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Share-Based Compensation
9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based and Long-Term Incentive Compensation
Share-based and long-term incentive compensation expense consists of:
 
Third Quarter
 
First Nine Months
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Cash-settled awards
$
146

 
$
(801
)
 
$
(1,005
)
 
$
(1,996
)
Equity-settled awards
1,654

 
1,307

 
4,569

 
4,897

Restricted stock
16

 
22

 
13

 
101

Stock options
388

 
463

 
1,954

 
1,521

Total share-based compensation
2,204

 
991

 
5,531

 
4,523

Deferred cash
41

 

 
195

 

 
$
2,245

 
$
991

 
$
5,726

 
$
4,523


Share-based and long-term incentive compensation expense is included in:
 
Third Quarter
 
First Nine Months
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
General and administrative expense
$
1,124

 
$
(50
)
 
$
2,970

 
$
1,217

Other operating expense
1,121

 
1,041

 
2,756

 
3,306

 
$
2,245

 
$
991

 
$
5,726

 
$
4,523


Share-Based Compensation
In first quarter 2015, we granted 89,900 cash-settled stock appreciation rights awards and 598,600 equity-settled awards. Cash-settled stock appreciation rights have a ten-year term, generally become exercisable ratably over four years and provide for accelerated or continued vesting upon retirement, death, or disability or if there is a change in control. Equity-settled awards granted to employees include market-leveraged stock units (MSUs) and stock options. Equity-settled MSUs will be settled in common stock based upon our stock price performance over three years from the date of grant. Stock options have a ten-year term, generally become exercisable ratably over four years and provide for accelerated or continued vesting upon retirement, death, or disability or if there is a change in control. Equity-settled awards in the form of restricted stock units granted to our directors are fully vested at the time of grant and are issued upon retirement.
In third quarter 2015, we granted 141,300 stock option awards in connection with management promotions. These awards have a ten-year term, vest ratably over three years and are exercisable only when our stock price exceeds $17.50 per share. We also granted 24,200 cash-settled restricted stock units which vest after three years and provide for accelerated or continued vesting upon death, disability or if there is a change in control. In addition, 36,100 cash-settled restricted stock units were awarded to certain key employees as retention grants. These awards vest over three years and are not eligible for retirement acceleration.
The fair value of awards granted to retirement eligible employees expensed at the date of grant was $517,000 and $760,000 in first nine months 2015 and 2014. Unrecognized share-based compensation expense related to non-vested equity-settled awards, restricted stock and stock options is $6,160,000 at third quarter-end 2015.
In first nine months 2015 and 2014, we issued 159,867 and 211,333 shares out of our treasury stock associated with vesting of stock-based awards or exercise of stock options, net of 48,636 and 54,272 shares withheld having a value of $722,000 and $1,024,000 for payroll taxes in connection with vesting of stock-based awards or exercise of stock options.
Long-Term Incentive Compensation
In first quarter 2015, we granted $587,000 of long-term incentive compensation in the form of deferred cash compensation. Deferred cash will be paid out after the earlier of three years or the employee's retirement eligibility date and the expense is recognized ratably over the vesting period. The accrued liability was $195,000 at third quarter-end 2015 and is included in other liabilities.