SHARE-BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

The following table provides information on share-based compensation expense and income tax benefits recognized during the periods:


	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
	(In thousands)
Stock option and stock purchase plans	$	1,052	$	1,511	$	3,461	$	4,986
Unvested stock awards	7,337		5,244		15,558		16,691
Share-based compensation expense	8,389		6,755		19,019		21,677
Income tax benefit	(1,470)		(1,327)		(2,955)		(3,861)
Share-based compensation expense, net of tax	$	6,919	$	5,428	$	16,064	$	17,816

Total unrecognized pre-tax compensation expense related to all share-based compensation arrangements at September 30, 2020 was $45 million and is expected to be recognized over a weighted-average period of 2.0 years.

We generally grant awards under our various share-based compensation plans in the first quarter of each year in the annual management grant. The following table is a summary of the awards granted in the annual management grant in the first quarter of 2020:




	Shares Granted	Weighted-Average Fair Market Value
	(Shares in thousands)


Performance-based restricted stock rights	292		$	37.47






Time-vested restricted stock rights	557		38.45
Total	849		$	38.11

Restricted stock awards are unvested stock rights that are granted to employees and entitle the holder to shares of common stock as the award vests. Performance-based restricted stock awards (PBRSRs) include a performance-based vesting condition. PBRSRs are awarded based on various revenue, return-based and cash flow performance targets and a majority of PBRSRs include a total shareholder return (TSR) modifier. The fair values of the PBRSRs that include a TSR modifier are estimated using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. The fair value of PBRSRs that do not include a TSR modifier is determined and fixed on the grant date based on our stock price on the date of grant. Share-based compensation expense for PBRSRs is recognized on a straight-line basis over the vesting period, based upon the probability that the performance target will be met.

Time-vested restricted stock rights typically vest ratably over three years regardless of company performance. The fair value of the time-vested awards is determined and fixed based on our stock price on the date of grant. Share-based compensation expense for restricted stock awards is recognized on a straight-line basis over the vesting period.