Employee Benefit Plans

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation: Our 2016 Equity and Performance Incentive Plan (the “2016 Plan”), which was approved and adopted in April 2016, allows us to grant options, stock appreciation rights, restricted stock, restricted stock units, performance awards, other stock unit awards and dividend equivalents to directors, employees, consultants and/or advisors of the Company. As of June 30, 2018, we had 7.2 million share-based payment awards outstanding, including stock options, restricted stock units and restricted stock. The 2016 Plan had 4.3 million share-based payment awards available for grant as of June 30, 2018.

The Company estimates the number of awards that are expected to vest as opposed to accounting for forfeitures as they occur. We recorded share-based compensation expense as follows:



	For the three months ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017

	(in millions)
Share-based compensation expense	$	4.8	$	4.3	$	8.8	$	6.7

Stock options: The following table summarizes information related to our stock options:



	Number of Stock Options		Weighted Average Exercise Price
Options outstanding as of January 1, 2018	5,026,722		$	6.53
Exercised	(815,639	)	$	4.31
Options outstanding as of June 30, 2018	4,211,083		$	6.96
Options exercisable as of June 30, 2018	3,301,462		$	5.90
Expected to vest as of June 30, 2018	730,190		$	10.88

The unamortized compensation costs not yet expensed related to stock options totaled $2.8 million as of June 30, 2018. The weighted average period over which the costs are expected to be recognized is 1.1 years. The aggregate amount of cash we received from the exercise of stock options was $0.8 million and $2.5 million for the six months ended June 30, 2018, and 2017, respectively. The associated shares were newly-issued common stock.

Restricted Stock Units: The following table summarizes information related to our restricted stock units:



	Number of Units		Weighted Average Grant Date Fair Value
Non-vested as of January 1, 2018	1,524,529		$	13.61
Granted	294,600		$	32.86
Vested	(478,738	)	$	13.87
Canceled or forfeited	(15,264	)	$	18.57
Non-vested as of June 30, 2018	1,325,127		$	17.74

The unamortized compensation costs not yet expensed related to non-vested restricted stock units totaled $20.6 million as of June 30, 2018. The weighted average period over which the costs are expected to be recognized is 1.4 years.

Restricted Stock: The Company grants restricted stock awards, which may be subject to either market or performance conditions. The grant date fair value of the awards subject to market conditions was determined using the Monte Carlo simulation. The grant date fair value of the awards subject to other conditions, including performance conditions, was determined as the closing price of the Company’s common stock on the grant date. To the extent that restricted stock awards are forfeited, the forfeited shares will be included in treasury stock. The following table summarizes information related to our restricted stock:



	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested as of January 1, 2018	1,042,662		$	18.77
Granted	426,940		$	32.94
Vested	(109,241	)	$	19.22
Non-vested as of June 30, 2018	1,360,361		$	23.18

The unamortized compensation costs not yet expensed related to restricted stock totaled $18.5 million as of June 30, 2018. The weighted average period over which the costs are expected to be recognized is 1.4 years.

Pinnacle Entertainment, Inc. 10-Q