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Share-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 3.3 million shares that could be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards, in addition to the shares from the previous plan, the 1992 Plan. Since inception of the LTIP, non-qualified stock options and restricted stock awards have been granted with a five year vesting schedule. Under the LTIP, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant.

On May 24, 2016, our stockholders adopted the 2016 Long-Term Incentive Plan (“2016 Plan”) which provides for approximately 6.4 million shares, comprised of 3.4 million new shares provided for under the 2016 Plan, approximately 0.4 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, and an additional 2.6 million shares that were approved by the stockholders on May 15, 2018. Under the 2016 Plan, shares can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance awards, dividend equivalent rights, and other awards. Under the 2016 Plan, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The 2016 Plan is administered by the Compensation Committee of the Board of Directors or such other committee of the Board of Directors as is designated by the Board of Directors (the “Committee”). Membership on the Committee is limited to independent directors. The Committee may delegate certain duties to one or more officers of the Company as provided in the 2016 Plan. The Committee determines the persons to whom awards are to be made, determines the type, size and terms of awards, interprets the 2016 Plan, establishes and revises rules and regulations relating to the 2016 Plan and makes any other determinations that it believes necessary for the administration of the 2016 Plan.
The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during December 31, 2019, 2018, and 2017 using a Black Scholes-Merton Model:
 
 201920182017
Director and Officers:   
Expected dividend yield$0.32  $0.26  $0.26  
Expected volatility29.54 %29.73 %30.81 %
Risk-free interest rate2.40 %2.20 %1.90 %
Expected life (in years)5.005.005.00
Employees:
Expected dividend yield$0.32  $0.26  $0.26  
Expected volatility29.54 %29.82 %30.67 %
Risk-free interest rate2.38 %2.51 %1.89 %
Expected life (in years)5.005.005.00

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date.

The following is a summary of stock options vested and exercisable as of December 31, 2019:
 
Weighted
Average
Weighted
Range ofNumberRemainingAverage 
ExerciseofContractualExerciseIntrinsic
PricesSharesLifePriceValue
    (in thousands)
$7.18 - 34.10
451,077  5.44$23.47  $11,702  
$34.15 - 40.87
86,122  7.8236.33  1,126  
$41.37 - 50.68
1,750  1.8141.59  14  
Total538,949  5.81$25.58  $12,842  
 
The following is a summary of stock options vested and exercisable as of December 31, 2018:
 
Weighted
Average
Weighted
Range ofNumberRemainingAverage 
ExerciseofContractualExerciseIntrinsic
PricesSharesLifePriceValue
    (in thousands)
$5.67 - 32.80
456,223  5.72$20.25  $6,757  
$32.85 - 34.10
42,552  7.4733.95  47  
$34.15 - 42.94
17,202  8.3035.19  7  
Total515,977  5.95$21.88  $6,811  
The following is a summary of stock options vested and exercisable as of December 31, 2017:
 
Weighted
Average
Weighted
Range ofNumberRemainingAverage 
ExerciseofContractualExerciseIntrinsic
PricesSharesLifePriceValue
    (in thousands)
$4.54 - 22.76
424,130  4.36$12.41  $10,303  
$23.57 - 32.85
107,456  8.3130.10  709  
$32.90 - 37.30
25,725  9.1934.07  68  
Total557,311  5.35$16.82  $11,080  
 
A summary of option activity under the plans is as follows:
Weighted
Average
Exercise
OptionsSharesPrice
Outstanding at December 31, 20182,445,849  $30.77  
Granted1,975,820  41.50  
Exercised(444,389) 28.40  
Forfeited or Expired(350,233) 36.78  
Outstanding at December 31, 20193,627,047  $36.32  
Exercisable at December 31, 2019538,949  $25.58  
 
The total pre-tax compensation cost related to unvested stock options not yet recognized as of December 31, 2019 is $19.4 million and is expected to be recognized over a weighted-average period of 3.58 years.

The total intrinsic value of options exercised during the years ended December 31, 2019, 2018, and 2017 was $8.1 million, $5.4 million, and $4.5 million, respectively. The cash received from options exercised during the year ended December 31, 2019, 2018, and 2017 was $12.6 million, $5.0 million, and $2.3 million, respectively. The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows.

A summary of the unvested restricted stock awards is as follows:
Weighted
Average
Grant date
Restricted stockSharesFair Value
Unvested at December 31, 2018292,450  $28.54  
Granted113,018  40.98  
Vested(122,278) 26.38  
Forfeited(15,706) 34.71  
Unvested at December 31, 2019267,484  $34.42  

At December 31, 2019, unrecognized compensation cost related to unvested restricted stock awards was approximately $4.6 million which is expected to be recognized over a weighted average period of 2.64 years.
A summary of share-based compensation is as follows for the years ended December 31, 2019, 2018, and 2017:
 
 201920182017
Grant date fair value of awards during the period:(in thousands)
Options$20,442  $12,932  $3,699  
Restricted stock4,631  3,609  4,217  
     Total$25,073  $16,541  $7,916  
 
201920182017
Share-based compensation expense:(in thousands) 
Options$9,145  $5,344  $3,095  
Restricted stock2,654  2,518  3,218  
     Total$11,799  $7,862  $6,313  
 
201920182017
Income tax benefit related to share-based compensation:(in thousands) 
Options$1,197  $980  $1,413  
Restricted stock575  353  1,051  
     Total$1,772  $1,333  $2,464