Employee Stock-Based Compensation Expense

Employee stock-based compensation expense, net of the amount capitalized in internally developed software, is as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Expense from Time-based awards^(a)	$	1,872	$	1,061	$	3,963	$	1,861
Expense from Performance-based awards ^(a)(b)		(872)		1,101		250		1,569
Expense from bonus to be settled in shares ^(c)		920		—		1,818		—
Equity-based compensation capitalized^(a)		(124)		(6)		(184)		(6)
Equity-based compensation expense		1,796		2,156		5,847		3,424
Tax benefit from equity-based compensation		(254)		(305)		(827)		(484)
Excess tax benefit from equity-based compensation		57		(73)		113		(145)
Net compensation cost	$	1,599	$	1,778	$	5,133	$	2,795

(a)

Includes expense recognized and costs capitalized in connection with the awards granted to booj employees and former owners at the time of acquisition.

(b)

Expense recognized for performance-based awards is re-assessed each quarter based on expectations of achievement against the performance conditions. As of June 30, 2019, certain conditions were no longer deemed probable of being met, primarily for awards that must achieve a certain amount of revenue over a three-year performance period, and the cumulative expense previously recognized was reversed in the current period.

(c)

In 2019, the Company revised its annual bonus plan so that a portion of the bonus for most employees will be settled in shares if the Company meets certain performance metrics. The share amounts to be issued will be determined based on the stock price at the time of vesting in early 2020. These amounts are recognized as “Accrued liabilities” in the accompanying Condensed Consolidated Balance Sheet and are not included in “Additional paid-in capital” until shares are issued.

Restricted Stock Units


	Time-based restricted stock units	Weighted average grant date fair value per share
Balance, January 1, 2019	298,610	$	51.97
Granted	158,342	$	38.61
Shares vested (including tax withholding) ^(a)	(66,918)	$	46.66
Forfeited	(5,844)	$	46.41
Balance, June 30, 2019	384,190	$	47.48

(a)

Pursuant to the terms of the 2013 Incentive Plan, RSUs withheld by the Company for the payment of the employee's tax withholding related to an RSU vesting are added back to the pool of shares available for future awards.

Restricted Stock Units


	Performance-based restricted stock units	Weighted average grant date fair value per share
Balance, January 1, 2019	179,615	$	55.75
Granted ^(a)	93,028	$	41.37
Shares vested	(5,620)	$	56.59
Forfeited	(30,716)	$	52.97
Balance, June 30, 2019	236,307	$	39.24

(a)	Represents the total participant target award.