Share-based Compensation

6 Months Ended

Jun. 30, 2015

The Company has a long-term equity incentive plan, which allows for grants of restricted stock, performance awards, stock appreciation rights, and stock options to directors, officers, and employees, as well as others who engage in services for PCA. The Company has not granted option awards since 2007. The plan, as amended, terminates May 1, 2023, and authorizes 10.6 million shares of common stock for grant over the life of the plan. As of June 30, 2015, 1.4 million shares were available for future issuance under the plan. Forfeitures are added back to the pool of shares of common stock available to be granted at a future date.

The following table presents restricted stock and performance unit award activity for the six months ended June 30, 2015:



	Restricted Stock				Performance Units
	Shares		Weighted Average Grant- Date Fair Value		Shares	Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2015	1,184,299		$	41.71	127,489	$	58.25
Granted	205,462		65.25		47,512	65.17
Vested	(349,451	)	29.37		—	—
Forfeitures	(4,537	)	65.79		—	—
Outstanding at June 30, 2015	1,035,773		$	49.82	175,001	$	60.13

Compensation Expense

Our share-based compensation expense is recorded in "Selling, general, and administrative expenses". Compensation expense for share-based awards recognized in the Consolidated Statements of Income, net of forfeitures, was as follows (dollars in millions):



	Three Months Ended June 30						Six Months Ended June 30
	2015			2014			2015			2014
Restricted stock	$	4.4		$	3.7		$	8.0		$	7.0
Performance units	0.5			0.3			1.1			0.6
Total share-based compensation expense	4.9			4.0			9.1			7.6
Income tax benefit	(1.9		)	(1.6		)	(3.5		)	(3.0		)
Share-based compensation expense, net of tax benefit	$	3.0		$	2.4		$	5.6		$	4.6

The fair value of restricted stock and performance units is determined based on the closing price of the Company’s common stock on the grant date. As PCA’s Board of Directors has the ability to accelerate vesting of share-based awards upon an employee’s retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age.

The unrecognized compensation expense for all share-based awards at June 30, 2015, was as follows (dollars in millions):



	June 30, 2015
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	33.0	2.9
Performance units	7.5		3.2
Total unrecognized share-based compensation expense	$	40.5	3.0