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Accounting for Stock Compensation
9 Months Ended
Sep. 30, 2018
Accounting For Stock Based Compensation [Abstract]  
Accounting for Stock Compensation

NOTE 11 – ACCOUNTING FOR STOCK COMPENSATION

On April 4, 2018, the Company’s board of directors approved the 2018 Omnibus Incentive Plan (the “2018 Omnibus Plan”), which was subsequently approved by the stockholders and became effective on May 31, 2018 (the “Effective Date”). The 2018 Omnibus Plan replaced the previous 2010 Omnibus Incentive Plan (the “Prior Plan”).

On or after the Effective Date, the 2018 Omnibus Plan allows the Company to grant 1,185,000 shares using stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance units and performance share awards (“PSAs”), cash-based awards, and other stock-based awards to all officers, key employees, and non-employee directors of the Company. Outstanding shares granted under the Prior Plan, totaling 599,811 as of September 30, 2018, will remain subject to its terms and conditions, and no additional awards from the Prior Plan are to be made after the Effective Date. As of September 30, 2018, the Company had approximately 1,138,609 shares available for grant under the 2018 Omnibus Plan. Cash-settled RSUs (“CSRSUs”) have no impact on the shares available for grant under the Omnibus Plan, nor on the calculated shares used in earnings per share (“EPS”) calculations.

During the nine months ended September 30, 2018, the Company granted to its employees 206,140 shares in the form of RSUs with an average grant date fair value of $64.30, and the equivalent value of 146,831 shares in the form of CSRSUs with an average grant date fair value of $60.82. During the nine months ended September 30, 2018, the Company also granted 45,136 shares in the form of PSAs to its employees with a grant date fair value of $60.65 per share. The RSUs, CSRSUs and PSAs granted are generally subject to service-based vesting conditions, with the PSAs also having performance-based vesting conditions. The performance conditions for the PSAs granted in 2018 have a performance period from January 1, 2018 through December 31, 2020 and the performance conditions are consistent with the PSAs granted in 2017.

The Company recognized stock-based compensation expense of $4.5 million and $5.2 million for the three months ended September 30, 2018 and 2017, respectively, and $14.7 million and $13.4 million for the nine months ended September 30, 2018 and 2017, respectively. Unrecognized compensation expense of approximately $14.9 million as of September 30, 2018 related to unsettled RSUs is expected to be recognized over a weighted-average period of 1.9 years. The unrecognized compensation expense related to CSRSUs totaled approximately $21.6 million at September 30, 2018 and is expected to be recognized over a weighted-average period of 1.7 years. Unrecognized compensation expense related to PSAs of approximately $4.0 million as of September 30, 2018 is expected to be recognized over a weighted-average period of 1.1 years.