Stock-Based Compensation

6 Months Ended

Jun. 30, 2019

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We recognized $2.0 million and $1.1 million in pre-tax compensation expense related to stock options and restricted stock units during the three months ended June 30, 2019 and 2018, respectively, and $2.7 million and $3.0 million during the six months ended June 30, 2019 and 2018, respectively. During the six months ended June 30, 2019, we granted approximately 255,000 stock options, 278,000 market-based performance restricted stock units and 193,000 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 48.28% to 55.17%, a risk-free interest rate of 2.30% to 2.34%, and an expected term of 3.50 to 5.75 years. The weighted-average exercise price of the options granted during the six months ended June 30, 2019 was $20.87 and the weighted-average grant-date fair value was $9.33. 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 six months ended June 30, 2019 was $15.83 and $11.42, respectively.