STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2017

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

5. STOCK-BASED COMPENSATION

In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive Plan with a term of 10 years expiring in April 2024. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares. As of September 30, 2017, there were 5,757,734 shares available for grant.

Stock-based employee compensation expense was as follows for the periods indicated:

	Three months ended				Nine months ended
	September 30,				September 30
(in thousands)	2017		2016		2017		2016
Pre-tax expense	$	3,007	$	2,703	$	9,019	$	8,065
After tax expense	$	1,909	$	1,716	$	5,727	$	5,121

Restricted Stock

The following is a summary of the changes in non-vested restricted shares for the nine months ended September 30, 2017:

	Shares			Weighted Average  Grant-Date Fair  Value
Non-vested shares at December 31, 2016		3,217,075		$	12.91
Granted		563,065			21.66
Vested		(894,042	)		13.34
Forfeited		(103,933	)		14.05
Non-vested shares at September 30, 2017		2,782,165		$	14.50

The total fair value of shares vested was approximately $19,271,000 during the nine months ended September 30, 2017 and $9,611,000 during the nine months ended September 30, 2016. Excess tax benefits realized from tax compensation deductions in excess of compensation expense have been reflected as follows:

· $2,562,000 for the nine months ended September 30, 2017 has been recorded as a discrete income tax adjustment and classified within operating activities in the consolidated statements of cash flows; and

· $360,000 for the nine months ended September 30, 2016 were credited to capital in excess of par value and classified within financing activities as an inflow in addition to being disclosed as an outflow within operating activities in the consolidated statements of cash flows.

The change in classification beginning in the first quarter of 2017 was in accordance with the amendments of ASU 2016-09.

As of September 30, 2017, total unrecognized compensation cost related to non-vested restricted shares was $41,850,000, which is expected to be recognized over a weighted-average period of 3.5 years.