Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Share-based Payment Arrangement [Text Block] STOCK-BASED COMPENSATION
In December 2005, we adopted our 2005 Stock Incentive Plan, which has been amended and/or restated on several occasions. In connection with our merger with Ticketmaster Entertainment LLC, we adopted the Amended and Restated Ticketmaster 2008 Stock & Annual Incentive Plan. The plans authorize us to grant stock option awards, director shares, stock appreciation rights, restricted stock and deferred stock awards, other equity-based awards and performance awards. We have granted restricted stock awards, options to purchase our common stock and deferred stock awards to employees, directors, consultants, and our affiliates under the stock incentive plans at no less than the fair market value of the underlying stock on the date of grant. The stock incentive plans contain anti-dilutive provisions that require the adjustment of the number of shares of our common stock represented by, and the exercise price of, each option for any stock splits or stock dividends. The ten-year term of the Ticketmaster plan expired in August 2018; accordingly, no new awards may be granted under that plan but outstanding awards shall continue in full force and effect in accordance with their terms.
The following is a summary of stock-based compensation expense we recorded during the respective periods:
  
Year Ended December 31,
  2019 2018 2017
  (in thousands)
Selling, general and administrative expenses $ 21,947    $ 18,621    $ 24,364   
Corporate expenses 26,838    26,961    18,391   
Total $ 48,785    $ 45,582    $ 42,755   

As of December 31, 2019, there was $88.9 million of total unrecognized compensation cost related to stock-based compensation arrangements for stock options, restricted stock and deferred stock awards. This cost is expected to be recognized over a weighted-average period of 2.6 years.
Stock Options
Stock options are granted for a term not exceeding ten years and the non-vested options are generally forfeited in the event the employee, director or consultant terminates his or her employment or relationship with us or one of our affiliates. Any options that have vested at the time of termination are forfeited to the extent they are not exercised within the applicable post-employment exercise period provided in their option agreements. These options vest over two to five years.
The following assumptions were used to calculate the fair value of our options on the date of grant:
 
Year Ended December 31,
  2019 2018 2017
Risk-free interest rate
1.89% - 2.53%
2.68% - 2.70%
1.87% - 2.27%
Dividend yield 0.0  % 0.0  % 0.0  %
Volatility factors
27.63% - 28.12%
27.66% - 28.00%
25.88% - 27.58%
Weighted average expected life (in years) 6.08 5.74 5.78
The following table presents a summary of our stock options outstanding at the dates given, and stock option activity for the period between such dates (“Price” reflects the weighted average exercise price per share):  
Year Ended December 31,
  2019 2018 2017
      Options     Price     Options     Price     Options     Price
  (in thousands, except per share data)
Outstanding January 1 11,784    $ 16.55    14,239    $ 14.52    16,283    $ 13.55   
Granted 487    57.00    255    44.05    1,164    33.48   
Exercised (910)   15.50    (2,694)   8.38    (3,138)   16.27   
Forfeited or expired
 (14)   10.82    (16)   28.57    (70)   24.05   
Outstanding December 31 11,347    $ 18.36    11,784    $ 16.55    14,239    $ 14.52   
Exercisable December 31 10,493    $ 15.77    10,693    $ 14.61    11,906    $ 12.00   
Weighted average fair value per option granted $ 18.50    $ 14.05      $ 10.18   
The total intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was $39.6 million, $28.1 million and $57.5 million, respectively. Cash received from stock option exercises for the years ended December 31, 2019, 2018 and 2017 was $14.1 million, $22.6 million and $51.1 million, respectively.
There were 7.1 million shares available for future grants under the stock incentive plans at December 31, 2019. Upon share option exercise or vesting of restricted or deferred stock, we issue new shares or treasury shares to fulfill these grants. Vesting dates on the stock options range from February 2020 to June 2023, and expiration dates range from January 2020 to June 2029 at exercise prices and average contractual lives as follows:
Range of
Exercise
Prices		 Outstanding
as of
12/31/19		 Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price 
Exercisable
as of
12/31/19		 Weighted
Average
Remaining
Contractual
Life		 Weighted
Average
Exercise
Price
(in thousands) 
(in years) 
(in thousands) 
(in years) 
$5.00 - $9.99
 4,325    2.8 $ 8.80    4,325    2.8 $ 8.80   
$10.00 - $14.99
 1,754    1.7 $ 11.39    1,754    1.7 $ 11.39   
$15.00 - $19.99
 921    6.0 $ 19.31    921    6.0 $ 19.31   
$20.00 - $24.99
 1,596    4.1 $ 21.14    1,595    4.1 $ 21.13   
$25.00 - $29.99
 1,663    6.0 $ 26.99    1,607    6.0 $ 26.92   
$30.00 - $44.99
 601    8.1 $ 43.76    291    8.0 $ 43.75   
$45.00 - $60.99
 487    9.2 $ 56.77    —    0.0 $ —   

The total intrinsic value of options outstanding and options exercisable as of December 31, 2019 was $811.0 million and $749.9 million, respectively.
Restricted Stock
We have granted restricted stock awards to our employees, directors and consultants under our stock incentive plans. These common shares carry a legend which restricts their transferability for a term of one to five years and are forfeited in the event the recipient’s employment or relationship with us is terminated prior to the lapse of the restriction. In addition, certain restricted stock awards require us or the recipient to achieve minimum performance targets in order for these awards to vest.
In 2019, we granted 0.2 million shares of restricted stock and 0.2 million shares of performance-based awards, respectively, under our stock incentive plans. These awards will all vest over one or four years with the exception of the performance-based awards which will vest within two years if the performance criteria are met.
In 2018, we granted 0.3 million shares of restricted stock and 0.2 million shares of performance-based awards, respectively, under our stock incentive plans. These awards will all vest over one or four years with the exception of the performance-based awards which will vest within one to two years if the performance criteria are met. As of December 31, 2019, the performance-based criteria for these awards have been met unless otherwise forfeited.
In 2017, we granted 0.9 million shares of restricted stock and 0.2 million shares of performance-based awards, respectively, under our stock incentive plans. These awards will vest over one or four years with the exception of the performance-based awards which will generally vest within one to two years if the performance criteria are met. As of December 31, 2019, the performance-based criteria for these awards have been met unless otherwise forfeited.
The following table presents a summary of our unvested restricted stock awards outstanding at December 31, 2019, 2018 and 2017 (“Price” reflects the weighted average share price at the date of grant):
 
Restricted Stock
  Awards Price
  (in thousands, except per share data)
Unvested at December 31, 2016 1,080    $ 21.67   
Granted 1,132    35.97   
Forfeited (82)   22.96   
Vested (523)   21.89   
Unvested at December 31, 2017 1,607    $ 31.79   
Granted 535    44.54   
Forfeited (37)   30.38   
Vested (706)   28.35   
Unvested at December 31, 2018 1,399    $ 38.13   
Granted 415    57.58   
Forfeited (26)   38.45   
Vested (618)   36.54   
Unvested at December 31, 2019 1,170    $ 45.80   

The total grant date fair market value of the shares issued upon the vesting of restricted stock awards during the years ended December 31, 2019, 2018 and 2017 was $22.6 million, $20.0 million and $11.5 million, respectively. As of December 31, 2019, there were 0.2 million restricted stock awards outstanding which require us or the recipient to achieve minimum performance targets in order for the awards to vest.
Deferred Stock
We have granted deferred stock awards to our employees where the employees are entitled to receive shares of common stock in the future. Deferred stock can only be settled in stock as determined at the time of the grant. All of the deferred stock awards require us to achieve minimum market conditions in order for these awards to issue and vest.
In 2017, we granted 2.5 million shares of deferred stock awards with market conditions under our incentive plans. These awards will all vest over one to five years if specified stock prices are achieved over a specific number of days during the five years.
In 2019 and 2018, we achieved minimum market conditions resulting in the issuance of 1.5 million shares and 0.2 million shares of restricted stock, respectively, subject to vesting over one to four years. As of December 31, 2019, there were 0.8 million deferred stock awards outstanding which require us to achieve minimum market conditions in order for the awards to issue subject to further vesting conditions.
The following table presents a summary of the Company’s unvested deferred stock awards outstanding at December 31, 2019, 2018 and 2017 (“Price” reflects the weighted average grant date fair value):
Deferred Stock
Awards Price
(in thousands, except per share data)
Unvested at December 31, 2016 —    0.00
Awarded 2,500    26.69
Forfeited —    0.00
Vested —    0.00
Unvested at December 31, 2017 2,500    26.69
Awarded —    0.00
Forfeited —    0.00
Vested —    0.00
Unvested at December 31, 2018 2,500    26.69
Awarded —    0.00
Forfeited —    0.00
Vested (14)   36.08
Unvested at December 31, 2019 2,486    26.63