Capital Stock

9 Months Ended

Sep. 30, 2020

Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting stock which is callable at $52.50. There are 71,340 shares issued and 52,998 shares held in treasury at September 30, 2020. The Treasury shares at cost line on the unaudited Condensed Consolidated Balance Sheet includes $1.8 million related to preferred stock. There were treasury purchases of 120 preferred stock shares during the nine months ended September 30, 2020. There were no treasury purchases of preferred stock during the nine months ended September 30, 2019. The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting stock. No shares have been issued as of September 30, 2020.

Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were 62,081,391 shares issued as of December 31, 2019. No new shares were issued during the nine months ended September 30, 2020, or 2019. There were 38,950,467 and 38,841,194 shares outstanding at September 30, 2020, and December 31, 2019, respectively.

Treasury Shares - The Company's share repurchase program authorizes up to $100.0 million to repurchase MSA common stock in the open market and in private transactions. The share repurchase program has no expiration date. The maximum number of shares that may be repurchased is calculated based on the dollars remaining under the program and the respective month-end closing share price. During the nine months ended September 30, 2020, 175,000 shares were repurchased under this program and all of the repurchases occurred during the first quarter. During the nine months ended September 30, 2019, 33,465 shares were repurchased under the program. There were 23,130,924 and 23,240,197 Treasury Shares at September 30, 2020, and December 31, 2019, respectively.

The Company issues Treasury Shares for all stock-based compensation plans. Shares are issued from Treasury at the average Treasury Share cost on the date of the transaction. There were 66,893 and 320,718 Treasury Shares issued for these purposes during the nine months ended September 30, 2020 and 2019, respectively.

Common stock activity is summarized as follows:


	Three Months Ended September 30, 2020				Three Months Ended September 30, 2019
(In thousands)	Common Stock		Treasury Cost		Common Stock		Treasury Cost
Balance at beginning of period	$	233,786	$	(327,997)	$	218,801	$	(303,744)
Stock compensation expense	(1,309)		—		4,044		—
Restricted and performance stock awards	(50)		50		(70)		70
Stock options exercised	2,276		954		637		292
Treasury shares purchased	—		(439)		—		(118)



Balance at end of period	$	234,703	$	(327,432)	$	223,412	$	(303,500)


	Nine Months Ended September 30, 2020				Nine Months Ended September 30, 2019
(In thousands)	Common Stock		Treasury Cost		Common Stock		Treasury Cost
Balance at beginning of period	$	229,127	$	(303,566)	$	211,806	$	(296,390)
Stock compensation expense	3,042		—		10,130		—
Restricted and performance stock awards	(2,513)		2,513		(2,713)		2,713
Stock options exercised	4,709		2,260		2,967		1,194
Treasury shares purchased	—		(8,578)		—		(7,713)
Stock consideration in acquisition	—		—		921		—
Employee stock purchase program	338		52		301		43
Share repurchase program	—		(20,113)		—		(3,347)
Balance at end of period	$	234,703	$	(327,432)	$	223,412	$	(303,500)