Stock Compensation Plan

3 Months Ended

Mar. 31, 2019

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

Stock Options and Stock Appreciation Rights ("Options")

The following table presents information regarding Options awarded during the three months ended March 31, 2019:



Options granted	1,338
Per share weighted average exercise price	$	69.20
Per share weighted average grant date fair value	$	11.50

The weighted-average grant date fair value for Options granted during the three months ended March 31, 2019 was estimated using the Black-Scholes option valuation model with the following assumptions:



Expected term in years	5.0
Risk free interest rate	2.6	%
Volatility	22.9	%
Dividend yield	3.0	%

The following table presents information regarding Options that vested during the three months ended March 31, 2019:



Options vested	104,577
Aggregate grant date fair value of Options vested (in millions)	$	1.5

The following table presents information regarding outstanding Options:



	March 31, 2019		December 31, 2018
Options outstanding	437,539		451,081
Aggregate intrinsic value (in millions)	$	3.3	$	2.7
Per share weighted average exercise price	$	68.81	$	67.46
Exercisable Options	333,235		240,903
Aggregate intrinsic value (in millions)	$	3.3	$	2.6
Unvested Options	104,304		210,178
Per share weighted average grant date fair value	$	14.43	$	14.21

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

For the three months ended March 31, 2019, the Company granted target awards of 47,412 PSUs. The measurement period for three fourths of the PSUs is January 1, 2019 through December 31, 2019, and for the remaining fourth of the PSUs is January 1, 2019 through December 31, 2021. The PSUs vest on December 31, 2021. Common Stock equal to not less than 0 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 $69.20 per share.

For the three months ended March 31, 2019, the Company awarded 35,374 RSUs to certain employees. The weighted average grant date fair value of such awards was $69.20 per share and the one third of the shares will vest on each of the first three anniversaries of the grant date, with certain exceptions for retiring employees. 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.