Quarterly report pursuant to Section 13 or 15(d)

Stock-based Expense

v3.20.2
Stock-based Expense
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock-based Expense Stock-based Expense
On June 3, 2020, our stockholders approved the 2020 Equity Incentive Plan (“2020 Plan”). The 2020 Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares. The 2020 Plan replaces our 2010 Equity Incentive Plan (the “2010 Plan”), and no further awards will be made under the 2010 Plan after the effective date of the 2020 Plan. Additionally, any awards that expire or are forfeited under the 2010 Plan become available for issuance under the 2020 Plan.
At June 30, 2020, there were 12.8 million shares of our common stock reserved for awards under the 2020 Plan. The 2020 Plan permits the exercise of stock options and grants of restricted stock to be fulfilled through the issuance of previously authorized but unissued common stock shares, or the reissuance of shares held in treasury.
Restricted Stock Awards
During the three months ended June 30, 2020, we granted 68,646 time-based restricted stock awards with a grant date weighted average fair value of $58.28 per share. During the six months ended June 30, 2020, we granted 973,773 time-based restricted stock awards with a grant date weighted average fair value of $59.86. These awards generally vest ratably over a period of twelve quarters with the first vesting on the first day of the second calendar quarter immediately following the grant date. A portion of these grants are associated with the Modern Message acquisition and vest 5% each quarter over a period of eleven quarters with the first vesting on the first day of the second calendar quarter immediately following the grant date and with the remaining shares vesting during the twelfth quarter.
Market-based Restricted Stock Awards
There were no grants of market-based awards during the three months ended June 30, 2020. During the six months ended June 30, 2020, we made grants of restricted stock that become eligible to vest based on the achievement of certain market-based conditions. Prior to July 1, 2023, these awards become Eligible Shares if the average closing price of our common stock equals or exceeds the triggers shown below for a period of twenty consecutive trading days:
Awards Granted Stock Price Trigger
109,888 $73.60
109,888 $82.43
109,888 $94.21
109,960 $105.98

Shares that become Eligible Shares vest ratably over four calendar quarters, with the first vesting on the first day of the quarter immediately after becoming Eligible Shares. Vesting is conditional upon the recipient remaining a service provider, as defined in the plan document, to the Company through each applicable vesting date. The aggregate grant date fair value of these awards was $13.5 million.
We capitalized stock-based expense for software development costs of $0.5 million and $0.9 million during the three and six months ended June 30, 2020, respectively.