Stock-Based Compensation (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2019 and 2018 are as follows:

	Nine Months Ended September 30,
	2019		2018
	(in thousands)
Stock options	$	1,970	$	2,231
Restricted stock and restricted stock units	2,980		1,943
Employee Stock Purchase Plan	518		432
Total pre-tax stock-based compensation expense charged against income 1	$	5,468	$	4,606

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 nine months ended September 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	(127)	$	24.44
Forfeited	(20)	$	36.50
Expired	(13)	$	31.00
September 30, 2019	2,149	$	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:

	Nine Months Ended September 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 September 30, 2019:

	September 30, 2019
	(amounts in thousands, except per share data)
Outstanding:
Aggregate intrinsic value	$	2,449
Weighted average remaining contractual life	5.6 years
Exercisable:
Number of options	1,295
Weighted average exercise price	$	28.09
Aggregate intrinsic value	$	2,448
Weighted average remaining contractual life	4.4 years

Summary of Outstanding Restricted Stock Units and Restricted Stock

A summary of the outstanding restricted stock units and restricted stock as of December 31, 2018 and changes during the nine months ended September 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	(61)	$	43.04
Forfeited	(10)	$	44.62
September 30, 2019	364	$	43.25

Options Granted Estimated Expense Valuation Assumptions

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

	Nine Months Ended September 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 nine months ended September 30, 2019 and 2018:

	Nine Months Ended September 30,
	2019		2018
	(in thousands)
SERP expense 1	$	497	$	490
Unrealized gain recorded in SERP liability account	$	4,964	$	2,692

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