Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

v3.5.0.2
Employee Benefits and Compensation Plans
 9 Months Ended
Sep. 30, 2016
Postemployment Benefits [Abstract]  
Employee Benefits and Compensation Plans
8. Employee Benefits and Compensation Plans

 

Share Option Awards

 

On March 1, 2016, we granted 1.0 million share option awards to our employees at an exercise price of $50.31 with a contractual term of ten years. The share options vest equally over three years.

 

The following is a summary of option activity under our share option plan for the nine months ended September 30, 2016 (excludes the impact of 364,584 previously awarded performance-based options as no grant date has been established):

 

    Number of Share Option
Awards 		    Weighted-Average Exercise
Price Per Share 		    Weighted-
Average
Contractual Term 		   

Aggregate

Intrinsic Value

  
    Time-
Based
Awards 		    Performance-
Based
Awards 		    Market-
Based
Awards 		    Time-
Based
Awards 		    Performance-
Based
Awards 		    Market-
Based
Awards 		    (years)     (in thousands)  
Outstanding as of December 31, 2015     7,702,071       432,752       208,333     $ 47.35     $ 19.00     $ 59.43       8.59     $ 104,864  
Granted     1,095,000       52,083       —       49.88       59.43       —                  
Exercised     (169,527 )     (51,857 )     —       27.64       19.00       —                  
Forfeited and cancelled     (583,492 )     —       —       49.46       —       —                  
Outstanding as of September 30, 2016     8,044,052       432,978       208,333     $ 47.96     $ 23.86     $ 59.43       8.07     $ 24,633  

 

Restricted Ordinary Share Awards

 

The following is a summary of restricted ordinary share activity for the nine months ended September 30, 2016:

 

    Number of
Time-Based
Awards		     Weighted-
Average Grant
Date Fair
Value Per Share		  
Non-vested as of January 1, 2016     43,653     $ 5.87  
Granted     —       —  
Vested     (26,118 )     4.81  
Forfeited or expired     (352 )     2.50  
Non-vested and expected to vest as of September 30, 2016     17,183     $ 7.55  
  

Restricted Share Unit Awards

 

On March 1, 2016, we granted 1.2 million restricted share unit awards to our employees which vest equally over three years. 

 

The following is a summary of restricted share unit activity for the nine months ended September 30, 2016 (excludes the impact of 87,500 previously awarded performance-based restricted share units as no grant date was established):

 

    Number of
Time-Based
Awards 		    Weighted-
Average Grant
Date Fair
Value Per Share 		    Number of
Performance-
Based
Awards 		    Weighted-
Average Grant
Date Fair
Value Per Share 		    Number of
Market-
Based
Awards 		    Weighted-
Average Grant
Date Fair
Value Per Share 		 
Non-vested as of January 1, 2016     150,000     $ 59.43       —     $ —       50,000     $ 59.43  
Granted     1,328,490       49.62       12,500       50.00       —       —  
Vested     (37,500 )     59.43       (12,500 )     50.00       —       —  
Forfeited or expired     (83,655 )     50.51       —       —       —       —  
Non-vested and expected to vest as of September 30, 2016     1,357,335     $ 50.38       —     $ —       50,000     $ 59.43  

 

The share-based compensation expense for the three months ended September 30, 2016 was $16.8 million of which $15.0 million was recorded in marketing, general and administrative expense and $1.8 million was recorded in payroll and related expense. The nine months ended September 30, 2016 was $48.3 million of which $42.7 million was recorded in marketing, general and administrative expense and $5.6 million was recorded in payroll and related expense.