Stock Based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Share-based Payment Arrangement [Abstract] |
|
| Summary of Stock Option Activity Under Equity-Based Plans |
The following table summarizes stock option activity under our equity-based plan for the year ended December 31, 2019: | | | | | | | | | | | | Number
of Shares | Weighted
Average
Exercise
Price | Weighted
Average
Remaining
Contractual
Term (in years) | Aggregate
Intrinsic
Value
(in millions) | Balance at December 31, 2018 | 655,515 |
| $ | 12.90 |
| 4.91 | $ | 19 |
| Exercised | (187,504 | ) | 10.80 |
|
|
|
| Expired | (6,000 | ) | 0.50 |
| | | Balance at December 31, 2019 | 462,011 |
| $ | 13.90 |
| 4.02 | $ | 20 |
| Exercisable at December 31, 2019 | 462,011 |
| $ | 13.90 |
| 4.02 | $ | 20 |
| Vested and expected to vest at December 31, 2019 | 462,011 |
| $ | 13.90 |
| 4.02 | $ | 20 |
|
|
| Additional Disclosure for Stock Options |
| | | | | | | | | | | | Year Ended December 31, | Additional Disclosures for Stock Options (in millions) | 2019 | 2018 | 2017 | Total fair value of options vested | $ | 1 |
| $ | 4 |
| $ | 7 |
| Total intrinsic value of options exercised | 9 |
| 24 |
| 36 |
| Cash received from options exercised | 2 |
| 7 |
| 11 |
|
|
| Summary of RSU and RSA Activity Under Equity-Based Plans |
The following tables summarize RSU and RSA activity under our equity-based plans for the year ended December 31, 2019: | | | | | | | | | | | | Time-based RSUs and RSAs | | Total Number of RSUs | Total Number of RSAs | Total Number of Shares | Weighted-Average Grant Date Fair Value | Nonvested at December 31, 2018 | 1,560,685 |
| 98,445 |
| 1,659,130 |
| $ | 33.88 |
| Granted | 616,224 |
| — |
| 616,224 |
| 60.99 |
| Vested | (891,633 | ) | (37,309 | ) | (928,942 | ) | 32.53 |
| Forfeited | (180,547 | ) | — |
| (180,547 | ) | 38.89 |
| Nonvested at December 31, 2019 | 1,104,729 |
| 61,136 |
| 1,165,865 |
| $ | 48.47 |
|
| | | | | | | | | | | | Performance-based RSUs and RSAs | | Total Number of RSUs | Total Number of RSAs | Total Number Shares | Weighted-Average Grant Date Fair Value | Nonvested at December 31, 2018 | 176,869 |
| 248,347 |
| 425,216 |
| $ | 42.02 |
| Granted | 83,110 |
| — |
| 83,110 |
| 59.83 |
| Vested | (155,589 | ) | (122,387 | ) | (277,976 | ) | 39.45 |
| Cancelled | (61,400 | ) | — |
| (61,400 | ) | 61.75 |
| Forfeited | (27,238 | ) | (11,103 | ) | (38,341 | ) | 41.52 |
| Nonvested at December 31, 2019 | 15,752 |
| 114,857 |
| 130,609 |
| $ | 49.70 |
|
|
| Additional Disclosures for Equity-Based Plans |
| | | | | | | | | | | | Time-based RSUs and RSAs | | Year Ended December 31, | Additional Disclosures for equity-based plans | 2019 | 2018 | 2017 | Total grant date fair value of shares granted (in millions) | $ | 38 |
| $ | 38 |
| $ | 37 |
| Total grant date fair value of shares vested (in millions) | $ | 30 |
| $ | 28 |
| $ | 21 |
| Shares withheld to settle payroll tax liabilities related to vesting of shares held by employees | 315,762 |
| 348,010 |
| 332,857 |
|
| | | | | | | | | | | | Performance-based RSUs and RSAs | | Year Ended December 31, | Additional Disclosures for equity-based plans | 2019 | 2018 | 2017 | Total grant date fair value of shares granted (in millions) | $ | 4 |
| $ | 14 |
| $ | 10 |
| Total grant date fair value of shares vested (in millions) | $ | 11 |
| $ | 7 |
| $ | — |
| Shares withheld to settle payroll tax liabilities related to vesting of shares held by employees | 135,877 |
| 110,222 |
| 2,244 |
|
|
| Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options |
In applying the Black Scholes option valuation model for the ESPP options, we use the following assumptions: | | | | | | | | | Year Ended December 31, | (in millions) | 2019 | 2018 | 2017 | Expected Term (in Years) | 0.5 |
| 0.5 |
| 0.5 |
| Expected Volatility | 27-42% |
| 27-37% |
| 28-37% |
| Risk-Free Interest Rate | 1.6-2.5% |
| 1.42-2.5% |
| 0.62-1.42% |
| Expected Dividend Yield | 0 | % | 0 | % | 0 | % | | | | | Shares Issued under ESPP | 207,324 |
| 175,966 |
| 224,928 |
|
|
| Stock-based Compensation Expense |
Stock based compensation expense and other disclosures for stock based awards made to our employees pursuant to the equity plans was as follows: | | | | | | | | | | | | Year Ended December 31, | (in millions) | 2019 | 2018 | 2017 | Cost of providing services | $ | 8 |
| $ | 10 |
| $ | 8 |
| Sales and marketing | 3 |
| 8 |
| 6 |
| General and administrative | 28 |
| 22 |
| 14 |
| Systems development and programming costs | 2 |
| 4 |
| 4 |
| Total stock based compensation expense | $ | 41 |
| $ | 44 |
| $ | 32 |
| Total stock based compensation capitalized | $ | 1 |
| $ | — |
| $ | — |
| Income tax benefit related to stock based compensation expense | $ | 11 |
| $ | 11 |
| $ | 7 |
| Tax benefit realized from stock options exercised and similar awards | $ | 18 |
| $ | 23 |
| $ | 28 |
|
The table below summarizes unrecognized compensation expense for the year ended December 31, 2019 associated with the following: | | | | | | | Amount
(in millions) | Weighted-Average Period (in Years) | Nonvested stock options | $ | — |
| 0 | Nonvested RSUs | 51 |
| 2.27 | Nonvested RSAs | 2 |
| 0.49 |
|