NOTE 12: STOCK-BASED COMPENSATION

On May 5, 2016, the 2016 Incentive Compensation Plan (the “Incentive Compensation Plan”) and the Stock Compensation Plan for Non-Employee Directors (the “Directors Plan” and, together with the Incentive Compensation Plan, the “2016 Equity Plans”) were approved by the Company’s shareholders for the purpose of granting stock awards to officers, employees and Board members of the Company and its subsidiaries, as further described in Note 16 to the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2017. There are 5,100,000 shares of Class A Common Stock authorized for issuance under the Incentive Compensation Plan and 200,000 shares of Class A Common Stock authorized for issuance under the Directors Plan, of which 2,538,710 shares and 168,215 shares, respectively, were available for grant as of June 30, 2018.

Stock-based compensation for the three months ended June 30, 2018 and June 30, 2017 totaled $5 million and $7 million, respectively. Stock-based compensation for the six months ended June 30, 2018 and June 30, 2017 totaled $11 million and $22 million, respectively. There was no stock-based compensation expense recorded for the six months ended June 30, 2018 attributable to discontinued operations. Stock-based compensation expense attributable to discontinued operations for the six months ended June 30, 2017 totaled $2 million.

A summary of activity and weighted average exercise prices related to the NSOs is reflected in the table below.



	Six Months Ended June 30, 2018
	Shares		Weighted Avg. Exercise Price
Outstanding, beginning of period	2,846,926		$	39.00
Granted	201,580		42.85
Exercised	(20,643	)	28.14
Forfeited	(7,224	)	30.66
Cancelled	(494,069	)	54.57
Outstanding, end of period	2,526,570		$	36.37
Vested and exercisable, end of period	1,200,643		$	40.48

A summary of activity and weighted average fair values related to the RSUs is reflected in the table below.



	Six Months Ended June 30, 2018
	Shares		Weighted Avg. Fair Value
Outstanding, beginning of period	1,104,792		$	32.62
Granted	447,539		41.78
Dividend equivalent units granted	15,229		38.31
Vested	(356,092	)	35.09
Dividend equivalent units vested	(17,481	)	36.04
Forfeited	(26,515	)	33.26
Dividend equivalent units forfeited	(969	)	37.25
Outstanding and nonvested, end of period	1,166,503		$	35.37

A summary of activity and weighted average fair values related to the restricted stock awards is as follows:

A summary of activity and weighted average fair values related to the PSUs and Supplemental PSUs is reflected in the table below.



	Six Months Ended June 30, 2018
	Shares		Weighted Avg. Fair Value
Outstanding, beginning of period	252,815		$	22.53
Granted (1)	54,059		42.40
Dividend equivalent units granted	2,189		38.28
Vested	(36,920	)	38.67
Dividend equivalent units vested	(2,680	)	35.20
Forfeited	(139,628	)	13.25
Dividend equivalent units forfeited	(231	)	35.24
Outstanding and nonvested, end of period	129,604		$	36.20


(1)	Represents shares of PSUs for which performance targets have been established and which are deemed granted under U.S. GAAP.

As of June 30, 2018, the Company had not yet recognized compensation cost on nonvested awards as follows (dollars in thousands):



	Unrecognized Compensation Cost		Weighted Average Remaining Recognition Period
Nonvested awards	$	45,475	2.5

Six Months Ended
June 30, 2018

Weighted Avg.
Fair Value

Outstanding, beginning of period

Outstanding and nonvested, end of period