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STOCK BASED COMPENSATION (Tables)
9 Months Ended
Sep. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation Expense Resulting from Stock Option Awards, RSUs, PSUs and ESPP

The following table presents the total stock-based compensation expense resulting from stock option awards, restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), and the Employee Stock Purchase Plan (“ESPP”) included in the Condensed Consolidated Statements of Income (Loss):

 

In millions

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Selling, general and administrative - stock option plan

$

2.5

 

 

$

3.7

 

 

$

8.4

 

 

$

11.6

 

Selling, general and administrative - RSUs

 

2.0

 

 

 

1.2

 

 

 

5.8

 

 

 

4.1

 

Selling, general and administrative - PSUs

 

1.9

 

 

 

0.2

 

 

 

4.5

 

 

 

0.6

 

Selling, general and administrative - ESPP

 

0.3

 

 

 

0.3

 

 

 

0.8

 

 

 

1.0

 

Total pre-tax expense

$

6.7

 

 

$

5.4

 

 

$

19.5

 

 

$

17.3

 

 

Stock Option Activity

Stock option activity for the nine months ended September 30, 2018 is summarized as follows:

 

 

Number of Options

 

 

Weighted Average Exercise Price per Share

 

 

Weighted Average Remaining Contractual Life

 

 

Total Aggregate Intrinsic Value

 

 

 

 

 

 

 

 

 

 

(in years)

 

 

(in millions)

 

Outstanding at January 1, 2018

 

5,393,417

 

 

$

96.91

 

 

 

 

 

 

 

 

 

Granted

 

362,382

 

 

 

62.06

 

 

 

 

 

 

 

 

 

Exercised

 

(311,792

)

 

 

49.78

 

 

 

 

 

 

 

 

 

Forfeited

 

(191,322

)

 

 

103.38

 

 

 

 

 

 

 

 

 

Canceled or expired

 

(255,538

)

 

 

105.88

 

 

 

 

 

 

 

 

 

Outstanding as of September 30, 2018

 

4,997,147

 

 

$

96.61

 

 

 

4.23

 

 

$

3.0

 

Exercisable as of September 30, 2018

 

3,557,911

 

 

$

96.39

 

 

 

3.61

 

 

$

3.0

 

 

Assumptions Used in Black-Scholes Option Pricing Model

The estimated fair value of stock options at the time of the grant using the Black-Scholes option pricing model was as follows:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Stock options granted (shares)

 

1,712

 

 

 

18,015

 

 

 

362,382

 

 

 

454,799

 

Weighted average fair value at grant date

$

18.09

 

 

$

17.83

 

 

$

16.87

 

 

$

19.48

 

Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected term (in years)

 

4.89

 

 

 

4.83

 

 

 

4.89

 

 

 

4.82

 

Expected volatility

 

25.68

%

 

 

22.95

%

 

 

25.34

%

 

 

22.68

%

Expected dividend yield

 

%

 

 

%

 

 

%

 

 

%

Risk free interest rate

 

2.74

%

 

 

1.81

%

 

 

2.58

%

 

 

1.90

%

 

Summary of RSU Activity

A summary of the status of our non-vested RSUs and changes during the nine months ended September 30, 2018, are as follows:

 

 

Number of Units

 

 

Weighted Average Grant Date Fair Value

 

 

Weighted Average Remaining Contractual Life

 

 

Total Aggregate Intrinsic Value

 

 

 

 

 

 

 

 

 

 

(in years)

 

 

(in millions)

 

Non-vested at January 1, 2018

 

267,297

 

 

$

89.74

 

 

 

 

 

 

 

 

 

Granted

 

293,698

 

 

 

62.23

 

 

 

 

 

 

 

 

 

Vested and Released

 

(62,313

)

 

 

88.29

 

 

 

 

 

 

 

 

 

Forfeited

 

(56,151

)

 

 

74.89

 

 

 

 

 

 

 

 

 

Non-vested as of June 30, 2018

 

442,531

 

 

$

73.28

 

 

 

2.08

 

 

$

26.0

 

 

Summary of PSU Activity

A summary of the status of our non-vested PSUs and changes during the nine months ended September 30, 2018, are as follows:

 

 

Number of Units

 

 

Weighted Average Grant Date Fair Value

 

Non-vested at January 1, 2018

 

11,149

 

 

$

82.85

 

Granted

 

131,182

 

 

 

63.92

 

Vested and Released

 

-

 

 

 

-

 

Forfeited

 

(24,579

)

 

 

72.23

 

Non-vested as of September 30, 2018

 

117,752

 

 

$

63.98