Earnings per Share & Stock Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

The Company maintains two shareholder-approved Company Stock Incentive Plans allowing for the grant of equity based incentive compensation to essentially all employees. The 2005 Plan authorized grants of up to 2,880,000 shares over a ten-year period beginning in 2005. The term of the 2005 Plan expired in February 2014; outstanding awards will continue to vest and options may continue to be exercised, but no additional awards will be granted under the 2005 Plan. The 2014 Plan authorizes grants of up to an additional 3,000,000 shares over a ten-year period beginning in 2014. Under these Plans, grants may take the form of stock awards, awards of options to acquire stock, stock appreciation rights, and other forms of equity based compensation; both options to acquire stock and stock awards were granted.

The Company granted approximately 96 thousand restricted stock units (RSUs) to employees and directors during 2020 at an average market price of $49.02. The Company also granted, approximately 40 thousand Relative Total Shareholder Return (“RTSR”) awards to employees at an average value of $56.32 during 2020.

Restricted stock units generally have service requirements only or performance and service requirements with vesting periods ranging from one year for directors to four years for employees. RTSR awards vest over three years. The performance factor applied to the RTSR awards is based upon the Company's stock performance compared to a group of peer companies. The actual number of shares to be issued and can range from 0% to 150% of the awards granted.

The cost of employee services received in exchange for share-based awards classified as equity is measured using the estimated fair value of the award on the date of the grant, and the related expense is recorded using the straight-line method consistent with the recipient's respective service period.

Stock-based compensation expense was as follows:


	Years Ended December 31,
(in thousands)	2020		2019		2018
Stock compensation expense	$	6,227	$	3,732	$	5,153
Capitalized stock compensation	320		365		408
Stock compensation expense, net	$	5,907	$	3,367	$	4,745

As of both December 31, 2020 and 2019, there was $3.7 million of total unrecognized compensation cost related to non-vested incentive awards that are expected to be recognized over a weighted average period of 2.6 years.

We utilize the treasury stock method to calculate the impact on diluted earnings per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings per share:


	Years Ended December 31,
(in thousands, except per share amounts)	2020		2019		2018
Calculation of net income per share:
Income from continuing operations	$	2,626	$	2,388	$	2,077
Income from discontinued operations, net of tax	$	124,097	$	53,568	$	44,518
Net income	$	126,723	$	55,956	$	46,595
Basic weighted average shares outstanding	49,901		49,811		49,542
Basic net income per share - continuing operations	$	0.05	$	0.05	$	0.04
Basic net income per share - discontinued operations	$	2.49	$	1.07	$	0.90
Basic net income per share	$	2.54	$	1.12	$	0.94

Effect of stock-based compensation awards outstanding:
Basic weighted average shares outstanding	49,901		49,811		49,542
Effect from dilutive shares and options outstanding	123		290		521
Diluted weighted average shares outstanding	50,024		50,101		50,063
Diluted net income per share - continuing operations	$	0.05	$	0.05	$	0.04
Diluted net income per share - discontinued operations	$	2.48	$	1.07	$	0.89
Diluted net income per share	$	2.53	$	1.12	$	0.93

There were fewer than 110 thousand anti-dilutive awards outstanding during 2020, 2019, and 2018.