SHARE-BASED COMPENSATION |
SHARE-BASED COMPENSATIONUnder the Entercom Equity Compensation Plan (the “Plan”), the Company is authorized to issue share-based compensation awards to key employees, directors and consultants. Restricted Stock Units (“RSUs”) Activity The following is a summary of the changes in RSUs under the Plan during the current year-to-date period ended June 30, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Period Ended | | Number of Restricted Stock Units | | Weighted Average Purchase Price | | Weighted Average Remaining Contractual Term (Years) | | Aggregate Intrinsic Value as of June 30, 2020 | | (amounts in thousands) | | | | | | | | | RSUs outstanding as of: | December 31, 2019 | | 3,861 | | | | | | | | RSUs awarded | June 30, 2020 | | 580 | | | | | | | | RSUs released | June 30, 2020 | | (1,599) | | | | | | | | RSUs forfeited | June 30, 2020 | | (170) | | | | | | | | RSUs outstanding as of: | June 30, 2020 | | 2,672 | | | $ | — | | | 1.4 | | $ | 3,661 | | RSUs vested and expected to vest as of: | June 30, 2020 | | 2,672 | | | $ | — | | | 1.4 | | $ | 3,661 | | RSUs exercisable (vested and deferred) as of: | June 30, 2020 | | 41 | | | $ | — | | | 0 | | $ | 57 | | Weighted average remaining recognition period in years | | | 2.3 | | | | | | | Unamortized compensation expense | | | $ | 13,999 | | | | | | | |
RSUs with Service and Market Conditions The Company issued RSUs with service and market conditions that are included in the table above. These shares vest if: (i) the Company’s stock achieves certain shareholder performance targets over a defined measurement period; and (ii) the employee fulfills a minimum service period. The compensation expense is recognized even if the market conditions are not satisfied and are only reversed in the event the service period is not met, as all of the conditions need to be satisfied. These RSUs are amortized over the longest of the explicit, implicit or derived service periods, which range from approximately one to three years.
Option Activity The following table provides summary information related to the exercise of stock options: | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | Option Exercise Data | | 2020 | | 2019 | | | (amounts in thousands) | | | Intrinsic value of options exercised | | $ | — | | | $ | 1,272 | | Tax benefit from options exercised (1) | | $ | — | | | $ | 73 | | Cash received from exercise price of options exercised | | $ | — | | | $ | 244 | |
| | | | | | (1) | Amounts exclude any impact from any compensation expense subject to Section 162(m) of the Code, which is nondeductible for income tax purposes. |
The following table presents the option activity under the Plan during the current year-to-date period ended June 30, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Period Ended | | Number of Options | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term (Years) | | Intrinsic Value as of June 30 2020 | | (amounts in thousands) | | | | | | | | | Options outstanding as of: | December 31, 2019 | | 543 | | | $ | 12.06 | | | | | | Options granted | June 30, 2020 | | 66 | | | 5.40 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Options outstanding as of: | June 30, 2020 | | 609 | | | $ | 11.33 | | | 4.3 | | $ | — | | Options vested and expected to vest as of: | June 30, 2020 | | 609 | | | $ | 11.33 | | | 4.3 | | $ | — | | Options vested and exercisable as of: | June 30, 2020 | | 543 | | | $ | 12.06 | | | 3.7 | | $ | — | | Weighted average remaining recognition period in years | | | 1.0 | | | | | | | Unamortized compensation expense | | | $ | 50 | | | | | | | |
The following table summarizes significant ranges of outstanding and exercisable options as of the current period: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Options Outstanding | | | | | | Options Exercisable | | | Range of Exercise Prices | | | | Number of Options Outstanding June 30, 2020 | | Weighted Average Remaining Contractual Life | | Weighted Average Exercise Price | | Number of Options Exercisable June 30, 2020 | | Weighted Average Exercise Price | From | | To | | | | | | | | | | | $ | 3.54 | | | 7.01 | | | 66,775 | | | 9.0 | | 5.40 | | | — | | | $ | — | | $ | 9.66 | | | 13.98 | | | 542,582 | | | 3.7 | | 12.06 | | | 542,582 | | | $ | 12.06 | | $ | 3.54 | | | 13.98 | | | 609,357 | | | 4.3 | | 11.33 | | | 542,582 | | | $ | 12.06 | |
Recognized Non-Cash Stock-Based Compensation Expense The following non-cash stock-based compensation expense, which is related primarily to RSUs, is included in each of the respective line items in the Company’s statement of operations: | | | | | | | | | | | | | Six Months Ended June 30, | | | | 2020 | | 2019 | | (amounts in thousands) | | | Station operating expenses | $ | 1,029 | | | $ | 2,668 | | Corporate general and administrative expenses | 3,195 | | | 4,298 | | Stock-based compensation expense included in operating expenses | 4,224 | | | 6,966 | | Income tax benefit (1) | 950 | | | 1,493 | | After-tax stock-based compensation expense | $ | 3,274 | | | $ | 5,473 | | | | | |
| | | | | | | | | | | | | Three Months Ended June 30, | | | | 2020 | | 2019 | | (amounts in thousands) | | | Station operating expenses | $ | 527 | | | $ | 1,243 | | Corporate general and administrative expenses | 1,917 | | | 2,150 | | Stock-based compensation expense included in operating expenses | 2,444 | | | 3,393 | | Income tax benefit (1) | 581 | | | 745 | | After-tax stock-based compensation expense | $ | 1,863 | | | $ | 2,648 | |
(1) Amounts exclude impact from any compensation expense subject to Section 162(m) of the Code, which is nondeductible for income tax purposes.
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