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(4)ÌýÌýÌýStock-Based Compensation

The Company has granted to certain of its directors, employees and employees of its subsidiaries, restricted stock, restricted stock units and options to purchase shares of Liberty 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 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 $24 million and $29 million of stock-based compensation during the three months endedÌýJuneÌý30,Ìý2016 and 2015, respectively, and $55 million and $44 million during the six months ended June 30, 2016 and 2015, respectively.

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During the six months ended JuneÌý30,Ìý2016, Liberty granted 2.8 million options to QVC employees to purchase shares of SeriesÌýA QVC Group common stock.ÌýÌýSuch options had a weighted average grant-date fair value of $7.89 per share and vest semi-annually over 4Ìýyears.

During the six months ended JuneÌý30,Ìý2016, Liberty granted 347 thousand options to zulily employees to purchase shares of Series A QVC Group common stock.ÌýÌýSuch options had a weighted average grant-date fair value of $7.89 per share and vest between three to five years.

During the six months ended June 30, 2016, Liberty granted to Liberty employees 11 thousand and 386 thousand options to purchase shares of Series A QVC Group common stock.ÌýÌýSuch options had a weighted average grant-date fair value of $7.79 and $8.14 per share, respectively, and vest semi-annually over four years and 50% each on December 31, 2019 and 2020, respectively.

Also during the six months ended JuneÌý30,Ìý2016, Liberty granted to Liberty employees 3 thousand and 104 thousand options to purchase shares of SeriesÌýA Liberty Ventures common stock.ÌýÌýSuch options had a weighted average grant-date fair value of $12.11Ìýand $12.24 per share, respectively, and vest semi-annually over four years and 50% each on December 31, 2019 and 2020, respectively.

In connection with our CEO’s employment agreement, during the six months ended JuneÌý30,Ìý2016, Liberty also granted 730 thousand and 209 thousand options of Series B QVC Group common stock and Series B Liberty Ventures common stock, respectively, and 53 thousand and 16 thousand performance-based restricted stock units of Series B QVC Group common stock and Series B Liberty Ventures common stock, respectively.ÌýÌýSuch options had a grant-date fair value of $7.47 per share and $12.48 per share, respectively. The restricted stock units had a fair value of $25.11 per share and $38.79 per share, respectively, at the time they were granted. The options vest on December 31, 2016 and the restrictedÌýstock units cliff vest in oneÌýyear, subject to satisfaction of certain performance objectives.ÌýÌýPerformance objectives, which are subjective, are considered in determining the timing and amount of the compensation expense recognized. As the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The value of the grant is remeasured at each reporting period.

The Company has calculated the grant-date fair value for all of its equity classified Awards and any subsequent remeasurement of its liability classified and certain performance-based awards using the Black-Scholes-Merton Model. The Company 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's stock and the implied volatility of publicly traded Liberty options. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options.

Liberty—Outstanding Awards

The following tables present the number and weighted average exercise price ("WAEP") of the Awards to purchase QVC Group and Liberty Ventures common stock granted to certain officers, employees and directors of the Company.

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As of JuneÌý30, 2016, the total unrecognized compensation cost related to unvested Awards was approximately $153 million. Such amount will be recognized in the Company's consolidated statements of operations over a weighted average period of approximately 2.6 years.

Other

Certain of the Company's other subsidiaries have stock based compensation plans under which employees and non-employees are granted options or similar stock based awards. Awards made under these plans vest and become exercisable over various terms. During the six months ended June 30, 2016, approximately $90 million of cash payments were made to settle CommerceHub stock based awards. The awards and compensation recorded, if any, under other subsidiary compensation plans are not significant to Liberty.