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Common Stock And Stock-Based Awards Plans

12 Months Ended

Dec. 31, 2019

Note 9—Common Stock and Stock-Based Awards Plans

On March 6, 2018, the Board of Directors approved an expanded stock repurchase authorization granting the Company authority to repurchase up to $250 million in common stock in addition to the $100 million previously approved on December 7, 2015. On October 26, 2018, the Board of Directors authorized the repurchase of an additional $100 million of the Company’s common stock. As of December 31, 2019, the Company had $79.5 million remaining under the stock repurchase authorization. On February 19, 2020, the Board of Directors authorized the repurchase of an additional $150 million of the Company’s common stock.

Share purchases may be made in the open market, in privately negotiated transactions or block transactions, at the discretion of the Company’s management and as market conditions warrant. Purchases will be funded from available cash and may be commenced, suspended or discontinued at any time without prior notice. Shares repurchased under the program are retired. During 2019, the Company repurchased a total of 4.7 million common shares for an aggregate of $122.1 million at an average price of $25.86 per share. During 2018, the Company repurchased a total of 8.2 million common shares for an aggregate of $211.9 million at an average price of $25.71 per share. During 2017, the Company repurchased a total of 1.0 million common shares for an aggregate of $29.3 million at an average price of $30.46 per share.

The Company began declaring and paying quarterly dividends during the first quarter of 2018. During 2019 and 2018, cash dividends paid totaled $23.3 million and $21.0 million, respectively. On December 16, 2019, the Company declared a quarterly cash dividend of $0.15 per share of the Company’s common stock to shareholders of record as of December 30, 2019. The dividend of $5.5 million was paid on January 13, 2020. In February 2020, the Board of Directors approved a quarterly dividend increase, raising the quarterly dividend from $0.15 to $0.16 per common share. The Board of Directors currently intends to continue paying quarterly dividends. However, the Company’s future dividend policy is subject to the Company’s compliance with applicable law, and depending on, among other things, the Company’s results of operations, financial condition, level of indebtedness, capital requirements, contractual restrictions, restrictions in the Company’s debt agreements, and other factors that the Board of Directors may deem relevant. Dividend payments are not mandatory or guaranteed; there can be no assurance that the Company will continue to pay a dividend in the future.

The Company’s 2019 Omnibus Incentive Compensation Plan (the 2019 Plan) authorizes the Company, upon approval of the Compensation Committee of the Board of Directors, to grant a variety of awards, including stock options, restricted shares and restricted stock units (both time-based and performance-based) and other forms of equity awards, or any combination thereof, to any director, officer, employee or consultant (including any prospective director, officer, employee or consultant) of the Company. Stock options (which have not been awarded since 2015) are granted to employees with an exercise price equal to the market price of the Company’s common stock on the date of grant, generally vest over a four-year period from the date of grant and have a term of 10 years. Time-based restricted stock units granted to employees generally vest over a four-year period from the date of grant, subject to the continued employment of the employee by the Company. Performance-based restricted stock units generally vest over a three-year performance cycle, which includes the year of the grant, and are based upon the Company’s achievement of specified performance metrics. Awards under the 2019 Plan to non-employee directors have been in the form of restricted stock units, which vest in annually, starting on the grant date.

As of December 31, 2019, 3.3 million additional common shares were available for issuance under the Company’s 2019 Plan.

The following table summarizes activities related to the Company’s stock options:

				Weighted-
			Weighted-	Average
			Average	Remaining	Aggregate
		Number of	Exercise	Contractual	Intrinsic
(in thousands, except per share data)		Options	Price	Term (Years)	Value
	Outstanding as of December 31, 2016	1,197	$ 19.51
	Exercised	(582)	19.28
	Forfeited or expired	(19)	19.76
	Outstanding as of December 31, 2017	596	19.72
	Exercised	(200)	18.21
	Forfeited or expired	(22)	22.99
	Outstanding as of December 31, 2018	374	20.35
	Exercised	(100)	21.21
	Forfeited or expired	(4)	21.29
	Outstanding as of December 31, 2019	270	$ 20.02	3.49	$	3,878

	Exercisable as of December 31, 2019	270	$ 20.02	3.49	$	3,878

The aggregate intrinsic value in the table above is before income taxes and is calculated as the difference between the exercise price of the underlying options and the Company’s closing stock price as of the last business day of 2019 for options that had exercise prices that were below the closing price.

As of December 31, 2019, 2018 and 2017, the number of options exercisable was 0.3 million, 0.3 million and 0.4 million, respectively, and the weighted-average exercise price of those options was $20.02, $20.07 and $18.56, respectively.

Restricted stock units, time-based and performance-based, remain outstanding as detailed below.

The following table summarizes the activities related to the Company’s time-based restricted stock units:

			Weighted-
			Average
		Number of	Grant Date
(in thousands, except per share data)		Units	Fair Value
	Non-vested awards outstanding as of December 31, 2016	525	$ 22.57
	Granted	314	31.56
	Vested	(206)	21.84
	Forfeited	(40)	24.21
	Non-vested awards outstanding as of December 31, 2017	593	27.47
	Granted	407	29.44
	Vested	(306)	27.25
	Forfeited	(99)	27.52
	Non-vested awards outstanding as of December 31, 2018	595	$ 28.93
	Granted	632	27.36
	Vested	(254)	28.09
	Forfeited	(80)	28.97
	Non-vested awards outstanding as of December 31, 2019	893	$ 28.06

The following table summarizes the activities related to the Company’s performance-based restricted stock units:

			Weighted-
			Average
		Number of	Grant Date
(in thousands, except per share data)		Units	Fair Value
	Non-vested units outstanding as of December 31, 2016	227	$ 21.43
	Granted⁽¹⁾	172	31.60
	Forfeited	(53)	18.81
	Non-vested units outstanding as of December 31, 2017	346	26.88
	Granted⁽¹⁾	120	29.60
	Forfeited	(147)	24.06
	Non-vested units outstanding as of December 31, 2018	319	$ 29.19
	Granted⁽¹⁾	198	27.45
	Vested	(57)	31.40
	Forfeited	(76)	21.23
	Non-vested units outstanding as of December 31, 2019	384	$ 28.89

⁽¹⁾Represents target number of units that can vest based on the achievement of the performance goals.