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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2019
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
Note 9. Stock-Based Compensation

The Company has outstanding stock-based compensation awards granted under the 2013 Stock Incentive Plan (“2013 Plan”) and the 2017 Omnibus Incentive Plan (“2017 Plan”) as described in Note 16, “Stock-Based Compensation Plans” to the consolidated financial statements in its annual report on Form 10-K for the year ended December 31, 2018.

In the three and six month periods ended June 30, 2019, the Company recognized stock-based compensation expense of approximately $6.0 million and $13.6 million, respectively. The Company recognized stock-based compensation expense of approximately $1.8 million and $5.2 million for the three and six month periods ended June 30, 2018, respectively. These costs are included in “Other operating expense, net” in the Condensed Consolidated Statements of Operations.

The $13.6 million of stock-based compensation expense for the six month period ended June 30, 2019 included expense of $0.7 million for the modification of a former employee’s equity awards, expense for equity awards granted under the 2013 Plan and 2017 Plan of $5.0 million and an increase in the liability for stock appreciation rights (“SAR”) of $7.9 million. The $0.7 million stock-based compensation expense for the modification incurred in the six month period ended June 30, 2019 provided continued vesting through scheduled vesting dates for certain awards of a former employee.

As of June 30, 2019, there was $35.0 million of total unrecognized compensation expense related to outstanding stock options and restricted stock awards.

SARs, granted under the 2013 Plan are expected to be settled in cash and are accounted for as liability awards. As of June 30, 2019, a liability of approximately $11.2 million for SARs was included in “Accrued liabilities” in the Condensed Consolidated Balance Sheets.

Stock Option Awards

A summary of the Company’s stock option (including SARs) activity for the six month period ended June 30, 2019 is presented in the following table (underlying shares in thousands).


  
Shares
    
Weighted-Average
Exercise Price
(per share)
  
Outstanding as of December 31, 2018
    
12,352
    
$
10.93
  
Granted
    
1,070
    
$
27.05
  
Exercised or settled
    
(3,890
)
  
$
8.72
  
Forfeited
    
(90
)
  
$
30.42
  
Expired
    
(9
)
  
$
32.06
  
Outstanding as of  June 30, 2019
    
9,433
    
$
13.46
  
Vested as of  June 30, 2019
    
7,266
    
$
9.61
  

The following assumptions were used to estimate the fair value of options granted (excluding previously disclosed modified awards) during the six month periods ended June 30, 2019 and 2018 using the Black-Scholes option-pricing model.


  
For the Six Month
Period Ended
June 30,
2019
    
For the Six Month
Period Ended
June 30,
2018
  
Assumptions
            
Expected life of options (in years)
    
6.3
      
7.0 - 7.5
  
Risk-free interest rate
    
2.4 - 2.6
%
    
2.9 - 3.0
%
Assumed volatility
    
30.7 - 31.8
%
    
34.4 - 35.4
%
Expected dividend rate
    
0.0%
%
    
0.0%
%

Restricted Stock Unit Awards

A summary of the Company’s restricted stock unit activity for the six month period ended June 30, 2019 is presented in the following table (underlying shares in thousands).


  
Shares
    
Weighted-Average
Grant-Date
Fair Value
  
Non-vested as of December 31, 2018
    
362
    
$
31.78
  
Granted
    
418
    
$
27.05
  
Vested
    
(33
)
  
$
31.97
  
Forfeited
    
(38
)
  
$
31.56
  
Non-vested as of June 30, 2019
    
709
    
$
28.97