Share-Based Compensation

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation cost charged against income, primarily selling, general and administrative expense, and the income tax benefit recognized for our share-based compensation arrangements is included below:



	Years Ended December 31,
	2016		2015		2014
			(In thousands)
Total share-based compensation cost	$	18,178	$	17,745	$	18,858
Income tax benefit	7,069		6,867		7,334

We currently have outstanding stock appreciation rights (SARs), restricted stock units with service vesting conditions, restricted stock units with performance vesting conditions, and restricted stock units with market conditions. We grant SARs with an exercise price equal to the closing market price of our common stock on the grant date. Generally, SARs may be converted into shares of our common stock in equal amounts on each of the first three anniversaries of the grant date and expire 10 years from the grant date. Certain awards provide for accelerated vesting in certain circumstances, including following a change in control of the Company. Restricted stock units with service conditions generally vest 3-5 years from the grant date. Restricted stock units issued based on the attainment of the performance conditions generally vest on the third anniversary of their grant date. Restricted stock units issued based on the attainment of market conditions also generally vest on the third anniversary of their grant date.

We recognize compensation cost for all awards based on their fair values. The fair values for SARs are estimated on the grant date using the Black-Scholes-Merton option-pricing formula which incorporates the assumptions noted in the following table. Expected volatility is based on historical volatility, and expected term is based on historical exercise patterns of SAR holders. The fair value of restricted stock units with service vesting conditions or performance vesting conditions is the closing market price of our common stock on the date of grant. We estimate the fair value of certain restricted stock units with market conditions using a Monte Carlo simulation valuation model with the assistance of a third party valuation firm. Compensation costs for awards with service conditions are amortized to expense using the straight-line method. Compensation costs for awards with performance conditions and graded vesting are amortized to expense using the graded attribution method.



	Years Ended December 31,
	2016			2015			2014
	(In thousands, except weighted average fair value and assumptions)
Weighted-average fair value of SARs and options granted	$	18.79		$	31.22		$	35.46
Total intrinsic value of SARs converted and options exercised	9,678			14,697			24,023
Cash received for options exercised	—			30			48
Tax benefit related to share-based compensation	1,171			5,050			6,859
Weighted-average fair value of restricted stock shares and units granted	54.52			96.52			72.46
Total fair value of restricted stock shares and units vested	8,171			7,696			7,888
Expected volatility	37.47		%	35.66		%	52.63		%
Expected term (in years)	5.7			5.7			5.8
Risk-free rate	1.32		%	1.59		%	1.79		%
Dividend yield	0.38		%	0.22		%	0.28		%



	SARs and Stock Options							Restricted Shares and Units
	Number		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value		Number		Weighted- Average Grant-Date Fair Value
			(In thousands, except exercise prices, fair values, and contractual terms)
Outstanding at January 1, 2016	1,189		$	53.80				464		$	74.50
Granted	286		52.91					195		54.52
Exercised or converted	(305	)	39.36					(159	)	51.44
Forfeited or expired	(46	)	71.01					(46	)	69.64
Outstanding at December 31, 2016	1,124		$	56.79	6.9	$	20,214	454		$	69.55
Vested or expected to vest at December 31, 2016	1,112		$	56.66	6.9	$	20,143
Exercisable or convertible at December 31, 2016	640		50.89		5.6	15,289

At December 31, 2016, the total unrecognized compensation cost related to all nonvested awards was $18.8 million. That cost is expected to be recognized over a weighted-average period of 1.6 years.

Historically, we have issued treasury shares, if available, to satisfy award conversions and exercises.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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