Compensation Plans

12 Months Ended

Dec. 31, 2016

The Company and its subsidiaries have profit sharing plans in which substantially all employees participate. The plans provide for minimum annual contributions of 5% of eligible compensation; contributions above the minimum are discretionary and vary with each participating subsidiary’s profitability. Employees become eligible to participate in the plan on the first day of the calendar quarter following the first full calendar quarter after the employee's date of hire provided the employee has completed 250 hours of service during the calendar quarter. The plans provide that 40% of the contributions vest immediately and that the remaining 60% vest at varying percentages based upon years of service. Profit sharing expense was $39 million, $42 million and $38 million in 2016, 2015 and 2014, respectively.

The Company has a long-term incentive compensation plan ("LTIP") that provides for incentive compensation to key executives based on the growth in the Company's book value per share over a five year period.

The following table summarizes the outstanding LTIP awards as of December 31, 2016:



	Units Outstanding	Maximum Value		Inception to date earned through December 31, 2016 on outstanding units
2013 grant	197,500	$	49,375,000	$	31,852,800
2014 grant	209,750	20,975,000		9,883,420
2015 grant	211,250	21,125,000		7,239,538
2016 grant	230,500	23,050,000		4,001,480

The following table summarizes the LTIP expense for each of the three years ended December 31, 2016:



(In thousands)	2016			2015		2014
2011 grant	$	(82	)	$	7,397	$	9,855
2013 grant	8,918			7,336		9,493
2014 grant	3,503			2,935		3,663
2015 grant	4,072			3,205		—
2016 grant	4,002			—		—
Total	$	20,413		$	20,873	$	23,011

- Definition

The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

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