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(2)������Stock-Based Compensation

The Company has granted to certain of its directors, employees and employees of its subsidiaries, restricted stock (“RSAs”), restricted stock units (“RSUs”) and options to purchase shares of the Company’s 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 RSAs) 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 selling, general and administrative expenses in the accompanying condensed consolidated statements of operations are $10 million and $15 million of stock-based compensation during the three months ended September��30, 2023 and 2022, respectively, and $40 million and $46 million of stock-based compensation during the nine months ended September��30, 2023 and 2022, respectively.

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���߲ݴ�ý—RSUs

The following table presents the number and weighted average GDFV of RSUs granted by the Company during the nine months ended September��30, 2023:

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Also during the nine months ended September 30, 2023, ���߲ݴ�ý granted 20.4 million performance-based, cash-settled RSUs of ���߲ݴ�ý Series A common stock (“QRTEA”) to subsidiary employees. ��These RSUs vest equally over three years, subject to the satisfaction of certain performance objectives. The liability and compensation expense related to such awards is adjusted at the end of each reporting period based on the closing market price of QRTEA on the last trading day of the quarter combined with the probability of satisfying the performance objectives.

For awards that are performance-based, performance objectives, which are subjective, are considered in determining the timing and amount of compensation expense recognized. When the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The probability of satisfying the performance objectives is assessed at the end of each reporting period.

Pursuant to the terms of the Stock Exchange Agreement, dated as of June 3, 2021, by and between Mr. Maffei and the Company, on March 25, 2022, Mr. Maffei transferred to the Company an aggregate of 229,022 shares of QRTEA received by Mr. Maffei upon vesting of the performance-based restricted stock unit award granted to Mr. Maffei on March 10, 2021 and in exchange, the Company issued to Mr. Maffei an equivalent number of shares of ���߲ݴ�ý Series B common stock (“QRTEB”). Each share of QRTEB is convertible, at the option of the holder, into one share of QRTEA.

���߲ݴ�ý—Outstanding Awards

The following tables present the number and weighted average exercise price ("WAEP") of the options to purchase ���߲ݴ�ý 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 options.

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The following table presents the number and weighted average GDFV of RSUs granted to certain officers, employees and directors of the Company.

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As of September��30, 2023, ���߲ݴ�ý also had 1.1 million QRTEB RSAs and 26 thousand ���߲ݴ�ý 8.0% Series A Cumulative Redeemable Preferred Stock RSAs and RSUs outstanding. The QRTEB unvested RSAs had a GDFV of $13.65 per share, and 25 thousand of the ���߲ݴ�ý 8.0% Series A Cumulative Redeemable Preferred Stock unvested RSUs had an incremental cost of $50.93 per share.

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As of September��30, 2023, the total unrecognized compensation cost related to unvested Awards was approximately $43 million. Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 1.9 years.

As of September��30, 2023, ���߲ݴ�ý reserved for issuance upon exercise of outstanding stock options approximately 24.3 million shares of QRTEA and 0.7 million shares of QRTEB.