Stock Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

The Company maintains two shareholder-approved Company Stock Incentive Plans allowing for the grant of equity based incentive compensation to essentially all employees. The 2005 Plan authorized grants of up to 2,880,000 shares over a ten-year period beginning in 2005. The term of the 2005 Plan expired in February 2014; outstanding awards will continue to vest and options may continue to be exercised, but no additional awards will be granted under the 2005 Plan. The 2014 Plan authorizes grants of up to an additional 3,000,000 shares over a ten-year period beginning in 2014. Under these Plans, grants may take the form of stock awards, awards of options to acquire stock, stock appreciation rights, and other forms of equity based compensation; both options to acquire stock and stock awards were granted.

The fair value of each option award is estimated on the grant date using the Black-Scholes option valuation model, based on several assumptions including the risk-free interest rate, volatility, expected dividend yield and expected term.

The fair value of each restricted stock unit award is calculated using the share price at the date of grant. Restricted stock units generally have service requirements only or performance and service requirements with vesting periods ranging from one to four years. Employees and directors who are granted restricted stock units are not required to pay for the shares but generally must remain employed with the Company, or continue to serve as a member of the Company’s board of directors, until the restrictions lapse, which is typically four years for employees and one year for directors.

The cost of employee services received in exchange for share-based awards classified as equity is measured using the estimated fair value of the award on the date of the grant, and the related expense is recorded using the straight-line method consistent with the recipient's respective service period.

Stock-based compensation expense was as follows:



	Years Ended December 31,
(in thousands)	2019		2018		2017
Stock compensation expense	$	4,182	$	5,367	$	4,184
Capitalized stock compensation	365		408		604
Stock compensation expense, net	$	3,817	$	4,959	$	3,580

As of December 31, 2019 and 2018, there was $3.7 million and $2.7 million, respectively, of total unrecognized compensation cost related to non-vested incentive awards that are expected to be recognized over a weighted average period of 2.4 years.

We utilize the treasury stock method to calculate the impact on diluted earnings per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings per share:



	Years Ended December 31,
(in thousands, except per share amounts)	2019		2018		2017
Calculation of net income per share:
Net income	$	54,935	$	46,595	$	66,390
Basic weighted average shares outstanding	49,811		49,542		49,150
Basic net income per share	$	1.10	$	0.94	$	1.35

Effect of stock-based compensation awards outstanding:
Basic weighted average shares outstanding	49,811		49,542		49,150
Effect from dilutive shares and options outstanding	290		521		876
Diluted weighted average shares outstanding	50,101		50,063		50,026
Diluted net income per share	$	1.10	$	0.93	$	1.33

There were fewer than 110 thousand anti-dilutive awards outstanding during 2019, 2018, and 2017.