Stock-Based Incentive Plans

6 Months Ended

Jun. 30, 2016

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

The Company currently has one stock-based incentive plan, which incorporates and supersedes its two previous plans (see Note 1 “Basis of Presentation — Accounting for Stock-Based Compensation”). Participants are granted stock-based awards only if the applicable Company-wide and/or profit-center operating goals, established at the beginning of the year by the Compensation and Leadership Development Committee of the Company's Board of Directors are met. Certain participants may have additional goals based on strategic initiatives of the Company.

The fair value of each restricted stock unit award is estimated on the measurement date as determined in accordance with GAAP and is based on the closing market price of the underlying stock on the day preceding the measurement. The fair value excludes the present value of the dividends that the restricted stock units do not participate in. On February 1, 2016, 431,439 restricted stock units were awarded to the Company's employees, including officers, at an estimated value of $32.63 per share, based on the closing price on January 29, 2016. The restrictions on these awards will generally lapse one quarter on the date of the award and one quarter on each of the first, second and third anniversaries of the date of the award, except that restrictions on some of the awards made to each of the Company's named executive officers and certain members of the Company's senior management will lapse fully on the third anniversary of the date of the award. On April 20, 2016, 1,800 restricted stock units were awarded to each of the Company’s six non-employee directors at an estimated value of $38.00 per share based on the closing price on April 19, 2016. There are no restrictions on the non-employee directors’ restricted stock units granted on April 20, 2016.

The following table summarizes the Company’s unvested restricted stock unit activity for the six months ended June 30, 2016:



	Shares		Weighted- Average Price		Aggregate Intrinsic Value *
Unvested Restricted Stock Units (RSUs)	(in thousands)		Weighted- Average Price		(in thousands)
Outstanding at January 1, 2016	527		$	31.56
Awarded	442
Vested	(340	)
Forfeited	(11	)
Outstanding at June 30,2016	618		$	31.81	$	24,745
Outstanding and expected to vest at June 30, 2016	605		$	31.81	$	24,163


*	The intrinsic value is calculated using the closing price per share of $39.97 as reported by the New York Stock Exchange on June 30, 2016.

Based on the market value on the award date, the total intrinsic value of restricted stock units vested during the six-month periods ended June 30, 2016 and 2015, was $10.7 million and $10.1 million, respectively.

No stock options were granted in 2015 or in the first six months of 2016. As of June 30, 2016, there were no unvested options outstanding. The following table summarizes the Company’s stock option activity for the six months ended June 30, 2016:



	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value *
Non-Qualified Stock Options	(in thousands)				(in years)	(in thousands)
Outstanding at January 1, 2016	523		$	29.55
Exercised	(86	)
Forfeited	(1	)
Outstanding and exercisable at June 30, 2016	436		$	29.61	1.6	$	4,511


*	The intrinsic value represents the amount, if any, by which the fair market value of the underlying common stock exceeds the exercise price of the stock option, using the closing price per share of $39.97 as reported by the New York Stock Exchange on June 30, 2016.

The total intrinsic value of stock options exercised during the six-month periods ended June 30, 2016 and 2015, was $0.7 million and $1.2 million, respectively.

As of June 30, 2016, $27.1 million of total unrecognized compensation cost was related to unvested stock-based compensation arrangements under the 2011 Plan for awards made through February 2016 and those expected to be made through January 2017. The portion of this cost related to restricted stock units awarded through February 2016 is expected to be recognized over a weighted-average period of 2.1 years.