Stock-Based Compensation

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Stock Grants

There were 14,076 and 12,736 stock grants granted during the nine months ended September 30, 2019 and 2018, respectively. The Company recognized $0.5 million of stock-based compensation expense related to stock grants for the three and nine months ended September 30, 2019 and 2018, respectively.

Restricted Stock Units

During the nine months ended September 30, 2019 and 2018, 37,235 and 52,306 restricted stock units were authorized by the Company, respectively. During the nine months ended September 30, 2019 and 2018, 76,875 and 129,706 restricted stock units vested, respectively. During the nine months ended September 30, 2019 and 2018, 7,978 and 6,456 restricted stock units were forfeited under the Company's Long-Term Incentive Plan, as Amended and Restated (the "Plan") and became available for reissuance, respectively.

The table below shows the Company's stock-based compensation expense related to the restricted stock units for the three and nine months ended September 30, 2019 and 2018, respectively, and is included in General and administrative expenses within the Condensed Consolidated Statements of Income:



	Three Months Ended				Nine Months Ended
(millions) (unaudited)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Stock-based compensation expense	$	0.3	$	0.3	$	0.8	$	0.6

As of September 30, 2019, there was $2.0 million of unrecognized stock-based compensation costs related to the restricted stock units that are expected to be recognized over a weighted average remaining period of approximately 2.0 years.

Performance Share Units

In September 2014, the Board of Directors authorized a performance-based incentive program under the Company’s Plan (“Performance-Based Incentive Program”), whereby the Company will issue performance share units to certain executives that represent shares potentially issuable in the future. The objective of the Performance-Based Incentive Program is to link compensation to business performance, encourage ownership of Company stock, retain executive talent, and reward executive performance. The Performance-Based Incentive Program provides participating executives with the opportunity to earn vested common stock if certain performance targets for pre-tax free cash flow are achieved over a three years performance period and recipients satisfy service-based vesting requirements. The stock-based compensation expense associated with unvested performance share units are recognized on a straight-line basis over the shorter of the vesting period or minimum service period and dependent upon the probable outcome of the number of shares that will ultimately be issued based on the achievement of pre-tax free cash flow over the cumulative three years period.

During the nine months ended September 30, 2019 and 2018, the Company granted 144,097 and 28,060 performance share units to certain executives, respectively. The grants during the nine months ended September 30, 2019 included an increase during the three months ended September 30, 2019 of 18,865 shares that are expected to be awarded based on the revised estimate of performance shares that are expected to vest. The grants during the nine months ended September 30, 2018 included a decrease during the three months ended September 30, 2018 of 70,661 shares based on the revised estimate of performance shares that are no longer expected to vest. No performance share units vested during the nine months ended September 30, 2019. During the nine months ended September 30, 2018, 6,874 performance share units vested related to certain participating executives being eligible for retirement. During the nine months ended September 30, 2019 and 2018, 11,819 and 10,572 performance share units were forfeited under the Plan and became available for reissuance, respectively.

The table below shows the Company's stock-based compensation expense (reduction of expense) related to the Performance-Based Incentive Program for the three and nine months ended September 30, 2019 and 2018, respectively, and is included in General and administrative expenses within the Condensed Consolidated Statements of Income:



	Three Months Ended					Nine Months Ended
(millions) (unaudited)	September 30, 2019		September 30, 2018			September 30, 2019		September 30, 2018
Stock-based compensation expense	$	1.0	$	(0.4	)	$	1.8	$	0.7

Future compensation expense for currently outstanding awards under the Performance-Based Incentive Program could reach a maximum of $15.0 million. Stock-based compensation for the Performance-Based Incentive Program is expected to be recognized over a weighted average period of 1.9 years.