STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 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 September 30, 2015, there were 7,115,775 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)	2015		2014		2015		2014
Pre-tax expense	$	2,586	$	2,398	$	7,695	$	7,115
After tax expense	$	1,642	$	1,523	$	4,886	$	4,518

Restricted Stock

The following is a summary of the changes in non-vested restricted shares for the nine months ended September 30, 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		(82,400	)		12.82
Non-vested shares at September 30, 2015		3,333,850		$	13.16

The total fair value of shares vested during the nine months ended September 30, 2015 was $12,727,000 and during the nine months ended September 30, 2014 was $20,634,000. Tax benefits for compensation tax deductions in excess of compensation expense for restricted shares totaled $1,410,000 for the nine months ended September 30, 2015 and $4,378,000 for the nine months ended September 30, 2014. These tax benefits were credited to capital in excess of par value and classified as financing cash flows.

As of September 30, 2015, total unrecognized compensation cost related to non-vested restricted shares was $41,247,000 which is expected to be recognized over a weighted-average period of 3.5 years.