Share-Based Compensation

3 Months Ended

Mar. 31, 2018

14.	Share-Based Compensation

The Company has a long-term equity incentive plan, which allows for grants of restricted stock, performance awards, stock appreciation rights, and stock options to directors, officers, and employees, as well as others who engage in services for PCA. The plan, as amended, terminates May 1, 2023 and authorizes 10.6 million shares of common stock for grant over the life of the plan. As of March 31, 2018, 1.0 million shares were available for future grants under the plan. Forfeitures are added back to the pool of shares of common stock available to be granted at a future date.

The following table presents restricted stock and performance unit award activity for the three months ended March 31, 2018:

	Restricted Stock					Performance Units
	Shares			Weighted Average Grant- Date Fair Value		Shares		Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2018		739,732		$	77.23		226,558	$	77.07
Granted		—			—		—		—
Vested		(3,194	)		74.23		—		—
Forfeitures		(1,182	)		78.05		—		—
Outstanding at March 31, 2018		735,356		$	77.24		226,558	$	77.07

Compensation Expense

Our share-based compensation expense is recorded in "Selling, general, and administrative expenses." Compensation expense for share-based awards recognized in the Consolidated Statements of Income, net of forfeitures, was as follows (dollars in millions):

	Three Months Ended March 31,
	2018			2017
Restricted stock	$	3.9		$	3.4
Performance units		1.2			1.2
Total share-based compensation expense		5.1			4.6
Income tax benefit		(1.3	)		(1.8	)
Share-based compensation expense, net of tax benefit	$	3.8		$	2.8

The fair value of restricted stock and performance units is determined based on the closing price of the Company’s common stock on the grant date. As PCA’s Board of Directors has the ability to accelerate vesting of share-based awards upon an employee’s retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age.

The unrecognized compensation expense for all share-based awards at March 31, 2018 was as follows (dollars in millions):

	March 31, 2018
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	26.7	2.3
Performance units		8.7		2.6
Total unrecognized share-based compensation expense	$	35.4		2.4