Stock-Based Compensation

9 Months Ended

Sep. 30, 2016

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation.

We recognized $2.6 million and $2.0 million in pre-tax compensation expense related to stock options and restricted stock units during the three months ended September 30, 2016 and 2015, respectively, and $7.4 million and $6.9 million during the nine months ended September 30, 2016 and 2015, respectively. During the nine months ended September 30, 2016, we granted approximately 912,000 stock options, 641,000 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 44.02%, a risk-free interest rate of 0.79% 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 nine months ended September 30, 2016 was $11.68 and the weighted-average grant-date fair value was $2.96. 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 nine months ended September 30, 2016 was $9.20.