Share-Based Compensation
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
SHARE-BASED COMPENSATION

Stock Options

The Company has granted stock awards to eligible participants under the LTIP. The stock awards include options to purchase the Company’s Class B Shares. These stock options include a combination of service and market conditions, as further described below. In addition, these stock options include a performance vesting condition, a Qualified Public Offering (see Note 7), which is not considered to be probable as of December 31, 2016. As a result, no share-based compensation expense for stock options has been recognized and none will be recognized for these stock awards until the performance condition is considered to be probable. When the performance condition is considered probable, the stock awards will vest in accordance with the underlying service and market conditions.

The Company calculated the grant date fair value of stock options that vest over a service period using the Black Scholes model. For stock options that contain a market condition related to the return on investment that the Company’s stockholders achieve, the options were valued using a lattice-based option valuation model. The assumptions used in these calculations are noted in the following table. Expected volatilities are based on implied volatilities from comparable companies. The expected time to liquidity is based on management’s estimate. The risk-free rate is based on the U.S. Treasury yield curve for a term equivalent to the estimated time to liquidity. The expected dividend yield is 0% for all stock awards.
 
Year Ended December 31,
 
2016
 
2015
 
2014
Option valuation assumptions:
 
 
 
 
 
Expected dividend yield
—%
 
—%
 
—%
Expected volatility
56%
 
55%
 
73%
Risk-free interest rate
1.64%
 
1.69%
 
1.63%
Expected term (in years)
6.3
 
6.4
 
5.0


A summary of the changes in stock options outstanding during the year ended December 31, 2016, is as follows:
 
Number of Options
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contract Term (years)
 
Aggregate Intrinsic Value
Options outstanding as of December 31, 2015
765,375

 
$
12.46

 
 
 
 
Granted
247,600

 
$
17.01

 
 
 
 
Canceled
(117,875
)
 
$
15.25

 
 
 
 
Options outstanding as of December 31, 2016
895,100

 
$
13.35

 
8.2
 
$
3,457,748

Exercisable as of December 31, 2016
108,791

 
$
11.42

 
7.7
 
$
629,405


No options expired or were forfeited for the year ended December 31, 2016.
The following is provided for stock options granted:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Weighted average grant date fair value
$
8.96

 
$
7.44

 
$
5.38



Restricted awards

A summary of the changes in restricted stock awards outstanding during the year ended December 31, 2016, is as follows:
 
Shares
 
Weighted Average Grant Date Fair Value
Nonvested at January 1, 2016
40,000

 
$
10.00

Vested
10,000

 
$
10.00

Nonvested at December 31, 2016
30,000

 
$
10.00



No restricted awards were granted or forfeited during the year ended December 31, 2016.

The following is provided for the share award vesting from the plans:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Weighted average grant date fair value
$
—

 
$
—

 
$
10.00



No restricted stock was granted, canceled or forfeited during the years ended December 31, 2016 and 2015. During the year ended December 31, 2014, the Company granted 50,000 restricted Class B Shares that vest in five equal installments on each of the first five anniversaries of the grant date. This restricted stock includes a service condition and a performance vesting condition (a Qualified Public Offering), which was not considered to be probable of occurring as of December 31, 2016. As a result, no share-based compensation expense was recognized for the years ended December 31, 2016, 2015 and 2014, and none will be recognized for restricted stock until the performance condition is considered to be probable. When the performance condition is considered probable, the stock awards will vest in accordance with the underlying service condition.