Stock-Based Compensation

The Company has granted restricted common stock and restricted stock units (collectively, "restricted stock") and performance share units as long-term incentive awards to employees and non-employee directors under the Company's 2014 Stock Incentive Plan ("2014 Plan") and the Company's 2018 Stock Incentive Plan ("2018 Plan"). The Company's Board of Directors adopted the 2018 Plan as a replacement to the 2014 Plan in February 2018, and the Company's stockholders approved the 2018 Plan at the annual meeting of stockholders on April 25, 2018. After stockholders approved the 2018 Plan, the Company could no longer make grants under the 2014 Plan. The shares that were available for issuance under the 2014 Plan were cancelled upon approval of the 2018 Plan. The 2018 Plan authorizes the issuance of a total of 7.0 million shares, of which approximately 6.9 million shares were available for future issuance as of June 30, 2018.

Restricted stock In the first six months of 2018, the Company granted restricted stock relating to 673,961 shares and 19,656 shares to employees and non-employee directors, respectively. Restricted stock granted to employees generally vests 50% after two years and the remainder after three years from the date of grant. Restricted stock granted to non-employee directors generally vests on the first anniversary of the date of grant. The Company recognizes the value of the restricted stock, which is equal to the market value of the Company’s common stock on the date of grant, as compensation expense ratably over the restricted stock's vesting period. As of June 30, 2018, the Company had $46.7 million of unrecognized compensation expense that will be recognized over a weighted average period of 2.0 years. The Company recorded restricted stock compensation expense of $5.4 million and $6.7 million for the three months ended June 30, 2018 and 2017, respectively, and $11.9 million and $13.5 million for the six months ended June 30, 2018 and 2017, respectively.

A summary of the Company’s nonvested restricted stock for the six months ended June 30, 2018 is as follows:



	Shares subject to restriction (thousands)		Weighted average grant date fair value
Nonvested at December 31, 2017	1,593		$	38.86
Granted	625		$	52.64
Vested	(486	)	$	41.05
Forfeited	(7	)	$	49.48
Nonvested at March 31, 2018	1,725		$	43.26
Granted	68		$	50.86
Vested	(68	)	$	51.11
Forfeited	(142	)	$	45.68
Nonvested at June 30, 2018	1,583		$	43.03

Total Stockholder Return Performance Share Units The Company grants performance share units to members of senior management that vest at the end of three-year periods based on the Company's total stockholder return relative to a peer group of companies. The Company recorded compensation expense of $0.5 million and $2.3 million for the three months ended June 30, 2018 and 2017, respectively, and $2.2 million and $5.4 million for the six months ended June 30, 2018 and 2017, respectively.

Relative Revenue Growth Performance Share Units The Company also grants performance share units to members of senior management that vest based on the Company's revenue growth relative to the vehicle market over three-year performance periods. The Company's compensation expense was $1.2 million and $2.2 million for the three months ended June 30, 2018 and 2017, respectively, and $7.7 million and $5.4 million for the six months ended June 30, 2018 and 2017, respectively.

A summary of the status of the Company’s non-vested relative revenue growth performance share units for the six months ended June 30, 2018 is as follows:



	Number of shares (thousands)		Weighted average grant date fair value
Non-vested at December 31, 2017	355		$	39.42
Granted	175		$	52.64
Non-vested at March 31, 2018	530		$	43.79
Granted	95		$	50.20
Forfeited	(144	)	$	45.82
Non-vested at June 30, 2018	481		$	44.45

The restricted stock and performance share unit compensation expense for the three and six months ended June 30, 2018 disclosed above includes a net reduction to expense of $4.1 million related to the Company's second quarter of 2018 decision to modify the vesting provisions of existing restricted stock and performance share unit grants made to a retiring executive officer to allow certain of the outstanding awards, that otherwise would have been forfeited, to vest upon retirement. Additional incremental compensation expense of $15.8 million related to these modified awards will be recognized ratably through February 2019.

Stockholder's Equity During the six months ended June 30, 2018, the Company paid cash dividends of $71.1 million and repurchased 2,224,503 shares of common stock at a total cost of approximately $113.5 million. In connection with the stock based compensation plans above, the Company issued approximately 858,175 shares from treasury stock during the six months ended June 30, 2018. During the six months ended June 30, 2018, the Company declared dividends of $35.5 million to noncontrolling interest stockholders, of which $24.9 million were paid out.