XML 52 R25.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation

Pursuant to the Company's Omnibus Incentive and Equity Plan (the "Plan"), officers, employees and directors may be granted equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"), stock options and unrestricted shares of common stock. At December 31, 2019, 552,999 shares of common stock remain available for issuance of the 2,820,000 shares that are authorized for issuance under the Plan.
Stock-based compensation expense is summarized as follows: 
 
Years Ended December 31,
(in thousands)
2019
 
2018
 
2017
Stock-based compensation expense
$
22,232

 
$
23,116

 
$
20,288



Restricted Stock Units

Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs generally have a term of one to three years and may be time-vested or performance-contingent (PSUs). Shares that are issued upon vesting are newly issued shares from the Plan and are not issued from treasury stock.
RSU activity for the year ended December 31, 2019 is summarized as follows: 
 
Number
of shares
 
Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2018
552,238

 
$
111.49

Granted
181,367

 
$
108.42

Forfeited
(24,019
)
 
$
95.13

Settled
(181,210
)
 
$
98.20

Outstanding at December 31, 2019
528,376

 
$
115.74



The grant-date intrinsic value of RSUs granted during the year ended December 31, 2019 was $19.7 million.
 
Years Ended December 31,
(in millions, except per share values)
2019
 
2018
 
2017
Weighted-average grant-date fair value per share
$
108.42

 
$
131.16

 
$
108.32

Fair value of RSUs vested
$
17.8

 
$
12.5

 
$
11.3



For the years ended December 31, 2019, 2018 and 2017, a total of 66,441, 41,101 and 32,716 RSUs, respectively, were withheld through net share settlement by the Company to settle minimum employee tax withholding obligations. The Company paid $6.9 million, $5.3 million and $3.5 million for the years ended December 31, 2019, 2018 and 2017, respectively, in minimum employee tax withholding obligations related to RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting.

As of December 31, 2019 and 2018, unamortized stock-based compensation expense for outstanding RSUs was $27.8 million and $32.2 million, respectively, with a weighted average remaining contractual life of 1.3 years and 1.5 years, respectively. The Company did not capitalize any stock-based compensation expenses during the years ended December 31, 2019, 2018 and 2017.

During the years ended December 31, 2019 and 2018, the Company granted 52,960 and 68,803 PSUs included in the table above that contain performance-based metrics in addition to a service condition. Compensation expense for these PSUs is generally recognized over a three-year service period. For the years ended December 31, 2019 and 2018, total stock-based compensation expense included $7.5 million and $8.2 million, respectively, for PSUs. As of December 31, 2019 and 2018, unamortized stock-based compensation expense related to PSUs was $10.7 million and $11.4 million, respectively.
Stock Options
Stock option activity for the year ended December 31, 2019 is summarized as follows: 
 
Number
of shares
 
Weighted
Average
Exercise Price
Outstanding at December 31, 2018
76,751

 
$
12.86

Exercised
(70,097
)
 
$
10.35

Outstanding at December 31, 2019
6,654

 
$
39.35

Vested and exercisable at December 31, 2019
6,654

 
$
39.35



Stock options generally cliff vest after three years and have a contractual life of ten years. The weighted-average remaining contractual term for stock options outstanding at December 31, 2019 and December 31, 2018 was 0.8 and 0.5 years, respectively. The weighted-average remaining contractual term for stock options vested and exercisable at December 31, 2019 was 0.8 years. At December 31, 2019, the aggregate intrinsic value of stock options outstanding and vested and exercisable was $0.5 million. There were no unvested stock options at December 31, 2019. The total intrinsic value of stock options exercised for the years ended December 31, 2019, 2018 and 2017 was $6.4 million, $3.0 million and $2.5 million, respectively. Cash received from stock option exercises was $0.7 million, $0.8 million and $0.1 million for 2019, 2018 and 2017, respectively.

Employee Stock Purchase Plan

The Company offers an employee stock purchase plan that allows employees to purchase shares of common stock on the open market at market price through after-tax payroll deductions. The initial transaction fees are paid for by the Company and shares of common stock are purchased on a quarterly basis. The Company does not reserve shares for this plan or discount the purchase price of the shares.