Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2017

Share-Based Compensation

Summary of Time-Based Nonvested Share Awards Granted

		Three months ended March 31,
	2017		2016
Number of shares granted		282,860	269,311
Market value (in millions)	$	15.4	12.0

Summary of Market-Based Awards Granted

The following table summarizes the market-based awards granted during the first three months of 2017 and 2016:

Year Awarded	Performance Period Ending	Performance Measure	Number of Shares Granted	Period Expensed Through
2017	December 2019	TSR	42,644	December 2019
2016	December 2018	TSR	47,004	December 2018

Summary of Performance-Based Awards Granted

The following table summarizes the performance-based awards granted during the first three months of 2017 and 2016:

Year Awarded	Performance Period Ending	Performance Measure	Number of Shares Granted	Period Expensed Through
2017	December 2019	Net Revenue and Adjusted Diluted EPS1	99,492	December 2019
2017	December 2017	Net Revenue and Adjusted Diluted EPS1	146,094	December 2019
2016	December 2018	Revenue Growth and CAOI Growth2	67,517	December 2018
2016	December 2018	Adjusted EPS3	109,684	December 2018
2016	December 2016	Revenues before Reimbursable Items4 and Adjusted EPS3	140,425	December 2018

¹ Adjusted Diluted EPS is adjusted earnings divided by weighted average diluted shares outstanding used for diluted EPS calculations.Adjusted earnings is net income excluding the after-tax impact of share-based compensation expenses, amortization of acquisition intangibles, merger and acquisition expenses for completed acquisitions and litigation claims, judgments or settlement expenses and related legal expenses.

² CAOI is adjusted segment operating income and includes corporate administrative expenses. Adjusted segment operating income is defined in Note 7.

³ Adjusted EPS is adjusted earnings divided by weighted average shares outstanding used for basic EPS.

⁴ Revenues before Reimbursable Items is total revenue less reimbursable items which consist of out-of-pocket expenses which are reimbursed by the Company’s clients. These expenses consist primarily of postage, access fees and third-party software.

Summary of Weighted Average Assumptions and Fair Value of Options

			Three months ended March 31,
	2017				2016
Number of options granted		481,712			464,408
Weighted average exercise price	$	54.47			44.48
Risk-free interest rate		1.77		%	1.24	%
Expected volatility		21.72		%	21.03	%
Expected term (years)		4.6			4.6
Dividend yield		0.73		%	0.90	%
Weighted average fair value	$	10.73			7.89