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Stockholders' Equity
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity

Restricted Stock Plan

In April 2015, the Company adopted a new 2015 Long-term Incentive Plan, or LTIP, which replaced its existing Restricted Stock Plan ("RSP"). The LTIP is intended to promote the Company's long-term financial success by attracting and retaining outstanding executive personnel and to motivate such personnel by means of equity grants. The Compensation Committee of the Company's Board of Directors selects participants and establishes the terms of any grant of restricted stock. The Company's LTIP provides that issuance of restricted stock immediately transfers ownership rights in shares of its Common Stock to the recipient of the grant, including the right to vote the shares and to receive dividends thereon. Other types of stock awards are available under the LTIP, but not currently used. The recipient's continued ownership of and right to freely transfer the restricted stock is subject to such conditions on transferability and to such risks of forfeiture as are established by the Compensation Committee at the time of the grant, which may include continued employment with the Company for a defined period, achievement of specified management performance objectives or other conditions established by the Compensation Committee. The number of shares which may be issued under the LTIP is limited to 5,000,000. Restricted shares outstanding under the RSP will continue to vest in accordance with the terms of each grant; however, no further grants of shares will be issued under the RSP. No single participant may be awarded, in the aggregate, more than 750,000 shares during any fiscal year.

As of December 31, 2019, 1,923,356 restricted shares had been issued under the Company's restricted stock plans of which 221,622 shares of issued restricted stock were not yet vested and for which $2.5 million in unrecognized compensation expense is expected to be recognized over a weighted average period of 2.1 years. The following table presents restricted stock activity for the years 2019, 2018 and 2017:
 
2019
 
2018
 
2017
 
# of Shares
 
Weighted Average Fair Value at Date of Grant
 
# of Shares
 
Weighted Average Fair Value at Date of Grant
 
# of Shares
 
Weighted Average Fair Value at Date of Grant
Nonvested restricted shares outstanding at January 1
184,190

 
$
40.33

 
283,338

 
$
37.26

 
224,289

 
$
41.30

Granted
155,982

 
35.62

 
142,475

 
39.58

 
216,017

 
36.03

Forfeited
(8,869
)
 
41.34

 
(12,858
)
 
40.06

 
(29,150
)
 
42.50

Vested
(109,681
)
 
40.12

 
(228,765
)
 
35.86

 
(127,818
)
 
41.06

Nonvested restricted shares outstanding at December 31
221,622

 
$
37.08

 
184,190

 
$
40.33

 
283,338

 
$
37.26



Restricted Stock Plan Performance Based Shares

During 2019, the Company recognized $5.6 million for 331,150 shares earned under the 2019-2020 award opportunity and $2.2 million of compensation expense earned under the 2018-2019 award opportunity. During 2018, the Company recognized $2.0 million for 91,396 shares earned under the 2018-2019 award opportunity and $2.2 million of compensation expense earned under the 2017-2018 award opportunity. During 2017, the Company recognized $1.7 million of compensation expense for 75,741 shares earned under the 2017-2018 award opportunity and $2.2 million of compensation expense earned under the 2016-2017 award opportunity.

Basic and Diluted Shares Reconciliation

The Company uses the two-class method to calculate earnings per share. The Company has granted restricted stock that contains nonforfeitable rights to dividends on unvested shares. Since these unvested shares are considered participating securities under the two-class method, the Company allocates earnings per share to common stock and participating securities according to dividends declared and participation rights in undistributed earnings.

Diluted net income per common share is computed based on net income divided by the weighted average number of common and potential common shares outstanding. Potential common shares during the respective periods are those related to dilutive stock-based compensation, including long-term share-based incentive compensation, stock options outstanding, and directors' accumulated deferred stock compensation which may be received by the directors in the form of stock or cash. A reconciliation of the average number of common and potential common shares outstanding used in the calculations of basic and diluted net income per share follows ($ in millions, shares in thousands):
 
For the Years Ended December 31,
 
2019
 
2018
 
2017
Numerator (basic and diluted):
 
 
 
 
 
Net income
$
85.8

 
$
94.5

 
$
34.5

Less: Dividends paid to participating securities
(0.4
)
 
(0.3
)
 
(0.4
)
Less: Undistributed earnings available to participating securities
(0.2
)
 
(0.3
)
 

Undistributed and distributed earnings available to common stockholders
$
85.2

 
$
93.9

 
$
34.1

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Average number of common shares outstanding
30,652.2

 
30,551.3

 
30,407.1

Effect of dilutive stock-based compensation
186.1

 
141.6

 
142.2

Average number of common and potential common shares outstanding
30,838.3

 
30,692.9

 
30,549.3