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Stock-Based Compensation
9 Months Ended
Sep. 30, 2020
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.
 Nine Months Ended
 September 30, 2020September 30, 2019
 Number of
Awards
Weighted
average
grant-date
fair value
Number of
Awards
Weighted
average
grant-date
fair value
Outstanding at beginning of period963,832 $17.67 969,928 $15.89 
Granted437,054 18.85 302,596 23.22 
Converted(200,563)19.87 (164,864)17.48 
Expired(34,100)19.40 (7,500)23.78 
Forfeited(1,000)18.90 (6,000)23.73 
Outstanding at end of period1,165,223 $17.69 1,094,160 $17.58 
Vested353,023 $8.25 337,060 $8.04 
The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company in 2020 was $18.39, 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 in 2020 was $20.41. The market condition awards were valued using a Monte Carlo simulation technique, a risk-free interest rate of 0.7% and a volatility of 35.0% based on volatility over three years using daily stock prices.
For the nine month periods ended September 30, 2020 and 2019, the Company recorded expense of $5.8 million and $5.3 million, respectively, for stock incentive awards. At September 30, 2020, there was $8.9 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.3 years. As of September 30, 2020, none of the awards were convertible, 353,023 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 1,441,373 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2022.