Stock-Based Compensation

9 Months Ended

Sep. 30, 2018

13.	Stock-Based Compensation

The Company recognizes compensation expense for all equity-based compensation awards issued to employees and directors that are expected to vest. Compensation cost is based on the fair value of awards as of the grant date. The Company recognized $0.4 million and $0.5 million of stock-based compensation expense related to equity awards for the three months ended September 30, 2018 and 2017, respectively, and recognized $1.4 million and $1.8 million of stock-based compensation expense related to equity awards for the nine months ended September 30, 2018 and 2017, respectively, under the fair value method. In addition to the equity-based compensation expense recognized, the Company also recognized $105,000 and $92,000 of stock-based compensation related to the change in the fair value of cash-settled restricted stock units (RSUs) during the three months ended September 30, 2018 and 2017, respectively. During the nine months ended September 30, 2018 and 2017, the Company recorded an expense of $165,000 and a net reduction of $80,000 in the fair value of cash-settled RSUs, respectively.

During the three and nine months ended September 30, 2018, the Company granted 0 and 388,526 time-based RSUs with an aggregate fair value of $0.0 million and $1.3 million, respectively. For the three and nine months ended September 30, 2017, the Company granted 0 and 396,677 time-based RSUs with an aggregate fair value of $0.0 million and $1.4 million, respectively. A portion of the time-based RSUs vest quarterly in equal amounts over the course of eight quarters, a portion vest one year after grant and the remainder vest annually in equal amounts over the course of three years. The fair value of the time-based RSUs is expensed ratably over the requisite service period, which ranges from one to three years.

During the nine months ended September 30, 2018 and 2017, the Company did not grant performance-based RSUs or stock options.