Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2019

Stock-Based Compensation Plans

Stock-Based Compensation Plans

Note 12. Stock-Based Compensation Plans

We grant stock-based compensation to our employees and directors. At December 31, 2019, an aggregate of 1,125,344 shares were authorized for future grant under our various stock-based compensation plans, including stock options, restricted stock units and stock awards. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. As stock options are exercised and restricted stock units vest, we issue new shares of Reliance common stock.

Stock Options

Stock option activity under all the plans is as follows:

				Weighted Average
				Remaining	Aggregate
	Option	Weighted Average		Contractual Term	Intrinsic Value
Stock Options	Shares	Exercise Price		(in years)	(in millions)
Outstanding at January 1, 2017	180,680	$	52.61
Exercised	(98,405)		52.41
Expired or forfeited	(7,000)		58.68
Outstanding at December 31, 2017	75,275		52.30
Exercised	(48,275)		57.91
Expired or forfeited	(1,000)		55.73
Outstanding at December 31, 2018	26,000		41.76
Exercised	(20,000)		40.80
Outstanding at December 31, 2019	6,000	$	44.99	0.4	$	0.4
Exercisable at December 31, 2019	6,000	$	44.99	0.4	$	0.4

All stock options outstanding at December 31, 2019 were granted to our non-employee directors and had one-year vesting periods and ten-year terms.

There were no unvested stock options at December 31, 2019 and 2018.

Proceeds from stock options exercised under all stock option plans in 2019, 2018 and 2017 were $0.8 million, $2.8 million and $5.2 million, respectively. The total intrinsic values of all options exercised in 2019, 2018 and 2017 were $1.0 million, $1.6 million and $2.8 million, respectively.

The following tabulation summarizes certain information concerning outstanding and exercisable options as of December 31, 2019:

		Weighted Average
	Outstanding and	Remaining	Weighted Average
Range of	Exercisable at	Contractual Term	Exercise Price
Exercise Price	December 31, 2019	(in years)	Per Share
$44 - $45	6,000	0.4	$	44.99

Restricted Stock

In 2019, 2018 and 2017, we granted 488,345, 474,715 and 446,525, respectively, restricted stock units (“RSUs”) to key employees pursuant to the Amended and Restated Stock Option and Restricted Stock Plan. Each RSU consists of the right to receive one share of our common stock and dividend equivalent rights, subject to forfeiture, equal to the accrued cash or stock dividends where the record date for such dividends is after the grant date but before the shares vest. Additionally, each 2019, 2018 and 2017 RSU granted has a service-based condition and cliff vests at December 1, 2021,

December 1, 2020 and December 1, 2019, respectively, if the recipient is an employee on those dates. In addition to a service-based condition, 194,155, 178,970 and 169,009 of the RSUs granted in 2019, 2018 and 2017, respectively, also have performance goals and vest only upon the satisfaction of the service-based condition and certain performance targets for the three-year periods ending December 31, 2021, December 31, 2020 and December 31, 2019, respectively. The fair value of the 2019, 2018 and 2017 RSUs granted was $88.05 per share, $84.26 per share and $79.60 per share, respectively, determined based on the closing price of our common stock on the grant date.

In 2019, 2018 and 2017, 11,640, 13,880 and 18,120 stock awards, respectively, were granted to the non-employee members of the Board of Directors pursuant to the Directors Equity Plan. The fair value of the stock awards granted in 2019, 2018 and 2017, was $89.34 per share, $93.65 per share and $71.73 per share, respectively, determined based on the closing price of our common stock on the grant date. The awards include dividend rights and vest immediately upon grant.

In 2019, 2018 and 2017, we made payments of $16.2 million, $12.3 million and $9.3 million, respectively, to tax authorities on our employees’ behalf for shares withheld related to net share settlements. These payments are reflected in the Stock-based compensation, net caption of the consolidated statements of equity.

A summary of the status of our unvested service-based and performance-based RSUs as of December 31, 2019 and changes during the year then ended is as follows:

		Weighted
		Average
		Grant Date
		Fair Value
Unvested RSUs	Shares	Per RSU
Unvested at January 1, 2019	889,830	$	82.05
Granted	488,345		88.05
Vested	(476,634)		80.18
Canceled or forfeited	(42,536)		83.97
Unvested at December 31, 2019	859,005	$	86.40

The total fair value of RSUs vested during 2019, 2018 and 2017 was $56.5 million, $34.6 million and $40.1 million, respectively.

Unrecognized Compensation Cost and Tax Benefits

As of December 31, 2019, there was $52.9 million of total unrecognized compensation cost related to unvested stock-based compensation awards granted under all stock-based compensation plans. That cost is expected to be recognized over a weighted average period of 1.4 years.

The tax benefit realized from our stock-based compensation plans in 2019, 2018 and 2017 was $5.5 million, $4.9 million and $8.4 million, respectively.