Share-Based Awards

The Company has a share-based compensation plan which was approved by its shareholders in April 2014 (the Plan) under which the Board of Directors may grant to employees share-based awards including restricted stock units (RSUs), performance shares, nonqualified stock options and stock appreciation rights (SARs). Performance shares include a three-year performance period with vesting based on achievement of internal performance targets. RSUs granted under the Plan vest ratably over a three-year period with the first one-third of the grant vesting one year after the date of grant. Dividends are paid on RSUs settled with stock and performance shares settled with stock. Dividend equivalents are paid on RSUs and performance shares settled with cash. The options and SARs granted under the Plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and vest ratably over a three-year period with the first one-third of the grant becoming exercisable one year after the date of grant. The options and SARs expire 10 years from the date of grant. Forfeitures for share-based awards are estimated at the grant date and adjusted when it is likely to change. At December 31, 2018, there were 8.7 million shares of common stock available for future awards under the Plan.

Restricted Stock Units and Performance Shares Settled in Stock:

The fair value of RSUs and performance shares settled in stock is determined based on the market price of the Company’s shares on the grant date. The following table summarizes the activity for these awards for the year ended December 31, 2018 (in thousands, except for per share amounts):



	Shares / Units		Weighted-Average Fair Value Per Share
Nonvested, beginning of period	1,601		$	49
Granted	927		$	47
Vested	(485	)	$	52
Forfeited	(149	)	$	49
Nonvested, end of period	1,894		$	48

As of December 31, 2018, there was $37.0 million of unrecognized compensation cost related to RSUs and performance shares settled in stock (net of estimated forfeitures) that is expected to be recognized over a weighted-average period of 1.7 years.

Restricted Stock Units and Performance Shares Settled in Cash:

RSUs and performance shares that are settled in cash are recorded in the Company’s consolidated balance sheets as a liability until vested. The fair value is determined based on the market price of the Company’s stock and is remeasured at each balance sheet date. The following table summarizes the activity for these awards for the year ended December 31, 2018 (in thousands, except for per share amounts):



	Units		Weighted-Average Fair Value Per Share
Nonvested, beginning of period	101		$	43
Granted	71		$	34
Vested	(45	)	$	48
Forfeited	(22	)	$	43
Nonvested, end of period	105		$	37

Stock Options:

There were no stock options granted in 2018, 2017 or 2016. All outstanding stock options were vested as of December 31, 2018. The Company’s policy is to issue new shares of common stock upon the exercise of employee stock options.

The following table summarizes the stock option transactions for the year ended December 31, 2018 (in thousands, except for per share amounts):



	Options		Weighted- Average Price
Outstanding, beginning of period	1,404		$	48
Exercised	(160	)	$	22
Forfeited	(189	)	$	59
Outstanding, end of period	1,055		$	50
Exercisable, end of period	1,055		$	50

The following table summarizes the aggregate intrinsic value related to options exercised, outstanding and exercisable as of and for the years ended December 31 (in thousands):



	2018		2017		2016
Exercised	$	3,855	$	4,051	$	9,595
Outstanding	$	2,366	$	11,711	$	22,383
Exercisable	$	2,366	$	11,711	$	22,383

Stock options outstanding at December 31, 2018 were as follows (options in thousands):



Price Range	Weighted-Average Contractual Life	Options	Weighted-Average Exercise Price
$10.01 to $20	0.1	50	$	12
$20.01 to $30	1.1	127	$	24
$30.01 to $40	0.0	—	$	—
$40.01 to $50	2.6	219	$	44
$50.01 to $60	3.8	171	$	52
$60.01 to $70	5.2	488	$	63
Options outstanding	4.0	1,055	$	50
Options exercisable	4.0	1,055	$	50

Stock Appreciation Rights (SARs):

There were no SARs granted in 2018, 2017 or 2016. SARs vest under the same terms and conditions as options; however, they are settled in cash equal to their settlement date fair value. As a result, SARs are recorded in the Company’s consolidated balance sheets as a liability until the date of exercise. The fair value of each unvested SAR award was estimated using a lattice-based valuation model. In accordance with ASC Topic 718, “Stock Compensation,” the fair value of each SAR award is recalculated at the end of each reporting period and the liability and expense adjusted based on the new fair value and the percent vested. All outstanding SAR awards were vested as of December 31, 2018. The assumptions used to determine the fair value of the unvested SAR awards at December 31, 2017 were as follows:



	2017
Expected average term (in years)	5.7
Expected volatility	28% - 31%
Expected dividend yield	2.9	%
Risk-free interest rate	1.3% - 2.5%

The following table summarizes the SAR transactions for the year ended December 31, 2018 (in thousands, except per share amounts):



	SARs		Weighted-Average Price
Outstanding, beginning of period	27		$	30
Exercised	(14	)	$	24
Outstanding, end of period	13		$	36
Exercisable, end of period	13		$	36