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STOCKHOLDERS' EQUITY: | 3 Months Ended
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Mar. 31, 2019
STOCKHOLDERS' EQUITY: |
STOCKHOLDERS' EQUITY: | NOTE 11 – STOCKHOLDERS’EQUITY: Treasury Stock: Activity in treasury stock in the three-month period ended March 31, 2019 and 2018 is as follows (in millions):
|  | 2019 |  | 2018
Southern Copper common shares |  |  |  |  |  |
Balance as of January 1, |  | $ | 2,768.3 |  | $ | 2,768.7
Purchase of shares |  |  | — |  |  | —
Balance as of March 31, |  |  | 2,768.3 |  |  | 2,768.7
Parent Company (Grupo Mexico) common shares |  |  |  |  |  |
Balance as of January 1, |  |  | 251.3 |  |  | 232.4
Other activity, including dividend, interest and foreign currency transaction effect |  |  | 6.4 |  |  | 6.5
Balance as of March 31, |  |  | 257.7 |  |  | 238.9
Treasury stock balance as of March 31, |  | $ | 3,026.0 |  | $ | 3,007.6
Southern Copper Common Shares: At March 31, 2019 and 2018, there were in treasury 111,551,617 and 111,567,617 SCC’s common shares, respectively. SCC share repurchase program: In 2008, the Company’s Board of Directors (“BOD”) authorized a $500 million share repurchase program that has since been increased by the BOD and is currently authorized to $3 billion. Pursuant to this program, the Company has purchased 119.5 million shares of common stock at a cost of $2.9 billion. These shares are available for general corporate purposes. The Company may purchase additional shares of its common stock from time to time, based on market conditions and other factors. This repurchase program has no expiration date and may be modified or discontinued at any time. The NYSE closing price of SCC common shares at March 31, 2019 was $39.68 and the maximum number of shares that the Company could purchase at that price is 2.1 million shares. As a result of the repurchase of shares of SCC’s common stock, Grupo Mexico’s direct and indirect ownership was 88.9% as of March 31, 2019. There has not been any activity in the SCC share repurchase program since the third quarter of 2016. Directors’ Stock Award Plan: The Company established a stock award compensation plan for certain directors who are not compensated as employees of the Company. Under this plan, participants received 1,200 shares of common stock upon election and 1,200 additional shares following each annual meeting of stockholders thereafter. 600,000 shares of Southern Copper common stock have been reserved for this plan. On April 26, 2018, the Company's Board of Directors and the stockholders approved a five-year extension of the Plan until January 29, 2023 and an increase of the shares award from 1,200 to 1,600. The fair value of the award is measured each year at the date of the grant. Parent Company common shares: At March 31, 2019 and 2018 there were in treasury 100,181,108 and 104,479,600 of Grupo Mexico’s common shares, respectively. Employee Stock Purchase Plan: 2015 Plan: In January 2015, the Company offered to eligible employees a new stock purchase plan through a trust that acquires series B shares of Grupo Mexico stock for sale to its employees, and employees of subsidiaries, and certain affiliated companies. The purchase price was established at 38.44 Mexican pesos (approximately $2.63) for the initial subscription, which expires in January 2023. Every two years employees will be able to acquire title to 50% of the shares paid in the previous two years. The employees will pay for shares purchased through monthly payroll deductions over the eight year period of the plan. At the end of the eight year period, the Company will grant the participant a bonus of 1 share for every 10 shares purchased by the employee. Any future subscription will be at the average market price at the date of acquisition or the grant date. If Grupo Mexico pays dividends on shares during the eight year period, the participants will be entitled to receive the dividend in cash for all shares that have been fully purchased and paid as of the date that the dividend is paid. If the participant has only partially paid for shares, the entitled dividends will be used to reduce the remaining liability owed for purchased shares. In the case of voluntary or involuntary resignation/termination of the employee, the Company will pay to the employee the fair market sales price at the date of resignation of the fully paid shares, net of costs and taxes. When the fair market sales value of the shares is higher than the purchase price, the Company will apply a deduction over the amount to be paid to the employee based on a decreasing schedule specified in the plan. In case of retirement or death of the employee, the Company will render the buyer or his legal beneficiary, the fair market sales value as of the date of retirement or death of the shares effectively paid, net of costs and taxes. The stock based compensation expense for the first quarter 2019 and 2018 and the unrecognized compensation expense under this plan were as follows (in millions):
|  | 2019 |  | 2018
Stock based compensation expense |  | $ | 0.2 |  | $ | 0.2
Unrecognized compensation expense |  | $ | 2.4 |  | $ | 3.0
The following table presents the activity of this plan for the three months ended March 31, 2019 and 2018:
|  |  |  | Unit Weighted Average
|  | Shares |  | Grant Date Fair Value
Outstanding shares at January 1, 2019 |  | 1,840,336 |  | $ | 2.63
Granted |  | — |  |  | —
Exercised |  | (247,670) |  |  | 2.63
Forfeited |  | — |  |  | —
Outstanding shares at March 31, 2019 |  | 1,592,666 |  | $ | 2.63
Outstanding shares at January 1, 2018 |  | 2,293,120 |  | $ | 2.63
Granted |  | — |  |  | —
Exercised |  | (1,873) |  |  | 2.63
Forfeited |  | — |  |  | —
Outstanding shares at March 31, 2018 |  | 2,291,247 |  | $ | 2.63
2018 Plan: In November 2018, the Company offered to eligible employees a new stock purchase plan (the “New Employee Stock Purchase Plan”) through a trust that acquires series B shares of Grupo Mexico stock for sale to its employees, and employees of subsidiaries, and certain affiliated companies. The purchase price was established at 37.89 Mexican pesos (approximately $1.86) for the initial subscription, which expires in October 2026. Every two years employees will be able to acquire title to 50% of the shares paid in the previous two years. The employees will pay for shares purchased through monthly payroll deductions over the eight year period of the plan. At the end of the eight year period, the Company will grant the participant a bonus of 1 share for every 10 shares purchased by the employee. Any future subscription will be at the average market price at the date of acquisition or the grant date. If Grupo Mexico pays dividends on shares during the eight year period, the participants will be entitled to receive the dividend in cash for all shares that have been fully purchased and paid as of the date that the dividend is paid. If the participant has only partially paid for shares, the entitled dividends will be used to reduce the remaining liability owed for purchased shares. In the case of voluntary or involuntary resignation/termination of the employee, the Company will pay to the employee the fair market sales price at the date of resignation of the fully paid shares, net of costs and taxes. When the fair market sales value of the shares is higher than the purchase price, the Company will apply a deduction over the amount to be paid to the employee based on a decreasing schedule specified in the plan. In case of retirement or death of the employee, the Company will render the buyer or his legal beneficiary, the fair market sales value as of the date of retirement or death of the shares effectively paid, net of costs and taxes. The stock based compensation expense for the three months ended March 31, 2019 and the unrecognized compensation expense under this plan were as follows (in millions):
|  | 2019
Stock based compensation expense |  | $ | 0.1
Unrecognized compensation expense |  | $ | 3.5
The following table presents the stock award activity of this plan for the three months ended March 31, 2019:
|  |  |  | Unit Weighted Average
|  | Shares |  | Grant Date Fair Value
Outstanding shares at January 1, 2019 |  | 2,782,424 |  | $ | 1.86
Granted |  | — |  |  | —
Exercised |  | — |  |  | —
Forfeited |  | — |  |  | —
Outstanding shares at March 31, 2019 |  | 2,782,424 |  | $ | 1.86
Non-controlling interest: The following table presents the non-controlling interest activity for the three months ended March 31, 2019 and 2018:
|  | 2019 |  | 2018
Balance as of January 1, |  | $ | 45.4 |  | $ | 41.7
Net earnings |  |  | 1.0 |  |  | 1.2
Dividend paid |  |  | (0.1) |  |  | (0.3)
Balance as of March 31, |  | $ | 46.3 |  | $ | 42.6

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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