Share-Based Awards

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

The Company has a share-based compensation plan which was approved by its shareholders in April 2014 (the Plan) under which its Board of Directors may grant to employees share-based awards including restricted stock units (RSUs), performance shares, and nonqualified stock options. 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. Stock options expire 10 years from the date of grant. At December 31, 2019, there were 7.2 million shares of common stock available for future awards under the Plan.

The Company recognizes the cost of its share-based awards in the Consolidated statements of income. The cost of each share-based equity award is based on the grant date fair value and the cost of each share-based cash-settled award is based on the settlement date fair value. Forfeitures for share-based awards are estimated at the grant date and adjusted when it is likely to change. Share-based award expense is recognized on a straight-line basis over the service or performance periods of each separately vesting tranche within the awards. The expense recognized reflects the number of awards that are ultimately expected to vest based on the service and, if applicable, performance requirements of each award. Total share-based award compensation expense recognized by the Company during 2019, 2018 and 2017 was $33.7 million, $35.5 million and $32.5 million, respectively, or $25.8 million, $27.2 million and $20.5 million net of taxes, respectively.

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 activity for these awards for the year ended December 31, 2019 was as follows (in thousands, except for per share amounts):



	Shares & Units		Weighted-Average Fair Value Per Share
Nonvested, beginning of period	1,894		$	48
Granted	1,149		$	37
Vested	(717	)	$	46
Forfeited	(315	)	$	41
Nonvested, end of period	2,011		$	43

As of December 31, 2019, there was $31.1 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 settled in cash are recorded in the 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 activity for these awards for the year ended December 31, 2019 was as follows (in thousands, except for per share amounts):



	Units		Weighted-Average Fair Value Per Share
Nonvested, beginning of period	105		$	39
Granted	94		$	38
Vested	(48	)	$	37
Forfeited	(24	)	$	35
Nonvested, end of period	127		$	38

Stock Options – There were no stock options granted in 2019, 2018 or 2017. 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 stock option transactions for the year ended December 31, 2019 were as follows (in thousands, except for per share amounts):



	Options		Weighted-Average Exercise Price
Outstanding, beginning of period	1,055		$	50
Exercised	(168	)	$	21
Forfeited	(71	)	$	54
Outstanding, end of period	816		$	56

Exercisable, end of period	816		$	56

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



	2019		2018		2017
Exercised	$	2,614	$	3,855	$	4,051
Outstanding	$	52	$	2,366	$	11,711
Exercisable	$	52	$	2,366	$	11,711

Stock options outstanding at December 31, 2019 were as follows (options in thousands):



Price Range	Weighted-Average Contractual Life	Options	Weighted-Average Exercise Price
$20.01 to $30	0.5	4	$	24
$40.01 to $50	1.6	207	$	44
$50.01 to $60	2.9	157	$	52
$60.01 to $70	4.3	448	$	63
Options outstanding	3.0	816	$	56

Options exercisable	3.0	816	$	56