Share-Based Compensation | Stock-Based Compensation Our 2004 Equity Incentive Plan (the "2004 Plan") authorized the granting of options to purchase shares of our Class B common stock, RSUs and other stock-based awards to our employees, consultants, officers and directors. Our 2013 Equity Incentive Plan, as amended, (the "2013 Plan" and, together with the 2004 Plan, the "Plans"), which was the successor to our 2004 Plan, authorizes the granting of options to purchase shares of our Class A common stock, RSUs and other stock-based awards to our employees, consultants, officers and directors. Options granted under the Plans may be incentive or nonstatutory stock options. Incentive stock options may only be granted to employees. The term of each option is stated in the award agreement, but shall be no more than ten years from the date of grant. The board of directors determines the period over which options and RSUs become vested. Currently, the vesting period for our options and RSUs is typically four years. Our 2013 Employee Stock Purchase Plan ("2013 ESPP") allows eligible employees to purchase shares of our Class A common stock, at a discount, through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. The 2013 ESPP currently includes purchase periods approximately six months in duration starting on the first trading date on or after June 1 st and December 1 st of each year. Participants are able to purchase shares of our common stock at 85% of the lower of its fair market value on (i) the first day of the purchase period or on (ii) the purchase date, which is the last day of the purchase period. A summary of the option activity during the nine months ended September 30, 2016 is presented below: Options Outstanding Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Balances at December 31, 2015 5,953,771 $ 8.92 Options granted 75,000 54.87 Options exercised (1,186,096 ) 8.19 Options canceled (287 ) 57.87 Options forfeited (90,862 ) 23.83 Balances at September 30, 2016 4,751,526 $ 9.53 5.41 $ 217,321 Vested and expected to vest at September 30, 2016 4,751,489 $ 9.53 5.41 $ 217,320 Exercisable at September 30, 2016 4,391,379 $ 8.38 5.27 $ 205,899 RSUs entitle the holder to receive shares of Class A common stock as the award vests, which is generally based on length of service. The fair value of an RSU is determined by using the closing price of our Class A common stock as reported on the New York Stock Exchange on the date of grant. Our non-vested RSUs do not have nonforfeitable rights to dividends or dividend equivalents. The intrinsic value is the difference between the current fair value of the stock and the exercise price of the stock option. For awards subject to technology milestones, we will recognize compensation cost over the required service period if it is probable that the technology milestone will be met. If our assessment of the probability of the technology milestone being met changes, we will recognize the impact of the change in estimate in the period of the change. A summary of the RSU activity during the nine months ended September 30, 2016 is presented below: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Non-Vested outstanding at December 31, 2015 5,406,077 $ 93.61 RSUs granted 4,207,257 44.54 RSUs vested (1,421,083 ) 93.42 RSUs forfeited (496,327 ) 72.76 Non-Vested outstanding at September 30, 2016 7,695,924 $ 68.00 Stock-based compensation expense is amortized using the straight-line method over the requisite service period. As of September 30, 2016 , total unrecognized compensation expense, adjusted for estimated forfeitures, related to stock options and non-vested RSUs was approximately $469.6 million which is expected to be recognized over a period of 2.8 years . The summary of shares available for issuance of equity based awards (including stock options and RSUs) during the nine months ended September 30, 2016 is as follows: Shares Available for Grant 2013 Plan 2013 ESPP Balances at December 31, 2015 6,361,749 3,320,668 Authorized 3,660,223 732,044 Granted (4,282,257 ) (262,668 ) Canceled 287 — Forfeited 587,189 — Balances at September 30, 2016 6,327,191 3,790,044 |