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Stock-Based Compensation and Other Incentive Plans
12 Months Ended
Dec. 31, 2015
Share-based Compensation [Abstract]  
Stock-Based Compensation And Other Incentive Plans
Stock-Based Compensation and Other Incentive Plans

Under the Company's Stock Incentive Plan (the "Incentive Plan"), 3.1 million shares of the Company's common stock were reserved for awards to officers and other selected key management employees of the Company. The Incentive Plan provides the Board of Directors with the flexibility to grant stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock or units, merit awards, phantom stock awards and rights to acquire stock through purchase under a stock purchase program ("Awards"). Awards the Board of Directors elects to pay out in cash do not impact the shares authorized in the Incentive Plan. Shares available for award under the plan were 1.0 million at December 31, 2015.
Stock Options
Stock options are granted at a strike price equal to the closing market price of the Company's common stock on the date of grant and are generally subject to vesting provisions of at least one year from the date of grant. Information regarding stock option activity under the Incentive Plan follows for the year ended December 31, 2015:
 
 
 
Weighted Average
 
Aggregate
 
Average
 
Common
 
Exercise
 
Intrinsic
 
Remaining
 
Shares
 
Price
 
Value
 
Life
 
(In thousands)
 
(years)
Options outstanding at January 1
682

 
$
198.41

 
 
 
 
Canceled
(17
)
 
$
151.72

 
 
 
 
Expired
(10
)
 
$
300.62

 
 
 
 
Options outstanding at December 31
655

 
$
198.15

 
$

 
4.6
Options exercisable at December 31
488

 
$
213.00

 

 
4.4
Unvested options at December 31
167

 
 
 
 
 
 


The remaining unvested options have a weighted average grant date fair value of $35.47 per share.
The total grant-date fair value of options vested during the years ended December 31, 2015, 2014 and 2013 was $3.8 million, $8.7 million and $8.9 million, respectively. The options provide for the continuation of vesting for retirement-eligible recipients that meet certain criteria. The expense for these options is recognized through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn part or all of the award. Compensation expense related to stock options for the years ended December 31, 2015, 2014 and 2013 was $1.4 million, $3.2 million and $6.7 million, respectively. Unrecognized compensation cost related to the unvested stock options of $0.2 million at December 31, 2015 will be recognized in 2016.The majority of the cost relating to the stock-based compensation plans is included in "Selling, general and administrative expenses" in the accompanying consolidated statements of operations.
Weighted average assumptions used in the Black-Scholes option pricing model for granted options follow:
 
Year Ended December 31,
 
 
 
2013
 
Weighted average grant-date fair value per share of options granted
 
$
23.70

 
Assumptions (weighted average):
 
 
 
Risk-free interest rate
 
0.65%
 
Expected dividend yield
 
2.30%
 
Expected volatility
 
66.7%
 
Expected life (in years)
 
4.5
 

Expected volatilities are based on historical stock price movement and implied volatility from traded options on the Company's stock. The expected life of options is determined based on historical exercise activity.

Restricted Stock and Restricted Stock Unit Awards
The Company may issue restricted stock and restricted stock units, which require no payment from the employee. Restricted stock cliff-vests at various dates and restricted stock units either vest ratably over or vest at the end of three years. Compensation expense is based on the fair value on the grant date and is recorded ratably over the vesting period. The employee receives cash compensation equal to the amount of dividends that would have been paid on the underlying shares.
Information regarding restricted stock and restricted stock unit activity and weighted average grant-date fair value follows for the year ended December 31, 2015:
 
Restricted Stock
 
Restricted Stock Units
 
 
 
Weighted Average
 
 
 
Weighted Average
 
Common
 
Grant-Date
 
Common
 
Grant-Date
 
Shares
 
Fair Value
 
Shares
 
Fair Value
 
(In thousands)
 
 
 
(In thousands)
 
 
Outstanding at January 1
2

 
$
134.42

 
307

 
$
60.53

Granted

 

 
169

 
12.84

Vested
(2
)
 
134.42

 
(66
)
 
104.90

Canceled

 

 
(21
)
 
35.81

Outstanding at December 31

 

 
389

 
33.69



The Company's recognized expense related to restricted stock and restricted stock units was $5.9 million, $5.6 million, and $5.0 million for the years ended December 31, 2015, 2014 and 2013, respectively

Long-Term Incentive Compensation
The Company has a long-term incentive program that allows for the award of performance units. The total number of units earned by a participant is based on financial and operational performance measures, and may be paid out in cash or in shares of the Company's common stock. The Company recognizes compensation expense over the three year term of the grant. The liabilities are remeasured quarterly. The Company recognized $7.9 million, $10.1 million and $9.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. The expense is included primarily in "Selling, general and administrative expenses" in the accompanying consolidated statements of operations. Amounts accrued and unpaid for all grants under the plan totaled $17.8 million and $21.1 million as of December 31, 2015 and 2014, respectively.
Deferred Compensation Plan
The Company maintains a deferred compensation plan that allows eligible employees to defer receipt of compensation until the dates elected by the participant. Participants in the plan may defer up to 85% of their base salaries and up to 100% of their annual incentive awards. The plan also allows participants to defer receipt of up to 100% of the shares under any restricted stock unit or performance-contingent stock awards. The amounts deferred are invested in accounts that mirror the gains and losses of a number of different investment funds, including a hypothetical investment in shares of the Company's common stock. Participants are always vested in their deferrals to the plan and any related earnings. The Company has established a grantor trust to fund the obligations under the plan. The trust has purchased corporate-owned life insurance to offset these obligations. The net cash surrender values of the policies of $14.3 million and $37.6 million at December 31, 2015 and 2014, respectively, are included in "Other noncurrent assets" in the accompanying consolidated balance sheets. The participants have an unsecured contractual commitment by the Company to pay the amounts due under the plan. Any assets placed in trust by the Company to fund future obligations of the plan are subject to the claims of creditors in the event of insolvency or bankruptcy, and participants are general creditors of the company as to their deferred compensation in the plans.
Under the plan, the Company credits each participant's account with the number of units equal to the number of shares or units that the participant could purchase or receive with the amount of compensation deferred, based upon the fair market value of the underlying investment on that date. The amount the employee will receive from the plan will be based on the number of units credited to each participant's account, valued on the basis of the fair market value of an equivalent number of shares or units of the underlying investment on that date. The liability under the plan was $19.5 million and $35.1 million at December 31, 2015 and 2014.
The Company's net income related to the deferred compensation plan for the years ended December 31, 2015, 2014 and 2013 was $0.9 million, $1.6 million and $2.6 million, respectively, most of which is included in "Selling, general and administrative expenses" in the accompanying consolidated statements of operations.