Stock-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2020

Stock-Based Compensation Plans

Schedule of stock option activity

A summary of stock option activity for the year ended December 31, 2020 was as follows (options and aggregate intrinsic value in millions):

				Weighted-Average
				Remaining	Aggregate
		Weighted-Average		Contractual Term	Intrinsic
	Options	Exercise Price		(Years)	Value
Outstanding as of January 1	4.5	$	18.31
Granted	0.5	$	26.20
Exercised	(0.1)	$	18.76
Cancelled/forfeited	—	$	—
Outstanding as of December 31	4.9	$	19.11	5.4	$	15.9
Options exercisable as of December 31	3.7	$	18.38	4.6	$	13.6

Schedule of restricted stock units and performance-based restricted stock units activity

A summary of activity for restricted stock units and performance-based restricted stock units for the year ended December 31, 2020 was as follows (units in millions):

		Weighted-Average
	Units	Grant-Date Fair Value
Non-vested as of January 1	7.1	$	17.92
Granted	2.8	$	25.35
Vested	(2.4)	$	17.86
Forfeited	(0.6)	$	18.83
Non-vested as of December 31	6.9	$	20.88

Schedule of impact on earnings for stock-based compensation expense

The following table sets forth the total impact on earnings for stock-based compensation expense recognized in the Consolidated Statements of Income resulting from stock options, restricted stock units, performance-based restricted stock units and deferred stock units for the years ended December 31, 2020, 2019, and 2018 (in millions, except per share data):

	2020		2019		2018
Stock-based compensation expense	$	(41.7)	$	(48.9)	$	(47.7)
Income tax benefit from stock-based compensation expense		6.9		8.5		8.3
Net income impact	$	(34.8)	$	(40.4)	$	(39.4)
Earnings per share impact:
Basic and diluted	$	(0.08)	$	(0.09)	$	(0.09)

Schedule of assumptions for the Black-Scholes option pricing model to determine the value of options granted

The Company used the following assumptions for the Black-Scholes option pricing model to determine the value of Western Union options granted for the years ended December 31, 2020, 2019, and 2018:

	2020			2019			2018
Stock options granted:
Weighted-average risk-free interest rate		1.5	%		2.5	%		2.8	%
Weighted-average dividend yield		4.0	%		4.2	%		3.9	%
Volatility		25.2	%		22.8	%		26.3	%
Expected term (in years)		7.12			7.05			6.05
Weighted-average grant date fair value	$	3.96		$	2.56		$	3.66