Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company’s incentive compensation plans allow the Company to grant awards to employees in the form of stock options, stock awards, restricted stock units, stock appreciation rights, performance stock units, dividend equivalents and other awards. Compensation related to these awards is determined based on the grant-date fair value and is amortized to expense over the vesting period. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire without forfeiture of the award. If awards can be settled in cash, these awards are recorded as liabilities and marked to market.

The following table discloses the amount of stock-based compensation expense:

	Stock-Based Compensation
	2019		2018		2017
Stock options	$	—	$	—	$	14
Restricted stock units	2,836		3,196		3,302
Performance stock units	1,526		672		693
Total stock-based compensation	$	4,362	$	3,868	$	4,009

Stock Options

The 2010 and 2014 Incentive Compensation Plans provide for granting options to key employees to purchase common shares at prices not less than market at the date of grant. Options under these plans may have terms of up to ten years becoming exercisable in whole or in consecutive installments, cumulative or otherwise. The plans allow the granting of nonqualified stock options which are not intended to qualify for the tax treatment applicable to incentive stock options under provisions of the Internal Revenue Code.

In February 2014, executives participating in the 2014-2016 Long-Term Incentive Plan were granted 380,064 stock options, which vested one-third each year through February 2017. No stock options have been granted to executives participating in the Long-Term Incentive Plan since then. Outstanding options do not contain any performance-based criteria. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire.

Summarized information for the plans follows:

	Number of Shares		Weighted Average Exercise Price (per share)		Aggregate Intrinsic Value (thousands)
Outstanding at December 31, 2018	268,802		$	22.27
Granted	—		—
Exercised	(24,774	)	12.50
Expired	—		—
Canceled	(5,280	)	21.72
Outstanding at December 31, 2019	238,748		23.30		$	2,157
Exercisable at December 31, 2019	238,748		23.30		2,157

	Year ended December 31,
	2019		2018		2017
Weighted average grant-date fair value of options granted (per share)	$	—	$	—	$	—
Aggregate intrinsic value of options exercised (thousands)	425		298		4,194
Weighted average grant-date fair value of shares vested (thousands)	—		—		1,400

The weighted average remaining contractual life of options outstanding at December 31, 2019 is 3.1 years. All outstanding stock options are exercisable.

Segregated disclosure of options outstanding at December 31, 2019 was as follows:

	Range of Exercise Prices
	Less than or equal to $15.63		Greater than $15.63
Options outstanding	22,965		215,783
Weighted average exercise price	$	15.63	$	24.11
Remaining contractual life	2.1		3.2
Options exercisable	22,965		215,783
Weighted average exercise price	$	15.63	$	24.11

At December 31, 2019, the Company had fully amortized all expense related to its stock option awards.

Restricted Stock Units

Under the 2001 and 2014 Incentive Compensation Plans, restricted stock units may be granted to officers and certain other employees as awards for exceptional performance, as a hiring or retention incentive or as part of the Long-Term Incentive Plan. The restricted stock units granted in 2017, 2018 and 2019 have vesting periods of three to four years. Compensation expense related to the restricted stock units granted is determined based on the fair value of the Company’s stock on the date of grant. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. Employees must remain employed for at least six months after the grant date to vest in the restricted stock units, even if retirement eligible.

The following table provides details of the nonvested restricted stock units for 2019:

	Number of Restricted Units		Weighted Average Grant-Date Fair Value (per share)		Aggregate Intrinsic Value (thousands)
Nonvested at December 31, 2018	240,991		$	35.69
Granted	120,001		32.52
Vested	(91,237	)	36.56
Canceled	(42,667	)	36.90
Accrued dividend equivalents	3,874		34.07
Nonvested at December 31, 2019	230,962		$	33.49
Vested but not released	1,483		$	18.04
Outstanding at December 31, 2019	232,445		$	33.39	$	7,761
Weighted-average remaining contractual term of shares outstanding (months)	21

	Year ended December 31,
	2019		2018		2017
Weighted average grant-date fair value of restricted shares granted (per share)	$	32.52	$	34.53	$	38.33
Weighted average grant-date fair value of shares vested (thousands)	$	3,336	$	3,000	$	5,627

The number of vested restricted stock units at December 31, 2019 and 2018 was 1,483 and 1,460, respectively. At December 31, 2019, the Company has $2,458 of unvested compensation cost related to restricted stock units and this cost will be recognized as expense over a weighted average period of 25 months.

Performance Stock Units

Compensation related to the performance stock units is determined based on the fair value of the Company’s stock on the date of grant combined with performance metrics. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire, and in accordance with the achievement of the underlying performance condition.

The following table provides details of the nonvested performance stock units earned under the Company’s Long-Term Incentive Plan:

	Number of Performance  Units		Weighted Average Grant- Date Fair Value (per share)		Aggregate Intrinsic Value (thousands)
Nonvested at December 31, 2018	32,071		$	27.79
Earned	69,938		33.27
Vested	(30,705	)	34.93
Canceled	(12,472	)	34.35
Accrued dividend equivalents	503		36.13
Nonvested at December 31, 2019	59,335		$	33.79
Vested but not released	22,529		$	34.31
Outstanding at December 31, 2019	81,864		$	33.93	$	2,778
Weighted-average remaining contractual term of performance stock units outstanding (months)	12

	Year ended December 31,
	2019		2018		2017
Weighted average grant-date fair value of performance stock units granted (per share)	$	33.27	$	36.08	$	38.23
Weighted average grant-date fair value of performance stock units vested (thousands)	$	1,073	$	1,821	$	4,213

At December 31, 2019, the Company had $763 of unvested compensation cost related to performance stock units and this cost will be recognized as expense over a weighted average period of 19 months.

The Company’s nonvested restricted stock units and performance stock units are not participating securities. These units will be converted into shares of Company common stock in accordance with the distribution date indicated in the agreements. Restricted stock units earn dividend equivalents from the time of the award until distribution is made in common shares. Performance stock units earn dividend equivalents from the time the units have been earned based upon Company performance metrics until distribution is made in common shares. Dividend equivalents are only earned subject to vesting of the underlying restricted stock units or performance stock units. Accordingly, such units do not represent participating securities.

At December 31, 2019, the company had 2,138,910 shares available for future issuance under equity compensation plans.

At both December 31, 2019 and 2018, excess tax benefits were not material, while in 2017, $1,877 of excess tax benefits were recognized as a discrete item in the provision for income taxes and included as an operating activity in the Consolidated Statement of Cash Flows as a result of the adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.”