XML 64 R46.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Share Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Share Based Compensation [Abstract]  
Summary of Terms of Awards Generally Granted to Employees

The following table summarizes the terms of Awards generally granted to employees:

 

 

 

Options

 

Restricted Shares

 

Restricted Units

Overview

 

Options exercised after vesting result in issuance of new Common Shares.

 

Restricted shareholders generally have the same voting rights and receive quarterly dividend payments on their shares at the same rate and on the same date as any other Common Share holder (1).

 

When certain conditions are met, restricted units convert into an equal number of OP Units, which the holder may exchange for Common Shares on a one-for-one basis or at the option of the Company the cash value of such shares. Restricted unitholders receive quarterly distribution payments on their restricted units at the same rate and on the same date as any other OP Unit holder (1).

Grant/Exercise

Price

 

Granted at the fair market value of Common Shares as of the grant date.

 

Granted at the fair market value of Common Shares as of the grant date.

 

Granted at varying discount rates to the fair market value of Common Shares as of the grant date (2).

Vesting Period

 

In three equal installments over a three-year period from the grant date.

 

Three years from the grant date.

 

Three years from the grant date.

Expiration

 

Ten years from the grant date.

 

Not applicable.

 

Ten years from the grant date (2).

Upon Employee

Termination

 

Unvested options are canceled.

 

Unvested restricted shares are canceled.

 

Unvested restricted units are canceled.

(1)

Dividends/distributions paid on unvested restricted shares and units are included as a component of retained earnings and Noncontrolling Interest – Operating Partnership/Limited Partners Capital, respectively, and have not been considered in reducing net income available to Common Shares/Units in a manner similar to the Company’s preferred share/preference unit dividends for the earnings per share/Unit calculation.

(2)

A restricted unit will automatically convert to an OP Unit when the capital account of each restricted unit increases (“books-up”) to a specified target.  The probability of a book-up occurring within the ten-year contractual life along with the liquidity risk associated with various hold period restrictions are both reflected in the discount.  If the capital target is not attained within ten years following the date of issuance, the restricted unit will automatically be canceled and no compensation will be payable to the holder of such canceled restricted unit.  If the capital target is attained and the restricted unit is converted to an OP Unit, it will not expire.
Summary of Terms of Each Retirement Eligibility Category The following table summarizes the terms of each retirement eligibility category.

 

 

 

Age 62 for Employees

 

Rule of 70 for Employees

 

Age 72 for Trustees

Eligibility

 

For employees hired prior to January 1, 2009 and who were age 59 or older as of February 1, 2019.

 

All employees (1).

 

All non-employee Trustees.

Effect on unvested restricted shares,

restricted units and Options

 

Awards immediately vest and Options continue to be exercisable for the balance of the applicable ten-year option period.

 

Awards continue to vest per the original vesting schedule, subject to certain conditions, and Options continue to be exercisable for the balance of the applicable ten-year option period.

 

Awards immediately vest and Options continue to be exercisable for the balance of the applicable ten-year option period.

Effect on LTI Plan

 

Awards are prorated in proportion to the number of days worked in the first year of the three-year performance period and the individual does not receive any payout of shares or units until the final payout is determined at the end of the three-year performance period.

 

(1)

The Rule of 70 is met when an employee’s years of service with the Company (which must be at least 15 years) plus his or her age (which must be at least 55 years) on the date of termination equals or exceeds 70 years.  In addition, the employee must give the Company at least six months’ advance written notice of his or her intention to retire along with agreeing to certain other conditions.
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

The following tables summarize compensation information regarding the restricted shares, restricted units, Options and Employee Share Purchase Plan (“ESPP”) for the three years ended December 31, 2019, 2018 and 2017.

 

 

 

Year Ended December 31, 2019

 

 

 

Compensation

Expense

 

 

Compensation

Capitalized

 

 

Restricted Units/Options

In-Lieu of Bonus (1)

 

 

Compensation

Equity

 

 

Dividends

Incurred

 

Restricted shares (2)

 

$

11,522

 

 

$

916

 

 

$

—

 

 

$

12,438

 

 

$

979

 

Restricted units (2)

 

 

9,905

 

 

 

240

 

 

 

3,265

 

 

 

13,410

 

 

 

825

 

Options

 

 

2,420

 

 

 

254

 

 

 

1

 

 

 

2,675

 

 

 

—

 

ESPP discount

 

 

602

 

 

 

40

 

 

 

—

 

 

 

642

 

 

 

—

 

Total

 

$

24,449

 

 

$

1,450

 

 

$

3,266

 

 

$

29,165

 

 

$

1,804

 

 

 

 

Year Ended December 31, 2018

 

 

 

Compensation

Expense

 

 

Compensation

Capitalized

 

 

Restricted Units/Options

In-Lieu of Bonus (1)

 

 

Compensation

Equity

 

 

Dividends

Incurred

 

Restricted shares (2)

 

$

7,406

 

 

$

852

 

 

$

—

 

 

$

8,258

 

 

$

754

 

Restricted units (2)

 

 

12,310

 

 

 

36

 

 

 

1,663

 

 

 

14,009

 

 

 

963

 

Options

 

 

6,683

 

 

 

296

 

 

 

2,755

 

 

 

9,734

 

 

 

—

 

ESPP discount

 

 

733

 

 

 

34

 

 

 

—

 

 

 

767

 

 

 

—

 

Total

 

$

27,132

 

 

$

1,218

 

 

$

4,418

 

 

$

32,768

 

 

$

1,717

 

 

 

 

Year Ended December 31, 2017

 

 

 

Compensation

Expense

 

 

Compensation

Capitalized

 

 

Restricted Units/Options

In-Lieu of Bonus (1)

 

 

Compensation

Equity

 

 

Dividends

Incurred

 

Restricted shares (2)

 

$

9,209

 

 

$

568

 

 

$

—

 

 

$

9,777

 

 

$

761

 

Restricted units (2)

 

 

10,214

 

 

 

119

 

 

 

190

 

 

 

10,523

 

 

 

741

 

Options

 

 

4,893

 

 

 

323

 

 

 

1,619

 

 

 

6,835

 

 

 

—

 

ESPP discount

 

 

681

 

 

 

66

 

 

 

—

 

 

 

747

 

 

 

—

 

Total

 

$

24,997

 

 

$

1,076

 

 

$

1,809

 

 

$

27,882

 

 

$

1,502

 

 

(1)

The Company allows eligible officers the ability to receive immediately vested restricted units (subject to the book-up provisions described above and a two-year hold restriction) or immediately vested Options in-lieu of any percentage of their annual cash bonus.

(2)

Includes LTI plan awards granted under the executive compensation program.
Award Activity of the Share Incentive Plans

 

The tables below summarize the Award activity of the Share Incentive Plans for the three years ended December 31, 2019, 2018 and 2017:

 

 

 

Common

Shares Subject

to Options

 

 

Weighted

Average

Exercise Price

per Option

 

 

Restricted

Shares

 

 

Weighted

Average Fair

Value per

Restricted Share

 

 

Restricted

Units

 

 

Weighted

Average Fair

Value per

Restricted Unit

 

Balance at December 31, 2016

 

 

6,023,101

 

 

$

42.05

 

 

 

452,034

 

 

$

70.35

 

 

 

802,257

 

 

$

75.26

 

Awards granted (1) (5)

 

 

1,337,898

 

 

$

60.88

 

 

 

93,867

 

 

$

61.94

 

 

 

291,921

 

 

$

68.57

 

Awards exercised/vested (2) (3) (4)

 

 

(846,137

)

 

$

37.26

 

 

 

(165,744

)

 

$

58.04

 

 

 

(192,644

)

 

$

54.16

 

Awards forfeited

 

 

(27,547

)

 

$

61.85

 

 

 

(10,416

)

 

$

72.44

 

 

 

(274

)

 

$

75.50

 

Awards expired

 

 

(3,483

)

 

$

65.91

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Balance at December 31, 2017

 

 

6,483,832

 

 

$

46.46

 

 

 

369,741

 

 

$

73.67

 

 

 

901,260

 

 

$

77.61

 

Awards granted (1) (5)

 

 

1,730,942

 

 

$

60.40

 

 

 

129,303

 

 

$

62.25

 

 

 

267,074

 

 

$

61.60

 

Awards exercised/vested (2) (3) (4)

 

 

(1,056,388

)

 

$

29.05

 

 

 

(194,116

)

 

$

77.32

 

 

 

(28,486

)

 

$

55.50

 

Awards forfeited

 

 

(38,133

)

 

$

60.74

 

 

 

(5,503

)

 

$

65.77

 

 

 

—

 

 

$

—

 

Awards expired

 

 

(8,018

)

 

$

59.70

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Balance at December 31, 2018

 

 

7,112,235

 

 

$

52.35

 

 

 

299,425

 

 

$

66.52

 

 

 

1,139,848

 

 

$

71.07

 

Awards granted (1) (5)

 

 

234,147

 

 

$

72.10

 

 

 

163,799

 

 

$

73.96

 

 

 

141,772

 

 

$

67.22

 

Awards exercised/vested (2) (3) (4)

 

 

(1,745,050

)

 

$

44.72

 

 

 

(151,321

)

 

$

75.41

 

 

 

(422,784

)

 

$

70.77

 

Awards forfeited

 

 

(30,489

)

 

$

61.92

 

 

 

(5,197

)

 

$

65.35

 

 

 

(552

)

 

$

69.43

 

Awards expired

 

 

(3,299

)

 

$

40.39

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Balance at December 31, 2019

 

 

5,567,544

 

 

$

55.52

 

 

 

306,706

 

 

$

66.15

 

 

 

858,284

 

 

$

64.95

 

(1)

The weighted average grant date fair value for Options granted during the years ended December 31, 2019, 2018 and 2017 was $8.05 per share, $6.17 per share and $5.86 per share, respectively.

(2)

The aggregate intrinsic value of Options exercised during the years ended December 31, 2019, 2018 and 2017 was $58.1 million, $42.9 million and $25.6 million, respectively.  These values were calculated as the difference between the strike price of the underlying awards and the per share price at which each respective award was exercised.

(3)

The fair value of restricted shares vested during the years ended December 31, 2019, 2018 and 2017 was $11.1 million, $11.5 million and $10.2 million, respectively.

(4)

The fair value of restricted units vested during the years ended December 31, 2019, 2018 and 2017 was $29.1 million, $1.8 million and $11.7 million, respectively.

(5)

Includes LTI plan awards granted under the executive compensation program.
Information Regarding Options Outstanding and Exercisable

The following table summarizes information regarding Options outstanding and exercisable at December 31, 2019 (aggregate intrinsic value is in thousands):

 

 

 

Options

 

 

Weighted

Average

Remaining

Contractual Life

in Years

 

 

Weighted

Average

Exercise Price

 

 

Aggregate

Intrinsic

Value (1)

 

Options Outstanding

 

 

5,567,544

 

 

 

5.30

 

 

$

55.52

 

 

$

141,395

 

Options Exercisable

 

 

4,750,481

 

 

 

4.81

 

 

$

54.13

 

 

$

127,277

 

Vested and expected to vest

 

 

808,646

 

 

 

8.13

 

 

$

63.60

 

 

$

14,005

 

 

(1)

The aggregate intrinsic values were calculated as the excess, if any, between the Company’s closing share price of $80.92 per share on December 31, 2019 and the strike price of the underlying awards.