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Stock Based Compensation
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation
Stock Based Compensation

Long-term incentive plan
In connection with its initial public offering in August 2013, SBS adopted the Stock Building Supply Holdings, Inc. 2013 Incentive Compensation Plan (“SBS 2013 Incentive Plan”). The SBS 2013 Incentive Plan provides for grants of stock options, stock appreciation rights, restricted stock, other stock-based awards, other cash-based compensation and performance awards. In general, if awards under the SBS 2013 Incentive Plan are for any reason canceled, or expire or terminate unexercised, the shares covered by such awards may again be available for the grant of awards under the SBS 2013 Incentive Plan. Awards granted under the SBS 2013 Incentive Plan generally vest over a period of three or four years. Stock options granted under the SBS 2013 Incentive Plan have a maximum contractual term of 10 years from the date of grant. As of December 31, 2018, 2.4 million shares were available for issuance under the SBS 2013 Incentive Plan.

Performance-based restricted stock units
As of December 31, 2018, the Company has performance-based restricted stock units outstanding that were granted during the years ended December 31, 2018 and 2017. The total number of performance-based restricted stock units that could be issued upon future vestings ranges from zero to a maximum of 0.6 million, based 50% upon the Company’s average return on invested capital and 50% upon the Company’s cumulative adjusted earnings per share over three year performance periods. Compensation cost for the performance-based restricted stock units is recorded based on the expected number of units that will vest and is adjusted, as appropriate, throughout the performance period.

Stock based compensation expense
Stock based compensation is included in selling, general and administrative expenses on the consolidated statements of operations. The following table highlights stock based compensation for the years ended December 31, 2018, 2017 and 2016:
(in thousands)
 
2018
 
2017
 
2016
Restricted stock units (a)
 
$
11,133

 
$
6,006

 
$
4,643

Restricted stock
 
100

 
436

 
1,559

Stock options
 
82

 
327

 
1,050

Stock based compensation
 
$
11,315

 
$
6,769

 
$
7,252


(a) Includes service-based and performance-based restricted stock units.

Stock based award activity
The following is a summary of restricted stock and restricted stock unit activity, excluding performance-based restricted stock units:
 
 
Restricted Stock
 
Restricted Stock Units
 
 
Number of Shares Outstanding
(in thousands)
 
Weighted Average Grant Date Fair Value
 
Number of
Units
Outstanding (in thousands)
 
Weighted
Average
Grant Date
Fair Value
December 31, 2015
 
455

 
$
13.51

 
282

 
$
16.99

Granted
 
—

 
—

 
166

 
17.65

Vested
 
(301
)
 
11.95

 
(123
)
 
16.86

Forfeited
 
(37
)
 
13.69

 
(27
)
 
17.16

December 31, 2016
 
117

 
17.42

 
298

 
17.39

Granted
 
—

 
—

 
396

 
21.79

Vested
 
(49
)
 
16.25

 
(163
)
 
17.49

Forfeited
 
(8
)
 
19.08

 
(21
)
 
20.34

December 31, 2017
 
60

 
18.17

 
510

 
20.65

Granted
 
—

 
—

 
748

 
20.22

Vested
 
(60
)
 
18.17

 
(266
)
 
20.64

Forfeited
 
—

 
—

 
(88
)
 
19.32

December 31, 2018
 
—

 
$
—

 
904

 
$
20.43



The following is a summary of the maximum number of performance-based restricted stock units which could be earned and related activity:
 
 
Performance-Based Restricted Stock Units
 
 
Number of
Units
Outstanding (in thousands)
 
Weighted
Average
Grant Date
Fair Value
December 31, 2015
 
—

 
$
—

Granted (a)
 
206

 
16.35

Vested
 
—

 
—

Forfeited
 
—

 
—

December 31, 2016
 
206

 
16.35

Granted (a)
 
255

 
21.94

Vested
 
—

 
—

Forfeited
 
(8
)
 
22.90

December 31, 2017
 
453

 
19.37

Granted (a)
 
474

 
19.64

Vested
 
—

 
—

Forfeited
 
(302
)
 
17.76

December 31, 2018
 
625

 
$
20.36

(a) Represents the maximum number of performance-based restricted stock units which could be earned.

The following is a summary of stock option award activity:
 
 
Number of Options
(in thousands)
 
Weighted Average Exercise Price
 
Contractual
Term
(in years)
 
Intrinsic
Value
(in thousands)
Outstanding at December 31, 2015
 
1,228

 
$
14.17

 
 
 
 
Granted
 
3

 
17.04

 
 
 
 
Exercised
 
(175
)
 
7.90

 
 
 
 
Forfeited
 
(10
)
 
17.04

 
 
 
 
Expired
 
(22
)
 
17.53

 
 
 
 
Outstanding at December 31, 2016
 
1,024

 
15.15

 
 
 
 
Granted
 
—

 
—

 
 
 
 
Exercised
 
(260
)
 
13.05

 
 
 
 
Forfeited
 
(14
)
 
17.04

 
 
 
 
Expired
 
(45
)
 
19.89

 
 
 
 
Outstanding at December 31, 2017
 
705

 
15.59

 
 
 
 
Granted
 
—

 
—

 
 
 
 
Exercised
 
(96
)
 
14.01

 
 
 
 
Forfeited
 
(6
)
 
17.04

 
 
 
 
Expired
 
(7
)
 
16.37

 
 
 
 
Outstanding at December 31, 2018
 
596

 
$
15.82

 
5.3
 
$
982

 
 
 
 
 
 
 
 
 
Exercisable at December 31, 2018
 
596

 
$
15.82

 
5.3
 
$
982

 
 
 
 
 
 
 
 
 
Vested and expected to vest at December 31, 2018
 
596

 
$
15.82

 
5.3
 
$
982



The weighted average grant date fair value of stock options granted during the year ended December 31, 2016 was $9.70.

During the years ended December 31, 2018, 2017 and 2016, the aggregate intrinsic value of the stock options exercised was $0.8 million, $2.3 million and $1.9 million, respectively.

The following table summarizes the Company’s total unrecognized compensation cost related to equity based compensation as of December 31, 2018:
(in thousands, except period data)
 
Unrecognized Compensation Cost
 
Weighted Average Remaining Period of Expense Recognition
(in years)
Restricted stock units
 
$
8,693

 
1.5
Performance-based restricted stock units
 
5,140

 
2.4
 
 
$
13,833