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Share-Based Compensation | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Share-Based Compensation | Share-Based Compensation On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (as amended, “LTIP”) which provided an additional 3.3 million shares that could be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards, in addition to the shares from the previous plan, the 1992 Plan. Since inception of the LTIP, non-qualified stock options and restricted stock awards have been granted with a five year vesting schedule. Under the LTIP, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. On May 24, 2016, our stockholders adopted the 2016 Long-Term Incentive Plan (as amended, “2016 Plan”) which provides for approximately 8.9 million shares, comprised of 3.4 million new shares provided for under the 2016 Plan, approximately 0.4 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, approximately 2.6 million shares that were approved by the stockholders on May 15, 2018, and an additional 2.5 million shares that were approved by the stockholders on May 12, 2020. Under the 2016 Plan, shares can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance awards, dividend equivalent rights, and other awards. Under the 2016 Plan, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The 2016 Plan is administered by the Compensation Committee of the Board of Directors or such other committee of the Board of Directors as is designated by the Board of Directors (the “Committee”). Membership on the Committee is limited to independent directors. The Committee may delegate certain duties to one or more officers of the Company as provided in the 2016 Plan. The Committee determines the persons to whom awards are to be made, determines the type, size and terms of awards, interprets the 2016 Plan, establishes and revises rules and regulations relating to the 2016 Plan and makes any other determinations that it believes necessary for the administration of the 2016 Plan. The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during December 31, 2020, 2019, and 2018 using a Black Scholes-Merton Model:
| 2020 |  | 2019 |  | 2018
Director and Officers: |  |  |  |  |
Expected dividend yield | $ | 0.33 |  |  | $ | 0.32 |  |  | $ | 0.26 |
Expected volatility | 31.63 | % |  | 29.54 | % |  | 29.73 | %
Risk-free interest rate | 0.64 | % |  | 2.40 | % |  | 2.20 | %
Expected life (in years) | 5.00 |  | 5.00 |  | 5.00
Employees: |  |  |  |  |
Expected dividend yield | $ | 0.32 |  |  | $ | 0.32 |  |  | $ | 0.26 |
Expected volatility | 31.39 | % |  | 29.54 | % |  | 29.82 | %
Risk-free interest rate | 0.67 | % |  | 2.38 | % |  | 2.51 | %
Expected life (in years) | 5.00 |  | 5.00 |  | 5.00
The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date. The following is a summary of stock options vested and exercisable as of December 31, 2020:
|  |  |  | Weighted Average |  | Weighted |  |
Range of |  | Number |  | Remaining |  | Average |  |
Exercise |  | of |  | Contractual |  | Exercise |  | Intrinsic
Prices |  | Shares |  | Life |  | Price |  | Value
|  |  |  |  |  |  |  | (in thousands)
$7.18 - 36.95 |  | 543,646 |  |  | 5.33 |  | $ | 28.33 |  |  | $ | 20,820 |
$37.00 - 40.87 |  | 1,978 |  |  | 7.09 |  | 38.50 |  |  | 56 |
$41.37 - 66.98 |  | 194,697 |  |  | 7.87 |  | 41.59 |  |  | 4,875 |
Total |  | 740,321 |  |  | 6.00 |  | $ | 31.85 |  |  | $ | 25,751 |
The following is a summary of stock options vested and exercisable as of December 31, 2019:
|  |  |  | Weighted Average |  | Weighted |  |
Range of |  | Number |  | Remaining |  | Average |  |
Exercise |  | of |  | Contractual |  | Exercise |  | Intrinsic
Prices |  | Shares |  | Life |  | Price |  | Value
|  |  |  |  |  |  |  | (in thousands)
$7.18 - 34.10 |  | 451,077 |  |  | 5.44 |  | $ | 23.47 |  |  | $ | 11,702 |
$34.15 - 40.87 |  | 86,122 |  |  | 7.82 |  | 36.33 |  |  | 1,126 |
$41.37 - 50.68 |  | 1,750 |  |  | 1.81 |  | 41.59 |  |  | 14 |
Total |  | 538,949 |  |  | 5.81 |  | $ | 21.58 |  |  | $ | 12,842 |
The following is a summary of stock options vested and exercisable as of December 31, 2018:
|  |  |  | Weighted Average |  | Weighted |  |
Range of |  | Number |  | Remaining |  | Average |  |
Exercise |  | of |  | Contractual |  | Exercise |  | Intrinsic
Prices |  | Shares |  | Life |  | Price |  | Value
|  |  |  |  |  |  |  | (in thousands)
$5.67 - 32.80 |  | 456,223 |  |  | 5.72 |  | $ | 20.25 |  |  | $ | 6,757 |
$32.85 - 34.10 |  | 42,552 |  |  | 7.47 |  | 33.95 |  |  | 47 |
$34.15 - 42.94 |  | 17,202 |  |  | 8.30 |  | 35.19 |  |  | 7 |
Total |  | 515,977 |  |  | 5.95 |  | $ | 21.88 |  |  | $ | 6,811 |
A summary of option activity under the plans is as follows:
|  |  | Weighted Average Exercise
Options | Shares |  | Price
Outstanding at December 31, 2019 | 3,627,047 |  |  | $ | 36.32 |
Granted | 1,053,302 |  |  | 45.13 |
Exercised | (644,850) |  |  | 33.21 |
Forfeited or Expired | (282,554) |  |  | 40.64 |
Outstanding at December 31, 2020 | 3,752,945 |  |  | $ | 39.00 |
Exercisable at December 31, 2020 | 740,321 |  |  | $ | 31.85 |
The total pre-tax compensation cost related to unvested stock options not yet recognized as of December 31, 2020 is $20.8 million and is expected to be recognized over a weighted-average period of 2.96 years. The total intrinsic value of options exercised during the years ended December 31, 2020, 2019, and 2018 was $15.5 million, $8.1 million, and $5.4 million, respectively. The cash received from options exercised during the year ended December 31, 2020, 2019, and 2018 was $21.4 million, $12.6 million, and $5.0 million, respectively. The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows. A summary of the unvested restricted stock awards is as follows:
|  |  | Weighted Average Grant date
Restricted stock | Shares |  | Fair Value
Unvested at December 31, 2019 | 267,484 |  |  | $ | 34.42 |
Granted | 76,148 |  |  | 43.54 |
Vested | (110,075) |  |  | 32.55 |
Forfeited | (8,866) |  |  | 39.72 |
Unvested at December 31, 2020 | 224,691 |  |  | $ | 38.22 |
At December 31, 2020, unrecognized compensation cost related to unvested restricted stock awards was approximately $4.7 million which is expected to be recognized over a weighted average period of 2.70 years. A summary of share-based compensation is as follows for the years ended December 31, 2020, 2019, and 2018:
| 2020 |  | 2019 |  | 2018
Grant date fair value of awards during the period: | (in thousands)
Options | $ | 12,615 |  |  | $ | 20,442 |  |  | $ | 12,932 |
Restricted stock | 3,316 |  |  | 4,631 |  |  | 3,609 |
Total | $ | 15,931 |  |  | $ | 25,073 |  |  | $ | 16,541 |
| 2020 |  | 2019 |  | 2018
Share-based compensation expense: | (in thousands)
Options | $ | 8,312 |  |  | $ | 9,145 |  |  | $ | 5,344 |
Restricted stock | 3,030 |  |  | 2,654 |  |  | 2,518 |
Total | $ | 11,342 |  |  | $ | 11,799 |  |  | $ | 7,862 |
| 2020 |  | 2019 |  | 2018
Income tax benefit related to share-based compensation: | (in thousands)
Options | $ | 2,698 |  |  | $ | 1,197 |  |  | $ | 980 |
Restricted stock | 519 |  |  | 575 |  |  | 353 |
Total | $ | 3,217 |  |  | $ | 1,772 |  |  | $ | 1,333 |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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