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Share-Based Compensation to Employees (Tables)
3 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Valuation assumptions for fair value of stock options
he fair value of the options was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Three Months Ended
 
March 31, 2016
Expected dividend yield

Expected volatility
36.0
%
Risk-free interest rate
1.32
%
Expected term (years)
6.00


Share-based compensation expense reflected in the condensed consolidated statements of operations
Share‑Based Compensation
During the three months ended March 31, 2016, we granted under the Long-Term Incentive Plan stock options to purchase approximately 8,000 shares of our common stock with a weighted-average exercise price and weighted-average fair value of $13.52 and $4.97, respectively. The fair value of the options was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
Three Months Ended
 
March 31, 2016
Expected dividend yield

Expected volatility
36.0
%
Risk-free interest rate
1.32
%
Expected term (years)
6.00


In addition, during the three months ended March 31, 2016, we granted under the Long-Term Incentive Plan restricted stock units (‘‘RSUs’’) to purchase 0.6 million shares of our common stock with a weighted-average fair value of $13.53 per share.

In September 2014, two of our co-founders retired from full-time employment and entered into consulting arrangements to provide certain transition services to us beginning in October 2014. Pursuant to the consulting arrangements, in October 2014, the former employees were collectively granted stock options to purchase approximately 33,000 shares of our common stock. Such stock options vested over a period between six and twelve months, and we recognized the expense for these non-employee options as they vested. Since they are non-employee stock awards, we began recognizing the expense based on the fair value of the awards at the end of each reporting period beginning in the three months ended December 31, 2014. Share-based compensation expense related to these non-employee options was $0.1 million for the three months ended March 31, 2015. We did not recognize any share-based compensation expense related to these non-employee stock options for the three months ended March 31, 2016.

On April 29, 2015, our Board of Directors appointed David Habiger as interim CEO effective April 30, 2015. Mr. Habiger replaced Patrick Allin, who continued with the Company as Executive Chairman through December 31, 2015. In connection with Mr. Habiger's employment with the Company as interim CEO, he entered into a letter agreement with the Company dated May 4, 2015, pursuant to which he was granted an RSU award with a fair value of $2.3 million, which vested on May 4, 2016. See Note 8 for further details on transition arrangements.
    
Share-based compensation expense was $3.1 million and $2.0 million, respectively, for the three months ended March 31, 2016 and 2015. Share-based compensation expense is reflected in the following captions in the condensed consolidated statements of operations:
 
Three Months Ended March 31,
 
2016
 
2015
 
(in thousands)
Cost of services
$
378

 
$
187

General and administrative
2,069

 
1,316

Sales and marketing
402

 
266

Technology and development
223

 
202

Total
$
3,072

 
$
1,971