STOCK-BASED AWARDS

The Company’s indirect parent adopted the Ancelux Topco S.C.A. Equity Incentive Plan (the “Topco Plan”), which provides for employees, directors and consultants of the Company to be granted options and RSUs, which represent the option to purchase or rights to own investor interests in an indirect parent entity of the Company, respectively. Under the Topco Plan, an aggregate of 613,710 investor interests may be the subject of grants of options or restricted share units (subject to adjustment as provided in the Plan), of which 76,597 remain available for grant as of December 31, 2015. All awards granted and outstanding pursuant to these plans have a term not greater than 10 years from the original date of grant.

In 2015, the Company’s indirect parent entity paid return-of-capital distributions to its shareholders and stock-based award holders of $216 million. Under the terms of the Topco Plan and the predecessor plans under which the equity awards were issued, an equitable adjustment was required to be made to all stock-based awards outstanding upon a return-of-capital distribution such that no dilution or enlargement of benefits occurred. The stock-based awards outstanding as of the date of the distribution were modified as follows:


•	Vested option holders received an immediate cash distribution.


•	Unvested option holders will receive a cash distribution upon vesting of the original award. Options granted typically vest over a five-year term with 20% of the options vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments over the next 16 quarters thereafter.


•	RSU holders either received an immediate cash distribution or will receive a cash distribution upon vesting of the awards dependent upon the terms of the individual award and the equity plan under which the award was originally granted.

In accordance with ASC 718, Compensation-Stock Compensation, the changes to the awards were accounted for as a modification. As such, the fair value of each award immediately before and after the modification was compared, and no incremental stock-compensation was recognized. As of December 31, 2015, a maximum of $14.0 million of future cash distributions may be paid over the next five years contingent upon vesting of the original awards as a result of this modification.

Stock Options

Stock options granted are in an indirect parent entity of the Company and entitles the grantee to an investor interest in that entity upon exercise. Proceeds from option exercises are paid to the Company’s indirect parent entity, which issues the equity awards. The activity for stock options in the indirect parent entity of the Company for the year ended December 31, 2015 was as follows:



	Number of Units (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2014	446		$	71.86
Granted	86		126.78
Exercised	(47	)	68.86
Forfeited/Expired	(42	)	73.78
Outstanding at December 31, 2015	443		82.69		7.9	$	19,938
Exercisable at December 31, 2015	142		71.09		7.5	7,585
Vested and expected to vest at December 31, 2015	417		82.99		7.7	18,708

The Company estimates the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires various assumptions, including fair value of the underlying investor interest, volatility, expected option life, risk-free interest rate and expected dividends. The fair value of the underlying investor interest was based on the fair value on the grant date. The expected term was based on the remaining contractual term of the options and the expected exercise behavior of employees. Expected volatility was calculated based on the volatilities of a peer group of companies. The risk-free interest rate of the option is based on the U.S. Treasury rate for the expected term of the option. The following weighted-average assumptions were used in the Black-Scholes calculations:



	Year Ended December 31,
	2015			2014			2013
Expected volatility	43.3		%	46.0		%	44.9		%
Expected term (in years)	4.0			4.4			4.8
Weighted-average risk-free interest rate	1.2		%	1.5		%	0.9		%
Weighted-average fair value of the underlying common stock	$	126.78		$	79.03		$	144.26
Expected dividends	—			—			—

Additional information regarding stock options was as follows (in thousands, except per share data):



	Year Ended December 31,
	2015		2014		2013
Weighted-average grant date fair value of options granted	$	44.25	$	30.84	$	56.44
Total intrinsic value of options exercised	1,619		3,441		26,692

Restricted Share Units

Each RSU entitles the grantee to an investor interest in an indirect parent entity of the Company, or, at the discretion of the indirect parent entity, cash equal to the fair market value of the award at the settlement date. RSU activity for the year ended December 31, 2015 was as follows:



	Number of Units (in thousands)		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2014	38		$	69.04
Granted	—		—
Vested	(21	)	69.13
Forfeited	—		68.93
Outstanding at December 31, 2015	17		68.93

The total fair value of RSUs that vested for the years ended December 31, 2015, 2014 and 2013 were $2.4 million, $3.3 million and $2.0 million, respectively.

Summary of Stock-Based Compensation Expense

Stock-based compensation was included in the following captions within the Consolidated Statements of Operations (in thousands) for the following periods:



	Year Ended December 31,
	2015		2014		2013
Cost of revenues	$	99	$	113	$	190
Technology and development	2,774		3,206		4,080
Marketing and advertising	597		957		1,006
General and administrative	4,213		3,728		3,048
Total stock-based compensation	$	7,683	$	8,004	$	8,324

Unrecognized stock-based compensation for stock options and RSUs at December 31, 2015 was as follows (in thousands, except years):



	Unrecognized Stock-Based Compensation		Weighted Average Remaining Period of Recognition (in years)
Stock options	$	11,754	3.0
RSUs	1,478		0.5
Total unrecognized stock-based compensation at December 31, 2015	$	13,232