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Note 15 - Share-Based and Other Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of outstanding awards and compensation expense recognized for each type of share-based award
The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended:
 
 
December 31,
($ in thousands)
 
2016
 
2015
 
2014
Share-Based Compensation Programs
 
Liability
Recorded/
Equity
Instruments
Outstanding
 
Compensation
Cost
Recognized (1)
 
Liability
Recorded/
Equity
Instruments
Outstanding
 
Compensation
Cost
Recognized (1)
 
Liability
Recorded/
Equity
Instruments
Outstanding
 
Compensation
Cost
Recognized (1)
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
RSUs—Cash-Settled
 
$
18

 
$
(718
)
 
$
3,595

 
$
10,244

 
$
65,157

 
$
31,834

SARs—Cash-Settled
 
—

 
—

 
—

 
159

 
595

 
915

Liabilities
 
$
18

 
$
(718
)
 
$
3,595

 
$
10,403

 
$
65,752

 
$
32,749

Equity:
 
 
 
 
 
 
 
 
 
 
 
 
RSUs—Equity Settled
 
3,208,454

 
13,285

 
2,472,861

 
9,243

 
2,056,596

 
7,461

Non-Qualified Stock Options
 
2,839,738

 
3,286

 
2,692,457

 
2,984

 
3,029,348

 
2,531

Phantom Stock
 
234,174

 
2

 
230,196

 
2

 
284,645

 
3

ESPP
 
 
 
449

 
 
 
396

 
 
 
267

Equity
 
 
 
17,022

 
 
 
12,625

 
 
 
10,262

Total all share-based plans
 
 
 
$
16,304

 
 
 
$
23,028

 
 
 
$
43,011

______________________
(1)
For purposes of calculating compensation cost recognized, we generally consider time-vested awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. However, under the terms of our stock option awards granted in 2016, 2015, and 2014, legal vesting for retirement occurs when the grantee actually separates from service, with the exception of certain senior executives for whom vesting remains dependent on the stock price hurdle being met regardless of when the executive separates from service. Performance-based RSU awards granted in 2016, 2015, and 2014 provide that vesting remains dependent on the Company’s performance for the full term of the awards, notwithstanding the grantee’s earlier retirement.
Schedule of additional information regarding all share-based awards
The following table reflects additional information regarding all share-based awards for the years indicated:
 
 
Year Ended December 31,
(In thousands)
2016
 
2015
 
2014
Total compensation cost recognized
$
16,304

 
$
23,028

 
$
43,011

Less: Costs deferred as acquisition costs
206

 
500

 
1,047

Stock-based compensation expense
$
16,098

 
$
22,528

 
$
41,964
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]
Information with regard to RSUs to be settled in stock for the periods indicated is as follows:
 
Number of
Shares
 
Weighted Average
Grant Date
Fair Value
Unvested, December 31, 2015
2,472,861

 
$
12.62

Granted
1,264,858

 
$
11.79

Vested
(431,520
)
 
$
13.47

Forfeited
(97,745
)
 
$
16.00

Unvested, December 31, 2016
3,208,454

 
$
12.08
Schedule of valuation assumptions of performance based RSU
The following are assumptions used in our calculation of the grant date fair value of performance-based RSUs to be settled in common stock:
 
2016
 
2015
 
2014
Expected life
3 years

 
3 years

 
3 years

Risk-free interest rate (1) 
0.9
%
 
1.0
%
 
1.0
%
Volatility of Radian’s stock (2) 
29.7
%
 
40.6
%
 
71.9
%
Average volatility of peer companies (3) 
38.2
%
 
24.0
%
 
30.0
%
Dividend yield
0.08
%
 
0.05
%
 
0.06
%
Discount rate (4) 
10.7
%
 
13.9
%
 
—
%
______________________
(1)
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.
(2)
Volatility of Radian’s stock is used in the calculation of the grant date fair value of the portion of the awards based on TSR Measures, as described above. Volatility of Radian’s stock is not an applicable assumption for valuing the portion of the awards based on the cumulative growth in Radian’s book value per share. Volatility is determined at the date of grant using the historical share price volatility and the expected life of each award.
(3)
Average volatility of peer companies is used in the calculation of the grant date fair value of the portion of the awards based on the Relative TSR Measures, as described above.
(4)
A discount is applied to executive officer awards to reflect illiquidity during the one-year post-vesting holding period.
Schedule of information with regard to stock options
Information with regard to stock options for the periods indicated is as follows:
($ in thousands, except per-share amounts)
Number of
Shares
 
Weighted
Average
Exercise Price
Per Share
 
Weighted
Average
Remaining Contractual Term
 
Aggregate Intrinsic Value
Outstanding, December 31, 2015
2,692,457

 
$
6.94

 
 
 
 
Granted
342,090

 
$
12.18

 
 
 
 
Exercised
(162,998
)
 
$
4.40

 
 
 
 
Forfeited
(31,811
)
 
$
14.17

 
 
 
 
Expired
—

 
$
—

 
 
 
 
Outstanding, December 31, 2016
2,839,738

 
$
7.64

 
5.3
 
$
29,450

Exercisable, December 31, 2016
1,970,659

 
$
4.57

 
3.9
 
$
26,440

Available for grant, December 31, 2016
1,004,109

 
 
 
 
 
 
Schedule of fully vested share options
The following table summarizes information concerning stock option activity for the periods indicated:
 
 
Years Ended December 31,
($ in thousands, except per-share amounts)
 
2016
 
2015
 
2014
Granted (number of shares)
 
342,090

 
212,230

 
289,500

Weighted average grant date fair value per share (1) 
 
$
9.72

 
$
14.68

 
$
12.18

Aggregate intrinsic value of options exercised
 
$
1,519

 
$
7,146

 
$
192

Tax benefit of options exercised
 
$
532

 
$
2,501

 
$
67

Cash received from options exercised
 
$
717

 
$
1,285

 
$
259

______________________
(1)
We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table:
    
 
Year Ended December 31,
 
2016
 
2015
 
2014
Derived service period (years)
3.02 - 4.00

 
3.02 - 4.00

 
2.99 - 3.96

Risk-free interest rate (a) 
1.72
%
 
2.32
%
 
2.57
%
Volatility (b) 
94.20
%
 
93.70
%
 
94.26
%
Dividend yield
0.08
%
 
0.05
%
 
0.06
%
______________________
(a)
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.
(b)
Volatility is determined at the date of grant using historical share price volatility and expected life of each award.
Schedule of valuation assumptions of stock options granted
We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table:
    
 
Year Ended December 31,
 
2016
 
2015
 
2014
Derived service period (years)
3.02 - 4.00

 
3.02 - 4.00

 
2.99 - 3.96

Risk-free interest rate (a) 
1.72
%
 
2.32
%
 
2.57
%
Volatility (b) 
94.20
%
 
93.70
%
 
94.26
%
Dividend yield
0.08
%
 
0.05
%
 
0.06
%
______________________
(a)
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.
(b)
Volatility is determined at the date of grant using historical share price volatility and expected life of each award.
Schedule of outstanding and exercisable options
The following table summarizes information concerning outstanding and exercisable options at December 31, 2016:
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
Number
Outstanding
 
Weighted Average
Remaining
Contractual Life
(Years)
 
Weighted Average
Exercise Price
 
Number
Exercisable
 
Weighted Average
Exercise Price
$2.45 - $3.58
1,592,785

 
4.1
 
$
2.83

 
1,592,785

 
$
2.83

$5.76 - $7.06
43,674

 
1.2
 
$
6.91

 
43,674

 
$
6.91

$10.42 - $15.44
1,006,456

 
6.7
 
$
13.17

 
320,270

 
$
12.27

$18.42
196,823

 
8.5
 
$
18.42

 
13,930

 
$
18.42

 
2,839,738

 
5.3
 
$
7.64

 
1,970,659

 
$
4.57
Schedule of valuation assumptions of ESPP
The following are assumptions used in our calculation of ESPP compensation expense during 2016:
 
January 1, 2016
 
July 1, 2016
Expected life
6 months

 
6 months

Risk-free interest rate
0.83
%
 
0.92
%
Volatility
32.99
%
 
37.52
%
Dividend yield
0.08
%
 
0.10
%