XML 22 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Stock Compensation Plans
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Stock compensation plans Stock compensation plans

We maintain a stock award plan for both employees and non-employee directors. The plan provides for the grant of a variety of equity awards, including options (generally non-qualified options), restricted shares, restricted share units ("RSUs"), and performance shares to key employees (as determined by the Compensation and Management Development Committee of the Board of Directors) for periods not to exceed ten years. Non-employee directors are awarded an annual distribution of common shares. Options granted to employees generally vest incrementally over four years and are generally exercisable for ten years from the vest date. Shares issued upon the exercise of a stock option are from newly issued shares. RSUs represent the right to receive an equal number of common shares and are converted into common shares upon distribution. RSUs generally cliff vest after three years. RSU holders receive cash dividends during the vesting period. Performance shares vest upon attainment of the stated performance targets and minimum service requirements and are converted into common shares upon distribution. As of December 31, 2019, there were 23.6 million shares that remained available for grant under the plan. Our stock compensation expense for the three years ended December 31, 2019, is presented below ($000's omitted):
 
2019
 
2018
 
2017
RSUs and performance shares
$
21,538

 
$
20,145

 
$
24,207

Long-term incentive plans
6,830

 
8,145

 
9,476

 
$
28,368

 
$
28,290

 
$
33,683





Stock options

A summary of stock option activity for the three years ended December 31, 2019, is presented below (000’s omitted, except per share data):
 
2019
 
2018
 
2017
 
Shares
 
Weighted-
Average
Per Share
Exercise Price
 
Shares
 
Weighted-
Average
Per Share
Exercise Price
 
Shares
 
Weighted-
Average
Per Share
Exercise Price
Outstanding, beginning of year
563

 
$
12

 
1,168

 
$
11

 
3,623

 
$
12

Granted
—

 
—

 
—

 
—

 
—

 
—

Exercised
(547
)
 
12

 
(605
)
 
11

 
(2,353
)
 
12

Forfeited
—

 
—

 
—

 
—

 
(102
)
 
28

Outstanding, end of year
16

 
$
8

 
563

 
$
12

 
1,168

 
$
11

Options exercisable at year end
16

 
$
8

 
563

 
$
12

 
1,168

 
$
11



We did not issue any stock options during 2019, 2018, or 2017. As a result, there is no unrecognized compensation cost related to stock option awards at December 31, 2019. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The aggregate intrinsic value of stock options that were exercised during 2019, 2018, and 2017 was $10.5 million, $11.7 million, and $31.1 million, respectively. As of December 31, 2019, options outstanding, all of which were exercisable, had an intrinsic value of $0.5 million and an exercise price of $8.

Restricted shares (including RSUs and performance shares)

A summary of restricted share activity, including RSUs and performance shares, for the three years ended December 31, 2019, is presented below (000’s omitted, except per share data):
 
 
2019
 
2018
 
2017
 
Shares
 
Weighted-
Average
Per Share
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Per Share
Grant Date
Fair Value
 
Shares
 
Weighted-
Average
Per Share
Grant Date
Fair Value
Outstanding, beginning of
       year
3,074

 
$
23

 
3,271

 
$
19

 
2,974

 
$
19

Granted
932

 
27

 
833

 
31

 
1,251

 
21

Distributed
(1,181
)
 
17

 
(786
)
 
22

 
(775
)
 
19

Forfeited
(144
)
 
26

 
(244
)
 
22

 
(179
)
 
19

Outstanding, end of year
2,681

 
$
26

 
3,074

 
$
23

 
3,271

 
$
19

Vested, end of year
153

 
$
20

 
129

 
$
21

 
152

 
$
17



During 2019, 2018, and 2017, the total fair value of shares vested during the year was $20.0 million, $17.1 million, and $15.0 million, respectively. Unamortized compensation cost related to restricted share awards was $19.7 million at December 31, 2019. These costs will be expensed over a weighted-average period of approximately 2 years. Additionally, there were 0.2 million RSUs outstanding at December 31, 2019, that had vested but had not yet been paid out because the payout date had been deferred by the holders.

Long-term incentive plans

We maintain long-term incentive plans for senior management and other employees that provide awards based on the achievement of stated performance targets over three-year periods. Awards are stated in dollars but are settled in common shares based on the stock price at the end of the performance period. If the share price falls below a floor of $5.00 per share at the end of the performance period or we do not have a sufficient number of shares available under our stock incentive plans at the time of settlement, then a portion of each award will be paid in cash. We adjust the liabilities and recognize the expense associated with the awards based on the probability of achieving the stated performance targets at each reporting period. Liabilities for these awards totaled $15.0 million and $17.0 million at December 31, 2019 and 2018, respectively.