Stock-Based Compensation

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

During the three months ended June 30, 2017, under the Herc Holdings Inc. 2008 Omnibus Incentive Plan (the "Omnibus Plan"), the Company granted 39,227 restricted stock units ("RSUs") and 4,510 performance stock units ("PSUs") at a weighted average grant date fair value of $37.46 per unit. Approximately 27,800 of the RSUs vest 100%one year following the grant date with the remaining vesting 100%three years following the grant date, and the PSUs vest 100%three years following the grant date provided the performance target is met at the vesting date.

A summary of the total compensation expense and associated income tax benefits recognized under the Omnibus Plan are as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Compensation expense	$	3.0		$	1.7		$	4.5		$	2.7
Income tax benefit	(1.2		)	(0.6		)	(1.8		)	(1.0		)
Total	$	1.8		$	1.1		$	2.7		$	1.7

Stock-based compensation expense includes expense attributable to the Company based on the terms of the awards granted under the Omnibus Plan to the Company's employees. Additionally, during three and six months ended June 30, 2016, stock-based compensation expense includes an allocation of THC's corporate and shared functional employee expenses of $1.4 million and $2.0 million, respectively, on a pre-tax basis.

As of June 30, 2017, there was $21.5 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted under the Omnibus Plan. The total unrecognized compensation cost is expected to be recognized over the remaining 2.2 years, on a weighted average basis, of the requisite service period that began on the grant dates.

Employee Stock Purchase Plan

In connection with the Spin-Off, Herc Holdings inherited the Hertz Global Holdings, Inc. Employee Stock Purchase Plan (the "ESPP"). At the date of the Spin-Off, the ESPP had been suspended; however, the Company reinstated the ESPP on January 1, 2017, which was amended and restated as the Herc Holdings Inc. Employee Stock Purchase Plan.

The ESPP enables eligible employees to purchase the Company's common stock at a price per share equal to 85% of the fair market value of a share at the acquisition date. Payment for shares is made through payroll deductions based on a predetermined contribution amount established by the individual employee. During the three and six months ended June 30, 2017, the Company recognized compensation expense of $0.1 million and $0.2 million, respectively, related to the ESPP.