Stock Compensation Plans

We reserved 5.0 million shares for issuance to key management personnel and directors under the 2011 amended and restated long-term incentive and equity award plan. As of December 31, 2015, 2.9 million shares remain available for future issuance under this plan. The plan permits the issuance of restricted stock and stock units, as well as options, stock appreciation rights, and performance stock and performance stock unit awards. Awards under the plan can be satisfied in cash or shares at the discretion of the Board of Directors. According to the plan provisions, the stock units provide the holders the right to receive one share of our Common Stock upon vesting (and distribution) of one stock unit. The plan requires the exercise price of any option granted to equal the closing market price of our Common Stock on the date of grant.

Stock Options

On March 1, 2010, we formalized the Second Union Employee Option Plan that provided for a grant of up to 31,000 options, including the effect of the reverse stock split, to purchase our Common Stock at an exercise price equal to $3,600.00 per share, of which all have been granted. As a part of the union wage reduction, we agreed to award a certain equity interest to all effected union employees. These options vested immediately, will expire 10 years from the grant date, and were exercisable upon shareholder approval, which was received on June 29, 2010, at our annual shareholder meeting. There has been no activity in these stock options and these options had no intrinsic value as of December 31, 2015, 2014, and 2013.

Performance Based Awards

On March 9, 2015, the Company granted performance stock unit awards (“2015 Performance Awards”) to employees under its 2015 long-term incentive plan (“2015 LTIP”). The awards provide a target number of stock units that vest equally over three years, with the first vesting occurring in February 2016. In addition to meeting service conditions, the number of performance stock units to be received depends on the attainment of defined Company-wide performance goals for 2015 based on adjusted return on invested capital over a one year performance period.

A summary of performance based unvested stock unit activity at target is as follows:



(stock units in thousands)	Number of Units, at Target		Weighted Average Fair Value
Unvested performance stock unit awards, at December 31, 2014	—		—
2015 Performance Awards granted	218		$	18.09
2015 Performance Awards forfeited	(3	)	18.23
Unvested performance stock unit awards, at December 31, 2015	215		$	18.09

The total number of performance stock units earned for the 2015 performance year was 196% of the target award, resulting in a total of 421 thousand units issued under the 2015 LTIP.

The Company expenses the grant date fair value of the awards earned in the performance period over the respective service periods. The intrinsic value of unvested shares as of December 31, 2015 was $6.0 million. For the year ended December 31, 2015, the Company recognized compensation expense of $3.9 million. Unrecognized compensation expense related to performance based awards of $3.7 million is expected to be recognized over a weighted-average period of 0.8 years.

Restricted Stock

A summary of the activity of our unvested restricted stock and stock unit awards are presented in the following table:



	Shares/units (in thousands)		Weighted Average Grant-Date Fair Value
Unvested at December 31, 2012	846		11.47
Granted	510		$	6.24
Vested and distributed	(405	)	10.27
Forfeited	(118	)	10.54
Unvested at December 31, 2013	833		$	8.96
Granted	1,046		15.83
Vested and distributed	(564	)	13.33
Forfeited	(26	)	15.38
Unvested at December 31, 2014	1,289		$	12.86
Granted	342		17.29
Vested and distributed	(835	)	11.34
Forfeited	(29	)	10.25
Unvested at December 31, 2015	767		$	14.34

Certain of the directors have deferred receipt of the Common Stock underlying some or all of the restricted stock units they have been awarded until each such director ceases to serve on the Board or, under certain circumstances, upon a change of control. Thus, while some of these restricted stock units have vested, the directors have not yet received the underlying Common Stock. For the years ended December 31, 2015, 2014, and 2013, the total number of restricted stock units that are vested but for which the underlying Common Stock has not been distributed was 275,000, 221,000, and 175,000, respectively; these shares are shown as unvested in the above table.

The intrinsic value of unvested shares as of December 31, 2015 was $10.9 million. The Company records expense on a straight-line basis over the vesting term. For the years ended December 31, 2015, 2014 and 2013, the Company recorded compensation expense for restricted stock awards of $4.8 million, $14.4 million, and $5.8 million, respectively. Unrecognized compensation expense related to restricted stock awards of $4.6 million at December 31, 2015 is expected to be recognized over a weighted-average period of 1.0 year.

The vesting provisions for the restricted stock and stock unit awards and the related number of shares granted during the year ended December 31 are as follows:



	Shares/units (in thousands)
Vesting Terms	2015	2014	2013
50% immediately and 50% on the 1 year anniversary of the grant date	—	456	187
50% on the 1 year anniversary of the grant date and 50% on the 2 year anniversary of the grant date	—	—	150
25% per year for four years	4	39	56
25% immediately and 25% on each employment anniversary thereafter	—	—	18
100% immediately	69	54	5
33.3% immediately and 33.3% per year thereafter on the anniversary of the grant date	—	—	94
20% on February 28, 2015, 60% on July 31, 2015 and 20% on February 28, 2016	—	459	—
33.3% per year for three years	269	38	—
Total restricted stock and stock units granted	342	1,046	510

The fair value of nonvested shares is determined based on the closing trading price of our shares on the grant date. The fair value of shares vested and distributed during the years ended December 31, 2015 and 2014 was $9.5 million and $7.2 million, respectively. The fair value of shares vested during the year ended December 31, 2013 was not significant.

The outstanding awards under our stock compensation plans provide dividend participation features and are considered participating securities in our earnings per share calculation.