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Stockholders' Equity and Share-Based Compensation
9 Months Ended
Sep. 30, 2015
Equity [Abstract]  
Stockholders' Equity and Share-Based Compensation

Note 9. Stockholders’ Equity and Share-Based Compensation

Share-Based Compensation

Share-based compensation expense is recognized on a straight-line basis, net of an estimated forfeiture rate, for those shares expected to vest over the requisite service period of the award, which is generally the vesting term of three or four years. Forfeitures are estimated at the time of grant and adjusted, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The forfeiture rate is based on historical experience.

The Company recognized share-based compensation costs of $4.3 million and $3.8 million in the three months ended September 30, 2015 and 2014 and $13.3 million and $11.6 million in the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015, $32.2 million of total unrecognized share-based compensation cost is expected to be recognized over a weighted-average period of approximately 3 years.

In the nine months ended September 30, 2015, the Company granted 310,000 restricted stock units (“RSUs”) and 32,000 performance based stock awards (“PSAs”) with a weighted-average grant date fair value of $74.20 and $72.39, respectively. Additionally, 268,000 RSUs vested in the nine months ended September 30, 2015with a weighted-average grant date fair value of $53.49.

Dividends

The Company declared and paid a quarterly cash dividend of $0.375 in each of the first three quarters of 2015. In October 2015, the Board of Directors declared a fourth quarter 2015 cash dividend of $0.375 per share. The dividend is payable on December 31, 2015 to stockholders of record at the close of business on December 15, 2015. The Company funds its dividend payments with cash on hand and cash generated from operations.

Share Repurchases

In February 2015, the Company’s Board of Directors approved a $100 million stock repurchase program, which is authorized through December 31, 2016. Repurchases may be made through open market purchases or privately negotiated transactions. The timing of repurchases and the exact number of shares of common stock to be repurchased will be determined by the Company’s management, in its discretion, and will depend upon market conditions and other factors. The Company repurchased 433,000 and 592,000 shares for $31.8 million and $44.7 million in the three and nine months ended September 30, 2015, respectively.