Note 15 - Share-Based and Other Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2017

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)	2017				2016					2015
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	$	—	$	1	$	18	$	(718	)	$	3,595	$	10,244
SARs—Cash-Settled	—		—		—		—			—		159
Liabilities	$	—	$	1	$	18	$	(718	)	$	3,595	$	10,403
Equity:
RSUs—Equity Settled	3,434,976		12,206		3,208,454		13,285			2,472,861		9,243
Non-Qualified Stock Options	1,692,743		851		2,839,738		3,286			2,692,457		2,984
Phantom Stock	234,302		2		234,174		2			230,196		2
Employee Stock Purchase Plan			432				449					396
Equity			13,491				17,022					12,625
Total all share-based plans			$	13,492			$	16,304				$	23,028

______________________

(1) For purposes of calculating compensation cost recognized, we generally consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible.

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)	2017		2016		2015
Total compensation cost recognized	$	13,492	$	16,304	$	23,028
Less: Costs deferred as acquisition costs	269		206		500
Stock-based compensation expense	$	13,223	$	16,098	$	22,528

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, 2016	3,208,454		$	12.08
Granted	1,020,832		$	16.84
Vested	(99,424	)	$	14.39
Forfeited	(694,886	)	$	14.66
Unvested, December 31, 2017	3,434,976		$	12.90

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:

	2017		2016		2015
Expected life	3 years		3 years		3 years
Risk-free interest rate (1)	1.6	%	0.9	%	1.0	%
Volatility of Radian’s stock (2)	28.0	%	29.7	%	40.6	%
Average volatility of peer companies (3)	30.6	%	38.2	%	24.0	%
Dividend yield	0.06	%	0.08	%	0.05	%
Discount rate (4)	10.7	%	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 Measure, 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, 2016	2,839,738		$	7.64
Granted	—		$	—
Exercised	(1,092,559	)	$	6.53
Forfeited	(54,436	)	$	13.79
Expired	—		$	—
Outstanding, December 31, 2017	1,692,743		$	8.16	5.6	$	21,075
Exercisable, December 31, 2017	1,162,943		$	5.24	4.6	$	17,878
Available for grant, December 31, 2017	8,851,531

Schedule of fully vested share options

The following table summarizes additional information concerning stock option activity for the periods indicated:

	Years Ended December 31,
($ in thousands, except per-share amounts)	2017		2016		2015
Granted (number of shares)	—		342,090		212,230
Weighted-average grant date fair value per share (1)	$	—	$	9.72	$	14.68
Aggregate intrinsic value of options exercised	$	14,389	$	1,519	$	7,146
Tax benefit of options exercised	$	5,036	$	532	$	2,501
Cash received from options exercised	$	7,131	$	717	$	1,285

______________________

(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
Derived service period (years)	3.02 - 4.00		3.02 - 4.00
Risk-free interest rate (a)	1.72	%	2.32	%
Volatility (b)	94.20	%	93.70	%
Dividend yield	0.08	%	0.05	%

______________________

(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
Derived service period (years)	3.02 - 4.00		3.02 - 4.00
Risk-free interest rate (a)	1.72	%	2.32	%
Volatility (b)	94.20	%	93.70	%
Dividend yield	0.08	%	0.05	%

______________________

(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, 2017:

	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	903,224	4.3	$	2.64	903,224	$	2.64
$5.76 - $7.06	17,676	0.2	$	7.06	17,676	$	7.06
$10.42 - $15.44	601,648	7.1	$	13.57	224,603	$	14.50
$18.42	170,195	7.5	$	18.42	17,440	$	18.42
	1,692,743	5.6	$	8.16	1,162,943	$	5.24

Schedule of valuation assumptions of ESPP

The following assumptions were used in our calculation of Employee Stock Purchase Plan compensation expense during 2017:

	January 1, 2017		July 1, 2017
Expected life	6 months		6 months
Risk-free interest rate	1.04	%	1.35	%
Volatility	34.68	%	29.37	%
Dividend yield	0.06	%	0.06	%

Share-based Compensation Arrangement by Share-based Payment Award, Time-Vested Units, Grants in Period [Table Text Block]

Information with regard to grants of time-vested RSUs to be settled in common stock is as follows for the periods indicated:

	Year Ended December 31,
	2017 (1)	2016 (2)		2015 (2)
Time-vested RSUs granted to certain executives and non-executive officers	372,489	180,380		56,970
Time-vested RSUs granted to non-employee directors	68,337	356,040	(3)	56,171
Total time-vested RSUs granted (4)	440,826	536,420		113,141

______________________

(1) The time-vested RSU awards granted in 2017 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years.

(2) The time-vested RSU awards granted in 2016 and 2015 generally are subject to three-year cliff vesting.

(3) Includes 262,694 time-vested awards granted on February 10, 2016 to convert the outstanding fully-vested 2009 and 2010 time-vested RSUs (to be settled in cash) awarded to our non-employee directors into time-vested RSUs to be settled in shares of our common stock on the conversion date (generally defined as a director’s termination of service with us).

(4) The grant date fair value of time-vested RSUs was calculated based on the closing price of our common stock on the New York Stock Exchange on the date of grant, discounted for the lack of dividends earned over the vesting period, and is recognized as compensation expense over the service period.