Stock Compensation Plan

Stock Options and Stock Appreciation Rights ("Options")

The following table presents information regarding Options awarded during the three months ended March 31, 2018:



Options granted	108,420
Per share weighted average exercise price	$	93.22
Per share weighted average grant date fair value	$	15.00

The weighted-average grant date fair value for Options granted during the three months ended March 31, 2018 was estimated using the Black-Scholes option valuation model with the following assumptions:



Expected term in years	5.7
Risk free interest rate	2.5	%
Volatility	21.5	%
Dividend yield	3.0	%

The following table presents information regarding Options that vested during the three months ended March 31, 2018:



Options vested	100,652
Aggregate grant date fair value of Options vested (in millions)	$	1.4

The following table presents information regarding outstanding Options:



	March 31, 2018		December 31, 2017
Options outstanding	537,246		464,958
Aggregate intrinsic value (in millions)	$	10.0	$	16.3
Per share weighted average exercise price	$	63.85	$	55.60
Exercisable Options	307,043		241,944
Aggregate intrinsic value (in millions)	$	9.2	$	12.1
Unvested Options	230,203		223,014
Per share weighted average grant date fair value	$	14.23	$	13.87

Performance Share Units ("PSUs") and Restricted Share Units ("RSUs")

For the three months ended March 31, 2018, the Company granted target awards of 40,747 PSUs. The measurement period for three fourths of the PSUs is January 1, 2018 through December 31, 2018, and for the remaining fourth of the PSUs is January 1, 2018 through December 31, 2020. The PSUs vest on December 31, 2020. Common Stock equal to not less than 40 percent and not more than 200 percent of the PSUs target will be awarded based on the Company’s return on invested capital, consolidated revenue growth, EPS and total return to shareholders relative to the companies in the Russell 2000® Value small cap index. The Company’s return on invested capital, consolidated revenue growth and EPS are adjusted for certain items as further described in the Performance Share Award Agreement. The market price on the date of grant for the PSUs was $93.21 per share.

For the three months ended March 31, 2018, the Company awarded 2,030 RSUs to certain employees. The weighted average grant date fair value of such awards was $80.15 per share and the awards vest one year from the date of grant. During the vesting period, the holders of the RSUs are entitled to dividends, but the RSUs do not have voting rights and are forfeited in the event the holder is no longer an employee on the vesting date.