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Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2018
Share-Based Compensation  
Schedule of share-based compensation expense included in the consolidated statements of operations

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

(In thousands)

    

2018

    

2017

    

2016

Research and development

 

$

25,563

 

$

22,691

 

$

20,202

Selling, general and administrative

 

 

25,750

 

 

26,454

 

 

20,967

Total share-based compensation expense

 

$

51,313

 

$

49,145

 

$

41,169

 

Schedule of share-based compensation expense by award type included in the consolidated statements of operations

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

(In thousands)

    

2018

    

2017

    

2016

Innoviva equity:

 

 

 

 

 

 

 

 

 

Options

 

$

280

 

$

2,973

 

$

3,973

RSUs

 

 

 —

 

 

224

 

 

1,547

RSAs

 

 

457

 

 

660

 

 

2,597

Performance RSAs

 

 

 —

 

 

 1

 

 

1,005

Theravance Biopharma equity:

 

 

 

 

 

 

 

 

 

Options

 

 

8,441

 

 

7,969

 

 

7,591

RSUs

 

 

34,077

 

 

25,959

 

 

20,946

Performance RSAs and RSUs

 

 

4,707

 

 

9,224

 

 

1,808

ESPP

 

 

3,351

 

 

2,135

 

 

1,702

Total share-based compensation expense

 

51,313

 

$

49,145

 

$

41,169

 

Schedule of unrecognized compensation cost, net of expected forfeitures, and the estimated weighted-average amortization period, using the straight-line attribution method

As of December 31, 2018, the unrecognized share-based compensation cost, net of actual forfeitures, and the estimated weighted‑average amortization period, using the straight-line attribution method, was as follows:

 

 

 

 

 

 

 

 

Unrecognized

 

WeightedAverage

 

 

Compensation

 

Amortization Period

(In thousands, except amortization period)

    

Cost

    

(Years)

Innoviva equity:

 

 

 

 

 

Options

 

$

 —

 

 —

RSAs

 

 

64

 

0.23

Theravance Biopharma equity:

 

 

 

 

 

Options

 

 

18,147

 

2.84

RSUs

 

 

62,718

 

2.49

Performance RSAs and RSUs (1) 

 

 

3,604

 

1.14

ESPP

 

 

2,322

 

1.03

Total

 

$

86,855

 

 


(1)

Represents unrecognized share-based compensation cost associated with the Theravance Biopharma performance-contingent awards described above that are probable of vesting.

Summary of option activity under the 2013 EIP and 2014 NEEIP

 

 

 

 

 

 

 

    

Number of Shares 

   

Weighted-Average

 

 

Subject

 

Exercise Price

 

 

to Outstanding Options

 

of Outstanding Options

Outstanding at December 31, 2015

 

2,311,164

 

$

23.07

Granted

 

474,675

 

 

24.06

Exercised

 

(197,328)

 

 

22.18

Forfeited

 

(357,716)

 

 

19.83

Outstanding at December 31, 2016

 

2,230,795

 

$

23.88

Granted

 

720,350

 

 

32.60

Exercised

 

(275,776)

 

 

22.61

Forfeited

 

(166,800)

 

 

25.70

Outstanding at December 31, 2017

 

2,508,569

 

$

26.40

Granted

 

755,800

 

 

27.10

Exercised

 

(74,692)

 

 

18.65

Forfeited

 

(126,508)

 

 

27.95

Outstanding at December 31, 2018

 

3,063,169

 

$

26.70

 

Schedule of RSU and RSA activity (including performance RSUs and RSAs)

 

 

 

 

 

 

    

Number of Shares

    

Number of Shares

 

 

Subject to

 

Outstanding Subject to

 

 

Outstanding RSUs

 

Performance Conditions (RSAs)

Outstanding at December 31, 2015

 

2,988,041

 

 —

Granted

 

2,344,034

 

1,575,000

Released

 

(1,185,905)

 

 —

Forfeited

 

(537,052)

 

(135,000)

Outstanding at December 31, 2016

 

3,609,118

 

1,440,000

Granted

 

1,165,578

 

 —

Released

 

(1,420,485)

 

 —

Forfeited

 

(456,453)

 

(135,000)

Outstanding at December 31, 2017

 

2,897,758

 

1,305,000

Granted

 

1,772,263

 

 —

Released

 

(1,405,294)

 

(326,250)

Forfeited

 

(195,324)

 

 —

Outstanding at December 31, 2018

 

3,069,403

 

978,750

 

Schedule of range of assumptions used to estimate the fair value of share options granted and rights granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

    

2018

    

2017

    

2016

Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-free interest rate

 

 

2.3% - 3.0%

 

 

2.0% -  2.1%

 

 

1.1% - 1.9%

Expected term (in years)

 

 

6.0

 

 

6.0

 

 

6.0

Volatility

 

 

53% - 54%

 

 

54% - 56%

 

 

53% - 73%

Dividend yield

 

 

 —

 

 

 —

 

 

 —

Weighted-average estimated fair value

 

$

14.32

 

$

17.29

 

$

13.28

2013 ESPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-free interest rate

 

 

2.1% - 2.8%

 

 

0.9% - 1.7%

 

 

0.4% - 1.0%

Expected term (in years)

 

 

0.5 - 2.0

 

 

0.5 - 2.0

 

 

0.5 - 2.0

Volatility

 

 

42% - 53%

 

 

41% - 56%

 

 

54% - 65%

Dividend yield

 

 

 —

 

 

 —

 

 

 —

Weighted-average estimated fair value

 

$

9.13

 

$

7.09

 

$

9.63