Share-based compensation expense was recorded net of estimated forfeitures for 2019, 2018 and 2017, such that expense was recorded only for those share-based awards that are expected to vest. In 2019, 2018 and 2017, we recorded share-based compensation and related benefits as follows:



	Year ended December 31,
(Dollars in thousands)	2019			2018			2017
Share-based compensation expense	$	66,815		$	45,675		$	36,900
Income tax benefit related to share-based compensation expense	(16,152		)	(10,997		)	(12,845		)
Capitalized compensation costs	1,517			1,466			1,071

Our 2006 Equity Incentive Plan (the “2006 Incentive Plan”) was adopted in May 2006, and is amended from time to time. The 2006 Incentive Plan provides for the grant of various types of incentive awards, of which the following have been granted: (i) stock options; (ii) restricted stock awards; (iii) restricted stock units (subject to either time-and/or performance-based vesting); and (iv) other cash or stock settled equity awards. Eligible participants in the 2006 Incentive Plan include directors, employees and consultants.

Restricted stock awards/units are counted against the available-for-issuance limits of the 2006 Incentive Plan as two shares for every one share awarded. Further, if shares acquired under any such award are forfeited, repurchased by SVB Financial, used to satisfy the tax withholding obligations related to an award or otherwise canceled and would otherwise return to the 2006 Incentive Plan, two times the number of such shares will return to the 2006 Incentive Plan and will again become available for issuance.

Under the terms of the 2006 Incentive Plan and subject to certain exceptions: (i) restricted stock awards/units are subject to a minimum of at least three years of annual vesting, and (ii) performance-based restricted stock awards/units and stock options are subject to a minimum of at least one year of vesting. Generally in practice, restricted stock awards/units vest annually over four years and require continued employment or other service through the vesting period. Performance-based restricted stock awards/units granted to executives generally vest upon meeting certain performance-based objectives over a three year period and, typically the passage of time, and require continued employment or other service through the vesting period. Stock options typically vest annually over four years, from the grant date based on continued employment or other service, and expire no later than seven years after the grant date.

We maintain the 1999 ESPP under which participating employees may annually contribute up to 10 percent of their gross compensation (not to exceed $25,000) to purchase shares of our common stock at 85 percent of its fair market value at either the beginning or end of each six-month offering period, whichever price is less. To be eligible to participate in the ESPP, an employee must, among other requirements, be employed by the Company on both the date of offering and date of purchase, and be employed customarily for at least 20 hours per week and at least five months per calendar year. We issued 161,410 shares and received $27.9 million in cash under the ESPP in 2019. At December 31, 2019, a total of 1,337,808 shares of our common stock were still available for future issuance under the ESPP.

As of December 31, 2019, unrecognized share-based compensation expense was as follows:



(Dollars in thousands)	Unrecognized Expense		Weighted Average Expected Recognition Period - in Years
Stock options	$	14,313	2.52
Restricted stock awards/units	101,310		2.66
Total unrecognized share-based compensation expense	$	115,623

The fair values of share-based awards for employee stock options and employee stock purchases made under our ESPP were estimated using the Black-Scholes option pricing model. The fair values of restricted stock units were based on our closing stock price on the date of grant. The following weighted average assumptions and fair values were used for our employee stock options and restricted stock units:



Equity Incentive Plan Awards	2019			2018			2017
Weighted average expected term of options - in years	4.6			4.8			4.9
Weighted average expected volatility of the Company's underlying common stock	35.5		%	34.7		%	33.7		%
Risk-free interest rate	2.26			2.82			1.81
Expected dividend yield	—			—			—
Weighted average grant date fair value - stock options	$	83.50		$	105.81		$	57.81
Weighted average grant date fair value - restricted stock units	243.65			294.50			181.23



ESPP	2019			2018			2017
Expected term in years	0.5			0.5			0.5
Weighted average expected volatility of the Company's underlying common stock	38.1		%	32.2		%	31.2		%
Risk-free interest rate	2.40			1.79			0.80
Expected dividend yield	—			—			—
Weighted average grant date fair value	$	52.90		$	62.76		$	41.70

The expected term is based on the implied term of the stock options using factors based on historical exercise behavior. The expected volatilities are based on a blended rate consisting of our historic volatility and our expected volatility over a five-year term which is an indicator of expected volatility and future stock price trends. For 2019, 2018 and 2017, expected volatilities for the ESPP were equal to the historical volatility for the previous six-month periods. The expected risk-free interest rates were based on the yields of U.S. Treasury securities, as reported by the Federal Reserve Bank of New York, with maturities equal to the expected terms of the employee stock options.



	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life - in Years	Aggregate Intrinsic Value of In-The-Money Options
Outstanding at December 31, 2018	679,659		$	137.19
Granted	126,945		249.15
Exercised	(154,897	)	86.96
Forfeited	(25,580	)	213.26
Expired	(720	)	64.37
Outstanding at December 31, 2019	625,407		169.33		3.63	$	55,364,613
Vested and expected to vest at December 31, 2019	609,849		167.31		3.58	55,128,404
Exercisable at December 31, 2019	361,503		124.70		2.35	46,760,360

The aggregate intrinsic value of outstanding options shown in the table above represents the pre-tax intrinsic value based on our closing stock price of $251.04 as of December 31, 2019. The following table summarizes information regarding stock options outstanding and exercisable as of December 31, 2019:



	Outstanding Options				Exercisable Options
Range of Exercise Prices	Shares	Weighted Average Remaining Contractual Life - in Years	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
$71.11 - 105.14	55,724	0.43	$	73.67	55,724	$	73.67
105.15 - 105.84	114,449	3.33	105.18		79,188	105.18
105.85 - 108.59	99,936	1.33	107.94		99,936	107.94
108.60 - 149.65	67,573	2.26	129.13		67,573	129.13
149.66 - 180.62	80,583	4.34	178.07		37,320	178.04
180.63 - 247.01	11,966	6.18	226.22		1,578	210.73
247.02 - 255.58	117,265	6.33	250.43		—	—
255.59 - 315.12	75,647	5.33	305.18		19,617	304.39
315.13 - 324.77	2,264	5.60	324.77		567	324.77
Total	625,407	3.63	169.33		361,503	124.70

We expect to satisfy the exercise of stock options by issuing shares under the 2006 Incentive Plan. All future awards of stock options and restricted stock units will be issued from the 2006 Incentive Plan. At December 31, 2019, 3,421,734 shares were available for future issuance.



	Shares		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2018	597,296		$	194.48
Granted (1)	543,938		243.65
Vested	(227,707	)	154.96
Forfeited	(65,555	)	195.69
Nonvested at December 31, 2019	847,972		236.54



	Year ended December 31,
(Dollars in thousands)	2019		2018		2017
Total intrinsic value of stock options exercised	$	23,088	$	40,681	$	36,173
Total grant date fair value of stock options vested	5,735		5,823		6,094
Total intrinsic value of restricted stock vested	56,101		63,917		40,925
Total grant date fair value of restricted stock vested	35,191		28,813		23,383