Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We recognized $1.9 million and $(0.7) million in pre-tax compensation expense related to stock options and restricted stock units during the three months ended March 31, 2018 and 2017, respectively. Stock compensation expense recognized during the three months ended March 31, 2017 was primarily attributable to the reversal of unvested stock compensation previously granted to former executives. During the three months ended March 31, 2018, we granted approximately 452,000 stock options, 673,000 market-based performance restricted stock units and 490,000 time-vesting restricted stock units. The stock options granted were valued using a Black-Scholes pricing model with the following assumptions: an expected volatility of 44.97% to 53.51%, a risk-free interest rate of 2.07% to 2.68%, no expected dividend yield, and an expected term of 3.50 to 5.75 years. The weighted-average exercise price of the options granted during the three months ended March 31, 2018 was $8.72 and the weighted-average grant-date fair value was $3.80. Performance-based restricted stock units are valued using a Monte Carlo simulation. Time-vesting restricted stock units are valued using the closing price on the trading day immediately preceding the day of the grant. The weighted-average grant date fair value of the market-based performance and time-vesting restricted stock units granted during the three months ended March 31, 2018 was $9.03 and $8.58, respectively.