Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

The components of the Company’s stock-based compensation expense for the six months ended June 30, 2019 and 2018 are as follows:

	Six Months Ended June 30,
	2019		2018
	(in thousands)
Stock options	$	1,326	$	1,514
Restricted stock and restricted stock units	1,998		1,292
Employee Stock Purchase Plan	335		289
Total pre-tax stock-based compensation expense charged against income 1	$	3,659	$	3,095

1.Stock-based compensation expense is recorded in cost of services and selling, general and administrative expense in the Company’s Consolidated Statements of Comprehensive Income.

Summary of Other Information of Stock Option Plans

A summary of stock options outstanding under the Plan as of December 31, 2018 and changes during the six months ended June 30, 2019 is as follows:

	Stock Options Outstanding
	Number of Shares	Weighted Average Exercise Price
	(in thousands)
December 31, 2018	2,121	$	31.53
Granted	188	$	40.49
Exercised	(123)	$	24.70
Forfeited	(10)	$	36.38
Expired	(7)	$	27.33
June 30, 2019	2,169	$	32.69

Assumption For Fair Value of Options Granted

The fair value of stock option awards granted in 2019 and 2018 was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions:

	Six Months Ended June 30,
	2019		2018
Risk-free interest rate	2.5	%	2.1	%
Weighted average expected life	5.7 years		5.8 years
Expected volatility	22.6	%	21.4	%
Dividend yield	1.9	%	1.5	%

Summarized Information of Stock Options Outstanding

The following table summarizes other information about the stock options at June 30, 2019:

	June 30, 2019
	(amounts in thousands, except per share data)
Outstanding:
Aggregate intrinsic value	$	5,846
Weighted average remaining contractual life	5.9 years
Exercisable:
Number of options	1,305
Weighted average exercise price	$	28.09
Aggregate intrinsic value	$	5,844
Weighted average remaining contractual life	4.7 years

Summary of Stock Options Outstanding

A summary of the outstanding restricted stock units and restricted stock as of December 31, 2018 and changes during the six months ended June 30, 2019 is as follows:

	Restricted Stock Units and Restricted Stock
	Number	Weighted Average Grant Date Fair Value
	(in thousands)
December 31, 2018	241	$	45.47
Granted	194	$	40.49
Vested	(60)	$	42.91
Forfeited	(4)	$	45.69
June 30, 2019	371	$	43.28

Weighted Average Grant-Date Fair Values and Intrinsic Values of Options Vested

The expense associated with the options granted under the ESPP during the six months ended June 30, 2019 and 2018 was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions:

	Six Months Ended June 30,
	2019	2018
Risk-free interest rate	2.57%	1.89%
Weighted average expected life (years)	1.0	1.0
Expected volatility	30.8%	20.8%
Dividend yield	1.9%	1.4%

Summary of ESPP Annual Offerings

The following table summarizes information about the SERP during the six months ended June 30, 2019 and 2018:

	Six Months Ended June 30,
	2019		2018
	(in thousands)
SERP expense 1	$	346	$	328
Unrealized gain recorded in SERP liability account	$	4,939	$	1,118

1.Both the SERP match and the deferrals are included in the selling, general and administrative caption in the Consolidated Statements of Comprehensive Income.