Stock-Based Compensation

6 Months Ended

Jun. 30, 2017

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We recognized $1.8 million and $2.5 million in pre-tax compensation expense related to stock options and restricted stock units during the three months ended June 30, 2017 and 2016, respectively, and $1.1 million and $4.8 million during the six months ended June 30, 2017 and 2016, respectively. During the six months ended June 30, 2017, we granted approximately 756,000 stock options, 490,000 market-based performance restricted stock units and 466,000 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 43.75% to 52.52%, a risk-free interest rate of 1.54% to 2.07%, an expected dividend yield of 2.84% to 3.85% and an expected term of 3.5 years to 5.75 years. The weighted-average exercise price of the options granted during the six months ended June 30, 2017 was $8.97 and the weighted-average grant-date fair value was $2.73. 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, 2017 was $9.00.