|9 Months Ended|
Sep. 30, 2022
(3) Stock-Based Compensation
Liberty grants, to certain of its directors, employees and employees of its subsidiaries, restricted stock, restricted stock units (“RSUs”) and stock options to purchase shares of its common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options and restricted stock) based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date.
Included in the accompanying condensed consolidated statements of operations are the following amounts of stock-based compensation, as discussed below:
Liberty—Grants of Awards
Options granted during the nine months ended September 30, 2022 are summarized as follows:
The Company did not grantto purchase or Liberty SiriusXM, Liberty Braves or Liberty Formula One common stock during the nine months ended September 30, 2022.
Liberty calculates the GDFV for all of its equity classified Awards and the subsequent remeasurement of its liability classified Awards using the Black-Scholes Model. Liberty estimates the expected term of the Awards based on historical
exercise and forfeiture data. The volatility used in the calculation for Awards is based on the historical volatility of Liberty common stock and the implied volatility of publicly traded Liberty options. Liberty uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject Awards.
The following tables present the number and weighted average exercise price ("WAEP") of Awards to purchase Liberty common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the Awards.
Liberty Formula One
As of September 30, 2022, there were nooptions to purchase shares of Series A Liberty SiriusXM or Liberty Formula One common stock, and there were no options to purchase shares of Series B Liberty SiriusXM, or Liberty Formula One common stock.
As of September 30, 2022, Liberty Braves had 1 thousand Series A options outstanding andat a of $12.35, with a weighted average remaining contractual life of 0.2 years.
As of September 30, 2022, the total unrecognized compensation cost related to unvested Awards was approximately $34 million. Such amount will be recognized in the Company's condensed consolidated statements of operations over a weighted average period of approximately 1.9 years.
As of September 30, 2022, Liberty reserved 7.0 million, 3.2 million and 7.3 million shares of Series A and Series C common stock, as applicable, of Liberty SiriusXM, Liberty Braves and Liberty Formula One, respectively, for issuance under exercise privileges of outstanding stock Awards.
Sirius XM Holdings — Stock-based Compensation
Sirius XM Holdings granted various types of stock awards to its employees during the nine months ended September 30, 2022. As of September 30, 2022, Sirius XM Holdings has approximately 137 million options outstanding of which approximately 81 million are exercisable, each with a WAEP per share of $5.51 and $5.13, respectively. The aggregate intrinsic value of Sirius XM Holdings options outstanding and exercisable as of September 30, 2022 is $68 million and $68 million, respectively. During the nine months ended September 30, 2022, Sirius XM Holdings granted approximately 44 million nonvested RSUs with a GDFV per share of $6.62. Stock-based compensation expense related to Sirius XM Holdings was $51 million for each of the three months ended September 30, 2022 and 2021, and $143 million and $149 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, the total unrecognized compensation cost related to unvested Sirius XM Holdings stock options and RSUs was $527 million. The Sirius XM Holdings unrecognized compensation cost will be recognized in the Company's condensed consolidated statements of operations over a weighted average period of approximately 2.7 years.
The entire disclosure for share-based payment arrangement.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef