Share-Based Compensation

12 Months Ended

Dec. 31, 2019

6. Share-Based Compensation

The Company has various stock plans under which employees and directors may be granted non-vested stock which vests over a specific time period. The Company's 2017 Stock Plan was approved in April 2017 and authorized 1.8 million shares to be granted as non-vested stock in the form of restricted stock, restricted stock units, non-qualified stock options or incentive stock options, and stock appreciation rights. As of December 31, 2019, there were 1.4 million shares available to be granted as non-vested stock under the Company’s existing stock plans.

Expense for shares of non-vested stock is recognized over the vesting period with a pro-rata vesting upon retirement. The vesting period is three years beginning with awards granted in December 2013. During the period of restriction, the holder of non-vested stock has voting rights and is entitled to receive all dividends and other distributions paid with respect to the stock.

The grants issued after December 2013, to elected officers, consist of 100% performance stock unit awards which are based on a three-year performance and vesting period and a pro-rata vesting upon retirement. Three-year performance that exceeds the stated performance metrics would result in an award up to 150% of the original grant, except for the grant issued in December 2019, which would result in an award up to 200% of the original grant for three year performance that exceeds the stated performance metrics. The holders of the performance stock units are not entitled to vote or receive dividends and other distributions paid with respect to the stock, until the units have vested and the shares of stock are issued.

The Company expenses awards for non-vested stock, including time-vesting stock and performance stock units, based on the fair value of the Company’s common stock at the date of the grant.

The following table summarizes the non-vested stock and performance stock unit activity:

(In thousands except fair value)	Shares			Grant Date Weighted Average Fair Value		Aggregate Intrinsic Value
Outstanding at December 31, 2016		435		$	56.44	$	34,184
Granted		115			74.26
Vested		(114	)		39.75
Cancelled		(24	)		63.62
Outstanding at December 31, 2017		412			65.64		30,113
Granted		142			59.45
Vested		(111	)		56.91
Cancelled		(63	)		64.71
Outstanding at December 31, 2018		380			66.02		21,239
Granted		134			60.04
Vested		(46	)		63.61
Cancelled		(64	)		62.39
Outstanding at December 31, 2019		404		$	64.89	$	26,710

The total intrinsic values of shares vested during 2019, 2018, and 2017, was $3.0 million, $7.7 million, and $8.8 million, respectively.

As of December 31, 2019, total remaining unearned compensation, net of expected forfeitures, related to non-vested stock and performance stock units was $10.7 million, which will be amortized over the weighted average remaining service period of 2.54 years.

Total pre-tax share-based compensation recognized in the Consolidated Statements of Earnings was $(0.7) million, $0.5 million, and $5.9 million in 2019, 2018, and 2017, respectively. Tax related (costs) benefits of $(0.2) million, $(0.3) million, and $0.5 million were also recognized in 2019, 2018, and 2017, respectively. During the year ended December 31, 2019, the Company determined that it was not probable that it would meet the stated performance metrics related to certain performance-based awards resulting in an adjustment of share-based compensation of $3.6 million.