Equity-based Compensation Plans

9 Months Ended

Sep. 30, 2019

Equity-based Compensation Plans

Equity-based Compensation Plans

16. Equity-based Compensation Plans

The following table summarizes the equity-based compensation that has been included in the following line items within the consolidated statements of operations during:

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
($ in thousands)	2019		2018		2019		2018
Equity-based compensation expense:
Costs applicable to revenue	$	231	$	223	$	646	$	570
Selling, general, and administrative		2,703		3,965		8,867		9,965
Total equity-based compensation expense	$	2,934	$	4,188	$	9,513	$	10,535

The following table summarizes stock option activity for the nine months ended September 30, 2019:

	Stock Options
	(in thousands)
Outstanding at December 31, 2018		885
Forfeited		(127)
Outstanding at September 30, 2019		758
Options exercisable at September 30, 2019		353

The following table summarizes restricted stock unit activity for the nine months ended September 30, 2019:

	Restricted
	Stock Units
	(in thousands)
Outstanding at December 31, 2018		1,426
Granted		140
Vested		(249)
Forfeited		(92)
Outstanding at September 30, 2019		1,225

The weighted-average grant date fair value of restricted stock units granted during the nine months ended September 30, 2019 was $13.63.

On June 27, 2019, Thomas F. Wolfe, President of Good Sam Enterprises, LLC, a subsidiary of the Company, notified the Company of his plan to retire from his role, effective August 1, 2019 (“Wolfe Transition Date”). On July 2, 2019, the Company entered into a consulting agreement (the “Wolfe Consulting Agreement”) with Mr. Wolfe for him to provide consulting services for up to three years from the Wolfe Transition Date for which he is entitled to a monthly consulting fee of $10,000. On July 2, 2019, the Company also entered into a letter agreement with Mr. Wolfe pursuant to which Mr. Wolfe’s outstanding equity awards would remain in place and continue to vest in accordance with their terms as long as the Wolfe Consulting Agreement remains in effect, subject to the applicable award agreements. The restricted stock unit awards that would have been cancelled upon termination were considered modified as of July 2, 2019. Any previously recognized equity-based compensation expense on the unvested modified awards was reversed and the modification date fair value of those restricted stock units will be recognized over the vesting period, which is commensurate with the consulting services provided under the Wolfe Consulting Agreement.