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Stock Compensation Plans
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock Compensation Plans
Under its long-term incentive plan, the Company’s common shares have been made available for grant, at the discretion of the Compensation Committee of the Board of Directors, to officers and key employees in the form of stock option awards. Stock option awards typically have a ten-year term and generally vest in 25% increments annually beginning on the first anniversary of the date of grant.

During 2019, 2018 and 2017, the Company recognized stock-based compensation expense of $4.9 million ($3.7 million after tax or $0.05 per diluted share), $4.8 million ($3.7 million after tax or $0.05 per diluted share) and $5.2 million ($3.2 million after tax or $0.04 per diluted share), respectively, for stock option awards.

The fair value of stock option awards granted was estimated at the date of grant using a Black-Scholes option-pricing method with the following assumptions:
 
2019
2018
2017
Weighted-average fair value per option
$
9.58

$
10.29

$
10.60

Risk-free interest rate
2.46
%
2.62
%
1.96
%
Dividend yield
2.52
%
2.30
%
2.96
%
Expected stock volatility
28.29
%
27.78
%
32.25
%
Expected life - years
5

5

5


Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and the expected lives of the options. The dividend yield was calculated based upon the last dividend prior to the grant compared to the trailing 12 months' daily stock prices. The risk-free interest rate was based upon yields of U.S. zero coupon issues with a term equal to the expected life of the option being valued.

A summary of stock option award activity for the year ended December 31, 2019 is presented below:
 
Number of
Shares
Weighted-average
Exercise Price
Weighted-average
Remaining
Contractual Term
Aggregate Intrinsic Value
(millions)
Outstanding - beginning of year
3,189,950

$
38.21

 
 
Granted - new awards
558,760

42.61

 
 
Exercised
(803,604
)
34.25

 
 
Canceled or expired
(31,834
)
42.36

 
 
Outstanding - end of year
2,913,272

$
40.10

6 years
$
47.2

Options expected to vest
2,913,272

$
40.10

6 years
$
47.2

Options exercisable
1,676,248

$
38.91

5 years
$
29.2


The total intrinsic value of stock option awards exercised during the years ended December 31, 2019, 2018 and 2017 was $13.4 million, $6.7 million and $14.7 million, respectively. Net cash proceeds from the exercise of stock option awards were $27.5 million, $12.8 million and $32.9 million, respectively.

In addition to stock option awards, the Company has granted performance-based restricted stock units, time-based restricted stock units, deferred shares and restricted shares under its long-term incentive plan. A summary of those awards granted in 2019 is presented below:
 
Expected to be Settled in Equity
Expected to be Settled in Cash
Total Awards Granted
Performance-based restricted stock units
296,597

7,241

303,838

Time-based restricted stock units
157,465

3,940

161,405

Deferred shares
14,870

0

14,870



Performance-based restricted stock units are calculated and awarded based on the achievement of specified performance objectives and cliff vest three years from the date of grant. The majority of time-based restricted stock units vest in 25% increments annually beginning on the first anniversary of the grant, with the remainder fully-vesting on the first anniversary of the grant. Deferred shares generally cliff vest 5 years from the date of grant. For time-based restricted stock units that are expected to settle in cash, the Company had $1.1 million and $0.8 million accrued in salaries, wages and benefits as of December 31, 2019 and 2018, respectively, on the Consolidated Balance Sheets.

A summary of stock award activity, including performance-based restricted stock units, time-based restricted stock units, deferred shares and restricted shares that will settle in common shares for the year ended December 31, 2019 is as follows:
 
Number of Shares
Weighted-average
Grant Date Fair Value
Outstanding - beginning of year
1,196,492

$
38.76

Granted - new awards
468,932

41.57

Vested
(539,396
)
32.08

Canceled or expired
(19,304
)
43.31

Outstanding - end of year
1,106,724

$
43.13


As of December 31, 2019, a total of 1,106,724 stock awards have been awarded that have not yet vested. The Company distributed shares totaling 539,396 in 2019, 290,287 in 2018 and 445,036 in 2017 due to the vesting of stock awards. The grant date fair value of these vested shares was $17.3 million, $11.8 million and $16.5 million, respectively. Shares awarded totaled 468,932 in 2019, 388,525 in 2018 and 407,436 in 2017. The Company recognized compensation expense of $22.3 million, $27.5 million and $19.5 million for the years ended December 31, 2019, 2018 and 2017, respectively, relating to performance-based restricted stock units, time-based restricted stock units, deferred shares and restricted shares.

As of December 31, 2019, the Company had unrecognized compensation expense of $30.0 million related to stock options and stock awards, which is expected to be recognized over a total weighted-average period of two years. There were 10 million shares available for future grants for all plans at December 31, 2019.