RSUs vest as follows: (a) one–fourth on July 29, 2019, (b) one–fourth on January 29, 2020, and (c) one–half on January 29, 2021.  The fair value of these RSUs on the date of grant was $13.8 million.  In August 2018, our Board accelerated the vesting of the RSUs that were to vest on July 29, 2019 and January 29, 2020, causing us to accelerate the recognition of $5.1 million in equity–based compensation costs.  

We recognized equity–based compensation costs of $6.5 million and $0.4 million in the three months ended September 30, 2018 and 2017, respectively, and $9.1 million and $1.6 million in the nine months ended September 30, 2018 and 2017, respectively.  These costs are included in “Selling, general and administrative expenses” on our unaudited condensed consolidated statements of operations.  

As of September 30, 2018, we had $5.7 million of unrecognized equity–based compensation cost, which is expected to be recognized over a weighted average period of 2.3 years.