Share-Based Compensation to Employees

6 Months Ended

Jun. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation to Employees

Share‑Based Compensation to Employees and Employee Stock Purchase Plan

During the six months ended June 30, 2014, the Company granted under the Textura Corporation Long-Term Incentive Plan (the "LTIP") stock options to purchase 79 shares of the Company's common stock with a weighted-average exercise price and weighted-average fair value of $20.15 and $8.05, respectively. The fair value of the options was estimated using the Black‑Scholes option‑pricing model with the following weighted-average assumptions:

	2014
Expected dividend yield	—
Expected volatility	40	%
Risk-free interest rate	1.81	%
Expected term (years)	5.55

Share-based compensation expense for employee equity awards was $1,830 and $3,766, respectively, for the three and six months ended June 30, 2014 and $10,089 and $10,567, respectively, for the three and six months ended June 30, 2013. Share-based compensation expense is reflected in the following captions in the condensed consolidated statements of operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Cost of services	$	156	$	1,900	$	331	$	1,943
General and administrative	1,049		3,650		2,217		3,921
Sales and marketing	324		2,164		636		2,246
Technology and development	301		2,375		582		2,457
Total	$	1,830	$	10,089	$	3,766	$	10,567

Under the Textura Corporation 2008 Stock Incentive Plan (the "2008 Plan"), the Company granted restricted stock units to eligible employees and directors. The stated vesting of these grants generally ranged from immediate to three years, but the restricted stock units only became payable to employees in cash or shares of the Company's common stock if there was a change in control of the Company or termination of the agreements in connection with an initial public offering. As the Company had determined that neither of these events was probable in any period prior to the IPO, the Company had not recognized any share-based compensation expense related to the restricted stock units prior to June 12, 2013. In connection with the IPO, all outstanding 623 restricted stock units were terminated in accordance with their terms and became payable one year following the IPO, and the Company recorded share-based compensation expense equal to the fair value of the 623 restricted stock units of $9,351 during the three months ended June 30, 2013. During June 2014, in connection with the payment of these restricted stock units, the Company issued 476 shares of common stock and withheld 147 shares of common stock to satisfy tax withholding obligations. Under the LTIP, the Company granted 73 restricted stock units during the three months ended June 30, 2013. During June 2014, in connection with the payment of these restricted stock units, 50 shares of common stock became payable and were withheld to satisfy tax withholding obligations. A total of 197 shares of common stock were withheld to satisfy tax withholding obligations in the three months ended June 30, 2014 and were valued at $4,096. They were recorded in stockholders' equity as treasury stock.

The Textura Corporation Employee Stock Purchase Plan (the ‘‘ESPP”), is intended to qualify as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code of 1986, as amended. Employees of the Company whose customary employment is more than 20 hours per week are eligible to contribute up to 10% percent of their base salary, subject to certain limitations, over the course of six-month offering periods for the purchase of shares of common stock. The purchase price for shares of common stock purchased under the ESPP is equal to 85% of the fair market value of a share of common stock at the beginning or end of the applicable six-month offering period, whichever is lower. On April 1, 2014, the Company commenced employee participation in the ESPP. The stock-based compensation expense recognized in connection with the ESPP for the three months ended June 30, 2014 was $10.