Stock-Based Compensation

9 Months Ended

Sep. 30, 2018

13. Stock-Based Compensation

During the nine months ended September 30, 2018, we granted performance share units (which we refer to as “PSUs”) covering up to 0.3 million shares of common stock, assuming maximum level of performance, with a grant date fair value of $28.10 per share that are subject to both service and performance vesting conditions. The quantity of shares that will vest under the PSUs range from 0% to 250% of a targeted number of shares for each participant and will be determined based on an achievement of a three-year pre-tax income performance goal. During the nine months ended September 30, 2018, we also granted restricted stock units (which we refer to as “RSUs”) covering 0.3 million shares of common stock with a grant date fair value of $30.43 per share that vest over a one to three-year period. As of September 30, 2018, we had no remaining unvested restricted stock awards (which we refer to as “RSAs”) outstanding.

A summary of our outstanding RSUs and PSUs, assuming maximum level of performance, are as follows (in thousands, except years):


	As of September 30, 2018
Unvested awards/units		863
Unrecognized compensation cost	$	13,241
Period to recognize compensation cost		1.7 years

During the three months ended September 30, 2018 and 2017, we recognized stock-based compensation expense of $3.8 million and $2.6 million, respectively. During the nine months ended September 30, 2018 and 2017, we recognized stock-based compensation expense of $10.1 million and $6.5 million, respectively. Stock-based compensation expense is included in selling, general, and administrative on our Consolidated Statements of Operations.