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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
The Company's Board of Directors has granted stock incentive awards to certain employees and board members pursuant to a long term incentive plan which was approved by the Company's stockholders in May 2005 and in May 2015. Employees have been awarded non-vested stock units with performance conditions, non-vested stock units with market conditions and non-vested restricted stock. The restrictions on the non-vested restricted stock awards lapse at the end of a specified service period, which is typically three years from the date of grant. Restrictions could lapse sooner upon a business combination, death, disability or after an employee qualifies for retirement. The non-vested stock units will be converted into a number of shares of Company stock depending on performance and market conditions at the end of a specified service period, lasting approximately three years. The performance condition awards will be converted into a number of shares of Company stock based on the Company's average return on invested capital during the service period. Similarly, the market condition awards will be converted into a number of shares depending on the appreciation of the Company's stock compared to the NASDAQ Transportation Index. Board members were granted time-based awards with vesting periods of approximately six or twelve months. The Company expects to settle all of the stock unit awards by issuing new shares of stock. The table below summarizes award activity.
 
Year Ended December 31
 
2019
 
2018
 
2017
 
Number of
Awards
 
Weighted
average
grant-date
fair value
 
Number of
Awards
 
Weighted
average
grant-date
fair value
 
Number of
Awards
 
Weighted
average
grant-date
fair value
Outstanding at beginning of period
969,928

 
$
15.89

 
873,849

 
$
12.30

 
1,040,569

 
$
9.97

Granted
302,596

 
23.22

 
304,795

 
24.18

 
243,940

 
17.52

Converted
(291,064
)
 
17.14

 
(205,616
)
 
12.74

 
(320,810
)
 
9.47

Expired
(7,900
)
 
23.78

 
(500
)
 
28.38

 
(82,050
)
 
9.22

Forfeited
(9,728
)
 
23.37

 
(2,600
)
 
26.76

 
(7,800
)
 
13.55

Outstanding at end of period
963,832

 
$
17.67

 
969,928

 
$
15.89

 
873,849

 
$
12.30

Vested
476,389

 
$
11.11

 
463,422

 
$
10.25

 
441,424

 
$
7.61


The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company was $22.80, $25.15 and $16.72 for 2019, 2018 and 2017, respectively, the fair value of the Company’s stock on the date of grant. The average grant-date fair value of each market condition award granted was $24.75, $31.60 and $20.18 for 2019, 2018 and 2017, respectively. The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2019, 2018 and 2017 using daily stock prices and using the following variables:
 
2019
 
2018
 
2017
Risk-free interest rate
2.5%
 
2.4%
 
1.7%
Volatility
35.6%
 
33.8%
 
34.7%
For the years ended December 31, 2019, 2018 and 2017, the Company recorded expense of $7.0 million, $5.0 million and $3.6 million, respectively, for stock incentive awards. At December 31, 2019, there was $6.7 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.5 years. As of December 31, 2019, none of the awards were convertible, 337,060 units of the Board members' time-based awards had vested and none of the outstanding shares of the restricted stock had vested. These awards could result in a maximum number of 1,198,507 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2021.