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82
Note 12—Employee Stock-Based Compensation (continued)
Excluding non-plan equity awards granted in 2013, options and restricted stock units granted on or after July 21,
2010 are issued under the 2010 Equity Incentive Plan and options granted prior to July 21, 2010 were issued under
the 2001 Stock Plan, the predecessor to our 2010 Equity Incentive Plan. We have reserved shares of our Class A
common stock for issuance under the 2010 Equity Incentive Plan.
The following table summarizes stock options and restricted stock units granted:
Year Ended December 31,
2015 2014 2013
(In thousands, except per share data)
Stock options granted —106 2,236
Weighted-average exercise price $ — $20.92 $18.88
Weighted-average grant-date fair value $ — $10.75 $7.20
Restricted stock units granted 1,980 2,035 1,272
Weighted-average grant-date fair value $16.34 $19.49 $22.16
We estimated the fair value of each stock option grant on the date of grant using the following weighted-average
assumptions:
Year Ended December 31,
2015 2014 2013
Risk-free interest rate —% 1.8% 1.2%
Expected term (life) of options (in years) —5.79 5.86
Expected dividends —— —
Expected volatility —% 54.0%43.4%
Determining the fair value of stock-based awards at their respective grant dates requires considerable judgment,
including estimating expected volatility and expected term (life). We based our expected volatility on the historical
volatility of comparable public companies over the option’s expected term. We calculated our expected term based on
the simplified method, which is the mid-point between the weighted-average graded-vesting term and the contractual
term. The simplified method was chosen as a means to determine expected term as we have limited historical option
exercise experience as a public company. We derived the risk-free rate from the average yield for the five-and seven-
year zero-coupon U.S. Treasury Strips. We estimate forfeitures at the grant date based on our historical forfeiture rate
and revise the estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
Stock option activity for the year ended December 31, 2015 was as follows:
Options Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Life
(in Years) Aggregate
Intrinsic Value
(In thousands, except per share data and years)
Outstanding at December 31, 2014 3,622 $18.91
Options granted — —
Options exercised (98)12.55
Options canceled (176)21.40
Outstanding at December 31, 2015 3,348 $18.97 5.70 $ 5,921
Vested or expected to vest at December 31, 2015 3,320 18.96 5.68 $ 5,907
Exercisable at December 31, 2015 2,679 18.99 5.33 $ 5,351
The total intrinsic value of options exercised was $0.5 million, $14.0 million and $17.9 million for the years ended
December 31, 2015, 2014, and 2013, respectively.