Stock-Based Compensation

For the third quarter 2017 and 2016, respectively, the Company recognized stock compensation expense of $2.6 million and $2.4 million, and related tax benefit of $1.5 million and $0.9 million. For September year to date 2017 and 2016, respectively, the Company recognized stock compensation expense of $6.8 million and $7.6 million, and related tax benefit of $3.3 million and $2.9 million.

Performance Shares

During 2017, the Company granted performance awards associated with the Company’s Class A stock to certain senior officers. The payment of performance shares, which will be satisfied with the issuance of shares out of treasury stock, is contingent upon the achievement of specific performance goals over a stated period of time. The maximum number of performance shares that may be earned is 200% of the target shares originally granted. These awards have a three-year performance period and will cliff vest after the approval by the Compensation Committee, if not forfeited by the recipient. No dividends are paid on these performance shares.

Financial measure performance goals may be earned upon the achievement of two financial goals and had a weighted average grant date fair value of $21.07. For each of the two financial measures, there are annual goals set in February of each year, with the total award payout based on a cumulative average of the 2017, 2018 and 2019 goals. Accordingly, the Company remeasures the fair value of the 2017 and 2016 financial measure performance shares each reporting period until the third year goals are set, after which the fair value will be fixed for the remaining performance period. As of third quarter-end 2017, for the performance shares granted in 2017 and 2016, the current fair value for the financial measure performance shares was $24.22 and $24.29, respectively.

Total shareholder return (“TSR”) performance shares may be earned based on the Company’s TSR relative to the S&P SmallCap 600 Index. The TSR performance shares have an estimated fair value of $20.16, which was computed using a Monte Carlo simulation model incorporating assumptions for inputs of expected stock price volatility, dividend yield and risk-free interest rate.

A summary of the status of all nonvested performance shares at target for September year to date 2017 is presented as follows below (in thousands of shares except per share data). Forfeitures primarily relate to the retirement of the Company’s former President and Chief Executive Officer in the second quarter of 2017.



	Financial Measure Performance Shares				TSR Performance Shares
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Nonvested at year-end 2016	499		$	19.17	208		$	17.49
Granted	286		21.32		101		20.16
Vested	—		—		—		—
Forfeited	(182	)	20.32		(65	)	18.99
Nonvested at third quarter-end 2017	603		$	21.19	244		$	18.20

Restricted Stock

A summary of the status of nonvested restricted stock as of third quarter-end 2017 and year-to-date changes, is presented as follows below (in thousands of shares except per share data). Forfeitures primarily relate to the retirement of the Company’s former President and Chief Executive Officer during the second quarter of 2017.



	Shares		Weighted Average Grant Date Fair Value
Nonvested at year-end 2016	653		$	16.58
Granted	189		21.90
Vested	(74	)	17.25
Forfeited	(163	)	16.91
Nonvested at second quarter-end 2017	605		18.07
Granted	19		21.85
Vested	(164	)	16.73
Forfeited	(2	)	19.82
Nonvested at third quarter-end 2017	458		$	18.71