Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Common Unit Activity

The summary of Common Unit activity under the Switch Operating Agreement for the year ended December 31, 2019 is presented below:

	Number of Units (in thousands)		Weighted Average Grant Date Fair Value per Unit
Unvested Common Units—January 1, 2019	3,986		$	11.11
Vested	(798	)	$	11.11
Unvested Common Units—December 31, 2019	3,188		$	11.11

Additional Disclosures for Unit Awards

The following additional disclosures are provided for awards under Switch, Ltd.’s then-current operating agreement for the periods prior to Switch, Inc.’s IPO and awards under the Switch Operating Agreement for the periods after Switch, Inc.’s IPO:

	Years Ended December 31,
	2019		2018		2017
Weighted average grant date fair value of Common Units	$	—	$	—	$	7.39
Total fair value of Common Units vested (in thousands)	$	9,423	$	10,659	$	1,115
Weighted average grant date fair value of Incentive Units	$	—	$	—	$	10.06
Total aggregate intrinsic value of Incentive Units converted into Common Units (in thousands)	$	—	$	—	$	318,033

Weighted-Average Assumptions Used in Estimating the Grant Date Fair Value of Incentive Unit Awards

The weighted average assumptions used in estimating the grant date fair value of Incentive Unit awards, exclusive of the CEO Award, are listed in the table below:

	Year Ended December 31, 2017
Expected volatility	29.3	%
Risk-free interest rate	1.4	%
Expected term (in years)	2.0
Dividend rate	0.6	%

Summary of Stock Option Activity

The summary of stock option activity under the 2017 Plan for the year ended December 31, 2019 is presented below:

	Number of Stock Options (in thousands)		Weighted Average Exercise Price per Stock Option		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value(in thousands)
Outstanding—January 1, 2019	7,352		$	14.16
Granted	1,217		$	10.66
Forfeited	(66	)	$	17.00
Expired	(161	)	$	17.00
Outstanding—December 31, 2019	8,342		$	13.57	8.08	$	21,430
Fully vested and expected to vest—December 31, 2019	8,342		$	13.57	8.08	$	21,430
Exercisable—December 31, 2019	5,561		$	16.06	7.58	$	4,092

Additional Disclosures Provided for Stock Options

The following additional disclosures are provided for stock options under the 2017 Plan:

	Years Ended December 31,
	2019		2018		2017
Weighted average grant date fair value	$	3.15	$	1.84	$	5.00
Total fair value of stock options vested (in thousands)	$	959	$	176	$	28,073

Weighted-Average Assumptions Used in Estimating the Grant Date Fair Value of Awards

The weighted average assumptions used in estimating the grant date fair value of stock options are listed in the table below:

	Years Ended December 31,
	2019		2018		2017
Expected volatility	29.3	%	28.2	%	31.8	%
Risk-free interest rate	2.5	%	2.8	%	1.9	%
Expected term (in years)	6.3		5.9		5.0
Dividend rate	1.1	%	1.7	%	0.6	%

Summary of RSU Activity

The summary of RSU activity, inclusive of DEU settlements, under the 2017 Plan for the year ended December 31, 2019 is presented below:

	Number of Units (in thousands)		Weighted Average Grant Date Fair Value per Unit
Unvested RSUs—January 1, 2019	2,789		$	14.93
Granted	1,555		$	9.12
Vested	(677	)	$	14.87
Forfeited	(359	)	$	12.01
Unvested RSUs—December 31, 2019	3,308		$	12.53

Summary of RSA Activity

The summary of RSA activity under the 2017 Plan for the year ended December 31, 2019 is presented below:

	Number of Awards (in thousands)		Weighted Average Grant Date Fair Value per Award
Unvested RSAs—January 1, 2019	61		$	13.08
Granted	80		$	12.55
Vested	(61	)	$	13.08
Unvested RSAs—December 31, 2019	80		$	12.55

Additional Disclosures Provided for RSUs and RSAs

The following additional disclosures are provided for RSAs under the 2017 Plan:

	Years Ended December 31,
	2019		2018
Weighted average grant date fair value	$	12.55	$	13.08
Total fair value of shares vested (in thousands)	$	768	$	—

Total Equity-Based Compensation Recognized in the Consolidated Statements of Comprehensive Income

Total equity-based compensation recognized on the consolidated statements of comprehensive income (loss) was as follows:

	Years Ended December 31,
	2019		2018		2017
	(in thousands)
Cost of revenue	$	1,491	$	1,468	$	1,289
Selling, general and administrative expense	28,033		34,265		83,501
Total equity-based compensation	$	29,524	$	35,733	$	84,790