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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018


	2016			2017
		Weighted			Weighted
		Average			Average
		Exercise			Exercise
	Options	Price		Options	Price
Outstanding, beginning of period	2,939,840	$	55.13	2,843,177	$	57.42
Granted	501,960		64.10	525,596		71.35
Forfeited	(104,680)		57.23	(79,350)		61.39
Exercised	(493,943)		50.60	(831,186)		53.79
Outstanding, end of period	2,843,177		57.42	2,458,237		61.50


	2018
				Weighted
				Average
		Weighted		Remaining	Aggregate
		Average		Contractual	Intrinsic
		Exercise		Term	Value
	Options	Price		(in years)	(in thousands)
Outstanding, beginning of period	2,458,237	$	61.50
Granted	477,956		96.39
Forfeited	(174,376)		80.21
Exercised	(409,208)		56.36
Outstanding, end of period	2,352,609	$	68.10	5.78	$	2,551
Vested and expected to vest at end of period	2,342,100	$	68.02	5.77	$	2,551
Exercisable, end of period	1,552,236	$	60.40	4.31	$	2,539

Schedule of weighted average assumptions used to determine weighted average grant date fair value


	2016		2017		2018
Risk-free interest rate	1.16	%	1.79	%	2.54	%
Expected life	4	years	4	years	4	years
Expected volatility	27.75	%	27.75	%	28.20	%
Expected dividend yield	0.00	%	0.00	%	0.00	%

Schedule of nonvested restricted stock award activity


	2016			2017			2018
		Weighted			Weighted			Weighted
		Average			Average			Average
		Grant Date			Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value
Outstanding, beginning of period	1,109,622	$	57.88	615,472	$	58.71	31,102	$	68.00
Awarded	77,744		65.52	14,959		70.20	11,795		89.05
Vested	(571,894)		58.03	(585,438)		58.33	(31,102)		68.00
Forfeited	—		—	(13,891)		65.97	—		—
Outstanding, ending of period	615,472		58.71	31,102		68.00	11,795		89.05

(1)

December 31, 2016 includes 60,069 shares associated with the AFSC acquisition.

Schedule of nonvested restricted stock units


	2016			2017			2018
		Weighted			Weighted			Weighted
		Average			Average			Average
		Grant Date			Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value
Outstanding, beginning of period	231,088	$	61.53	200,178	$	61.65	163,289	$	66.46
Awarded	51,521		64.87	107,417		68.53	111,033		99.29
Vested	(53,839)		63.32	(119,489)		60.38	(84,627)		65.20
Forfeited	(28,592)		63.34	(24,817)		65.87	(32,945)		84.17
Outstanding, ending of period	200,178		61.65	163,289		66.46	156,750		86.68

Summary of nonvested performance-based restricted stock units

Summarized information related to the Company’s nonvested PSUs for the years ended December 31, 2016, 2017 and 2018 is as follows:


	2016			2017			2018
		Weighted			Weighted			Weighted
		Average			Average			Average
		Grant Date			Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value
Outstanding, beginning of period	36,938	$	85.00	102,977	$	93.03	202,315	$	84.63
Awarded	69,691		97.22	101,989		76.24	80,502		141.61
Vested	—		—	—		—	(33,592)		85.00
Forfeited	(3,652)		91.89	(2,651)		87.75	(40,206)		100.96
Outstanding, end of period	102,977		93.03	202,315		84.63	209,019		103.38

Schedule of computation of basic and diluted earnings per share

The following table reconciles income (numerator) and shares (denominator) used in the Company’s computations of net income per share for the years ended December 31, 2016, 2017 and 2018 (in thousands, except per share data):


	2016		2017		2018
Numerator:
Net income attributable to Magellan	$	77,879	$	110,207	$	24,181
Denominator:
Weighted average number of common shares outstanding—basic		23,181		23,333		24,349
Common stock equivalents—stock options		289		530		493
Common stock equivalents—RSAs		593		376		15
Common stock equivalents—RSUs		45		64		37
Common stock equivalents—PSUs		45		134		137
Common stock equivalents—employee stock purchase plan		3		3		4
Weighted average number of common shares outstanding—diluted		24,156		24,440		25,035
Net income attributable to Magellan per common share—basic	$	3.36	$	4.72	$	0.99
Net income attributable to Magellan per common share—diluted	$	3.22	$	4.51	$	0.97

Schedule of stock repurchases made

Pursuant to this program, the Company made purchases as follows (aggregate cost excludes broker commissions and is reflected in millions):


	Total Number	Average
	of Shares	Price Paid		Aggregate
Period	Purchased	per Share		Cost
October 26, 2015 - December 31, 2015	345,044	$	53.46	$	18.4
January 1, 2016 - December 31, 2016	1,828,183		58.40		106.8
January 1, 2017 - December 31, 2017	280,140		77.67		21.8
January 1, 2018 - December 31, 2018	844,872		74.59		63.0
	3,298,239			$	210.0