STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2015

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

6. 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 March 31, 2015, there were 7,106,275 shares available for grant.

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

	Three months ended
	March 31
(in thousands)	2015		2014
Pre-tax expense	$	2,523	$	2,320
After tax expense	$	1,602	$	1,473

Restricted Stock

The following is a summary of the changes in non-vested restricted shares for the three months ended March 31, 2015:

	Shares			Weighted Average Grant-Date Fair Value
Non-vested shares at December 31, 2014		3,575,150		$	12.04
Granted		895,725			12.30
Vested		(1,054,625	)		8.66
Forfeited		(26,950	)		13.84
Non-vested shares at March 31, 2015		3,389,300		$	13.15

The total fair value of shares vested during the three months ended March 31, 2015 was $12,727,000 and during the three months ended March 31, 2014 was $20,634,000.  Tax benefits for compensation tax deductions in excess of compensation expense for restricted shares totaled $1,460,000 for the three months ended March 31, 2015 and $4,455,000 for the three months ended March 31, 2014.  These tax benefits were credited to capital in excess of par value and classified as financing cash flows.

As of March 31, 2015, total unrecognized compensation cost related to non-vested restricted shares was $46,419,000 which is expected to be recognized over a weighted-average period of 3.9 years.