Share-Based Compensation

9 Months Ended

Sep. 30, 2017

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

Share-Based Compensation

Share-Based Compensation

The amount of compensation cost for share-based awards to be recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company analyzes historical data to estimate pre-vesting forfeitures and records share-based compensation expense for those awards expected to vest.

Total share-based compensation expenses were comprised as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017		2016
Option plan	$	5,766		$	6,210		$	12,837	$	17,772
Other share-based awards	(3,919		)	(3,139		)	18,191		15,680
Total share-based compensation before tax	1,847			3,071			31,028		33,452
Tax benefit	686			1,146			11,524		12,478
Total share-based compensation expense included in net income	$	1,161		$	1,925		$	19,504	$	20,974

In addition to the above share-based compensation expenses, Polaris sponsors a qualified non-leveraged employee stock ownership plan (ESOP). Shares allocated to eligible participants’ accounts vest at various percentage rates based on years of service and require no cash payments from the recipient.

At September 30, 2017, there was $105,401,000 of total unrecognized share-based compensation expense related to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 1.72 years. Included in unrecognized share-based compensation expense is approximately $36,774,000 related to stock options and $68,627,000 for restricted stock.