Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation.

We recognized $2.5 million and $2.8 million in pre-tax compensation expense related to stock options and restricted stock units during the three months ended June 30, 2016 and 2015, respectively, and $4.8 million and $5.0 million during the six months ended June 30, 2016 and 2015, respectively. During the six months ended June 30, 2016, we granted approximately 827,000 stock options, 622,000 performance-based restricted stock units and 424,000 time-vesting restricted stock units. The stock options granted were valued using a Black-Scholes pricing model with the following assumptions: an expected volatility of 35.88% to 42.19%, a risk-free interest rate of 1.14% to 1.85%, an expected dividend yield of 2.0% to 6.4% and an expected life of 3.50 to 5.75 years. The weighted-average exercise price of the options granted during the six months ended June 30, 2016, was $11.62 and the weighted-average grant-date fair value was $2.92. Performance-based restricted stock units are valued using a Monte Carlo simulation. Time-vesting restricted stock units are valued using the closing price on the trading day immediately preceding the day of the grant. The weighted-average grant date fair value of the restricted stock units granted during the six months ended June 30, 2016, was $9.14.