Stock-Based Compensation

The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees to be recognized in the income statement based on their grant date fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period.

A summary of restricted share and performance share activity for the year ended December 31, 2019 is as follows:



	Time-Based				Performance-Based
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
	(in whole shares)				(in whole shares)
Outstanding — beginning of year	529,947		$	35.98	—	$	—
Granted^(a)	268,948		32.01		50,000	32.55
Vested	(212,261	)	37.68		—	—
Canceled or expired	(115,000	)	39.35		—	—
Outstanding — end of year	471,634		$	32.06	50,000	$	32.55

(a) Included in the granted amount are 2,825 restricted share units.

The Company recognized compensation expense of $4.1 million, $8.3 million and $8.6 million for the years ended December 31, 2019, 2018 and 2017, respectively, relating to time-based awards and performance-based awards. The amount in 2019 is net of $1.7 million of forfeitures related to the departure of our former President.

The performance-based award in 2019 relates to a five-year cumulative profit target through 2023. Through December 31, 2019, no compensation expense was recognized as achievement of the performance target is deemed not probable.

The total fair value of restricted shares and share units that vested during the years ended December 31, 2019, 2018 and 2017 was $8.0 million, $8.3 million and $7.0 million, respectively.

As of December 31, 2019, the Company had unrecognized compensation expense of $8.6 million related to restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of 2.3 years.