Share-Based Compensation
 9 Months Ended
Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

11. Share-Based Compensation

Share-based compensation expense for all equity based programs, including stock options, restricted stock units and the employee stock purchase plan, for the three and nine months ended September 30, 2016 and 2015 was recognized in the accompanying Consolidated Statements of Operations as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Research and development

 

$

7,039

 

 

$

9,039

 

 

$

20,962

 

 

$

19,798

 

General and administrative

 

 

2,164

 

 

 

3,367

 

 

 

8,782

 

 

 

9,660

 

Total share-based compensation expense

 

$

9,203

 

 

$

12,406

 

 

$

29,744

 

 

$

29,458

 

 

We did not recognize a tax benefit related to share-based compensation expense during the three and nine months ended September 30, 2016 and 2015, respectively, as we maintain net operating loss carryforwards and have established a valuation allowance against the entire net deferred tax asset as of September 30, 2016.

The following table summarizes the activity relating to our options to purchase common stock for the nine months ended September 30, 2016:

 

 

 

Number of Options

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term (Years)

 

 

Aggregate

Intrinsic

Value (Thousands)

 

Outstanding at December 31, 2015

 

 

5,360,257

 

 

$

51.53

 

 

 

 

 

 

 

 

 

Granted

 

 

1,829,537

 

 

 

21.85

 

 

 

 

 

 

 

 

 

Exercised

 

 

(139,396

)

 

 

7.85

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(1,309,127

)

 

 

54.27

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2016 (a)

 

 

5,741,271

 

 

$

42.51

 

 

 

7.4

 

 

$

52,392

 

Vested and expected to vest at September 30, 2016

 

 

5,351,476

 

 

$

42.80

 

 

 

7.2

 

 

$

48,604

 

Exercisable at September 30, 2016

 

 

2,954,077

 

 

$

43.14

 

 

 

5.8

 

 

$

27,713

 

 

 

(a)

Includes 42,500 performance-based stock options granted to our executives in the first quarter of 2015, which vest contingent on approval by the U.S. Food and Drug Administration (“FDA”) to commercially distribute, sell or market rucaparib. Stock compensation expense will be recognized when the condition for vesting is probable of being met.

 

The aggregate intrinsic value in the table above represents the pretax intrinsic value, based on our closing stock price of $36.05 as of September 30, 2016, which would have been received by the option holders had all option holders with in-the-money options exercised their options as of that date.

The following table summarizes information about our stock options as of and for the three and nine months ended September 30, 2016 and 2015:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Weighted-average grant date fair value per share

 

$

17.09

 

 

$

56.22

 

 

$

16.07

 

 

$

52.98

 

Intrinsic value of options exercised

 

$

930,417

 

 

$

5,307,365

 

 

$

1,555,342

 

 

$

15,361,206

 

Cash received from stock option exercises

 

$

687,332

 

 

$

1,953,938

 

 

$

1,094,855

 

 

$

4,534,288

 

 

As of September 30, 2016, the unrecognized share-based compensation expense related to unvested options, adjusted for expected forfeitures, was $83.7 million and the estimated weighted-average remaining vesting period was 2.8 years.

 

During 2016, we issued restricted stock units (“RSUs”) to certain employees under the 2011 Stock Incentive Plan. The RSUs vest over either a two-year period or over a four-year period and are payable in shares of our common stock at the end of the vesting period. RSUs are measured based on the fair value of the underlying stock on the grant date. Shares issued on the vesting dates are net of the minimum statutory tax to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be lower than the actual number of RSUs vested.

 

The following table summarizes the activity relating to our unvested RSUs for the nine months ended September 30, 2016:

 

 

 

Number of Units

 

 

Weighted-

Average

Grant Date

Fair Value

 

Unvested as of December 31, 2015

 

 

—

 

 

$

—

 

Granted

 

 

526,180

 

 

 

21.65

 

Vested (a)

 

 

(9,750

)

 

 

19.37

 

Forfeited

 

 

(33,245

)

 

 

19.24

 

Unvested as of September 30, 2016

 

 

483,185

 

 

$

21.86

 

Expected to vest after September 30, 2016

 

 

398,525

 

 

$

21.80

 

 

 

(a)

During the second quarter of 2016, we accelerated the vesting of RSUs for certain employees.

 

As of September 30, 2016, the unrecognized share-based compensation expense related to unvested RSUs, adjusted for expected forfeitures, was $8.4 million and the estimated weighted-average remaining vesting period was 3.4 years.