Stockholders' Equity

12 Months Ended

Dec. 31, 2021

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 have all vested in accordance with the terms of each grant. 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, 2021, 1,188,070 restricted shares had been issued under the Company's restricted LTIP plans, of which 377,729 shares of issued restricted stock were not yet vested and for which $2.3 million in unrecognized compensation expense is expected to be recognized over a weighted average period of 1.1 years. The following table presents restricted stock activity for the years 2021, 2020 and 2019:


	2021			2020			2019
	# 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	405,299	$	34.96	221,622	$	37.08	184,190	$	40.33
Granted	207,135	39.10		339,454	34.27		155,982	35.62
Forfeited	(4,345)	33.37		(36,749)	33.98		(8,869)	41.34
Vested	(230,360)	35.71		(119,028)	37.15		(109,681)	40.12
Nonvested restricted shares outstanding at December 31	377,729	$	36.78	405,299	$	34.96	221,622	$	37.08

Restricted Stock Plan Shares

During 2021, the Company recognized $3.5 million for 179,873 shares earned under the 2021-2022 award opportunity, $2.1 million of compensation expense earned under the 2020-2021 award opportunity, and $1.3 million of compensation expense earned under the 2019-2020 award opportunity. During 2020, the Company recognized $3.9 million for 266,221 shares earned under the 2020-2021 award opportunity and $4.2 million of compensation expense earned under the 2019-2020 award opportunity. 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.

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 non-forfeitable 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, 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,
	2021		2020		2019


Numerator (basic and diluted):
Net income	$	88.9	$	83.8	$	85.8
Less: Dividends paid to participating securities	(0.6)		(0.7)		(0.4)
Less: Undistributed earnings available to participating securities	(0.5)		(0.4)		(0.2)
Undistributed and distributed earnings available to common stockholders	$	87.8	$	82.7	$	85.2

Denominator:
Average number of common shares outstanding	31,030.4		30,832.7		30,652.2
Effect of dilutive stock-based compensation	369.9		271.5		186.1
Average number of common and potential common shares outstanding	31,400.3		31,104.2		30,838.3