Stock-Based Compensation

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

NOTE 10. Stock-Based Compensation

Restricted Stock Units (“RSUs”). RSUs represent the right to receive unrestricted shares of the Company’s common stock at the time of vesting, subject to any restrictions as specified in the individual holder’s award agreement. RSUs are subject to graded vesting, generally ranging between one and four years and the fair value of the RSUs is equal to the Company’s common stock price on the date of grant. RSU activity for the three months ended March 31, 2020 is as follows (in thousands, except for weighted-average grant date fair value):

	Number of RSUs			Weighted-Average Grant Date Fair Value
Outstanding as of December 31, 2019		943		$	24.68
Granted		3,167			5.40
Vested and delivered		(220	)		24.80
Forfeited		(87	)		22.82
Outstanding as of March 31, 2020 (1)		3,803			8.66

(1) The outstanding balance as of March 31, 2020 includes 80 RSUs that were vested, but not yet delivered.

Performance Stock Units (“PSUs”). PSUs represent the right to receive unrestricted shares of the Company’s common stock at the time of vesting. The fair value of the PSUs is equal to the Company’s common stock price on the date of grant. The percentage of PSUs that shall vest will range from 0% to 200% of the number of PSUs granted based on the Company’s future performance related to certain revenue targets; adjusted earnings before interest, income taxes, depreciation and amortization targets; margin targets; and/or share price over a one to three-year performance period. These PSUs are subject to cliff vesting at the end of the respective performance period. PSU activity for the three months ended March 31, 2020 is as follows (in thousands, except for weighted-average grant date fair value):

	Number of PSUs			Weighted-Average Grant Date Fair Value
Outstanding as of December 31, 2019		953		$	26.60
Granted (1)		715			5.40
Vested and delivered		—			—
Forfeited or cancelled (1)		(775	)		27.13
Outstanding as of March 31, 2020		893			8.78

(1) Included in "Forfeited or cancelled" are 558 shares that were cancelled and replaced by new grants during the three months ended March 31, 2020.

Stock Options. Stock options represent the right to purchase shares of the Company’s common stock at the time of vesting, subject to any restrictions as specified in the individual holder’s award agreement. Stock options are subject to three-year cliff vesting and expire 10 years from the grant date. Stock option activity for the three months ended March 31, 2020 is as follows (in thousands, except for weighted-average grant date fair value):

	Number of Options		Weighted-Average Grant Date Fair Value
Outstanding as of December 31, 2019		—	$	—
Granted		513		2.80
Vested and delivered		—		—
Forfeited		—		—
Outstanding as of March 31, 2020		513		2.80

The fair value of the stock options granted during the three months ended March 31, 2020 are estimated on the grant date using the Black-Scholes option pricing model, using the following assumptions:

Risk-free interest rate		1.01	%
Weighted-average volatility		53.08	%
Dividend yield		0	%
Expected years until exercise	6.5