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Stock Based Compensation
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation Stock Based Compensation
The Compensation Committee of Piedmont's Board of Directors has periodically granted deferred stock awards to all of Piedmont's employees and independent directors. Employee awards typically vest ratably over a multi-year period and independent director awards vest over one year. Certain employees' long-term equity incentive program is split equally between the time-vested awards described above and a multi-year performance share program whereby the actual awards are contingent upon Piedmont's total stockholder return ("TSR") relative to a peer group of office REITs' TSR. The peer group is predetermined by the Board of Directors, advised by an outside compensation consultant. Any shares earned are awarded at the end of the multi-year performance period and vest upon award.

A rollforward of Piedmont's equity based award activity for the nine months ended September 30, 2018 is as follows:

 
Shares
 
Weighted-Average Grant Date Fair Value
Unvested and Potential Stock Awards as of December 31, 2017
868,437

 
$
21.69

Deferred Stock Awards Granted
354,236

 
$
17.84

Increase in Estimated Potential Share Award
313,827

 
$
23.80

Performance Stock Awards Vested
(161,005
)
 
$
18.47

Deferred Stock Awards Vested
(332,019
)
 
$
19.21

Deferred Stock Awards Forfeited
(8,481
)
 
$
19.77

Unvested and Potential Stock Awards as of September 30, 2018
1,034,995

 
$
22.36



The following table provides additional information regarding stock award activity during the three and nine months ended September 30, 2018 and 2017, respectively (in thousands, except per share amounts):

 
Three Months Ended
 
Nine Months Ended
 
September 30,
2018
 
September 30,
2017
 
September 30,
2018
 
September 30,
2017
Weighted-Average Grant Date Fair Value of Deferred Stock Granted During the Period
$

 
$

 
$
17.84

 
$
21.38

Total Grant Date Fair Value of Deferred Stock Vested During the Period
$
16

 
$
11

 
$
6,378

 
$
5,852

Share-based Liability Awards Paid During the Period(1)
$

 
$

 
$
2,947

 
$
2,877



(1) 
Amounts reflect the issuance of performance share awards related to the 2014-16 and 2015-17 Performance Share Plans during the nine months ended September 30, 2018 and 2017, respectively.
A detail of Piedmont’s outstanding stock awards as of September 30, 2018 is as follows:

Date of grant
 
Type of Award
 
Net Shares
Granted (1)
 
Grant
Date Fair
Value
 
Vesting Schedule
 
Unvested Shares
 
January 3, 2014
 
Deferred Stock Award
 
72,969

 
$
16.45

 
Of the shares granted, 20% vested or will vest on January 3, 2015, 2016, 2017, 2018, and 2019, respectively.
 
16,416

 
May 24, 2016
 
Deferred Stock Award
 
208,003

 
$
19.91

 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 24, 2017, 2018, and 2019, respectively.
 
60,591

 
May 24, 2016
 
Fiscal Year 2016-2018 Performance Share Program
 

 
$
23.02

 
Shares awarded, if any, will vest immediately upon determination of award in 2019.
 
99,337

(2) 
May 18, 2017
 
Deferred Stock Award
 
219,863

 
$
21.38

 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 18, 2018, 2019, and 2020, respectively.
 
123,507

 
May 18, 2017
 
Fiscal Year 2017-2019 Performance Share Program
 

 
$
30.45

 
Shares awarded, if any, will vest immediately upon determination of award in 2020.
 
143,335

(2) 
May 17, 2018
 
Deferred Stock Award-Board of Directors
 
31,388

 
$
17.84

 
Of the shares granted, 100% will vest by May 17, 2019.
 
31,388

 
May 17, 2018
 
Deferred Stock Award
 
302,706

 
$
17.84

 
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 17, 2019, 2020, and 2021, respectively.
 
239,777

 
May 17, 2018
 
Fiscal Year 2018-2020 Performance Share Program
 

 
$
23.52

 
Shares awarded, if any, will vest immediately upon determination of award in 2021.
 
320,644

(2) 
Total
 
 
 
 
 
 
 
 
 
1,034,995

 

(1) 
Amounts reflect the total grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through September 30, 2018.
(2) 
Estimated based on Piedmont's cumulative TSR for the respective performance period through September 30, 2018. Share estimates are subject to change in future periods based upon Piedmont's relative performance compared to its peer group of office REITs' total stockholder return.

During the three months ended September 30, 2018 and 2017, Piedmont recognized approximately $1.7 million and $1.3 million of compensation expense related to stock awards all of which is related to the amortization of unvested shares. During the nine months ended September 30, 2018 and 2017, Piedmont recognized approximately $6.7 million and $7.0 million of compensation expense related to stock awards, of which $5.6 million and $5.4 million is related to the amortization of unvested shares, respectively. During the nine months ended September 30, 2018, a net total of 355,055 shares were issued to employees. As of September 30, 2018, approximately $5.1 million of unrecognized compensation cost related to unvested deferred stock awards remained, which Piedmont will record in its consolidated statements of income over a weighted-average vesting period of approximately one year.