Stock-based Compensation

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

During the three and nine months ended September 30, 2019 and 2018, we recognized expenses of $4.2 million, $9.5 million, $9.4 million and $27.5 million, respectively, for stock-based compensation, which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized tax benefits of $0.4 million, $1.5 million, $1.8 million and $5.2 million for the three and nine months ended September 30, 2019 and 2018, respectively.

2019 Activity

During 2019, we granted non-qualified service-based stock options, restricted stock units and performance share units to certain employees and directors. All awards were granted under the Company's Amended and Restated 2014 Incentive Award Plan. The performance share units are subject to certain performance and market conditions, in addition to the service-based vesting conditions. A summary of award activity by type for the nine months ended September 30, 2019 is presented below.



Stock Options	Awards (in millions)		Weighted- Average Exercise Price		Aggregate Intrinsic Value (in millions)		Weighted Average Remaining Contractual Life (years)
Outstanding at January 1, 2019	7.2		$	19.32
Granted	0.8		26.91
Exercised	(3.6	)	12.63
Forfeited	(0.8	)	28.94
Outstanding at September 30, 2019	3.6		$	25.77
Vested and expected to vest at September 30, 2019	3.6		$	25.77	$	17.6	6.12
Exercisable at September 30, 2019	2.5		$	24.84	$	15.3	5.02

Cash received by the Company upon exercise of options for the nine months ended September 30, 2019 was $46.0 million. Excess tax benefits on these exercises were $11.3 million.

At September 30, 2019, there is $3.9 million of unrecognized expense relating to unvested stock options that is expected to be amortized over a weighted average period of 1.5 years.



Restricted Stock Awards and Restricted Stock Units	Awards/Units (millions)		Weighted-Average Fair Value
Outstanding at January 1, 2019	1.6		$	29.12
Granted	0.7		26.98
Vested	(0.7	)	28.53
Forfeited	(0.4	)	28.56
Outstanding at September 30, 2019	1.2		$	28.38

Tax shortfall expenses on the vesting of restricted stock and restricted stock units during the nine months ended September 30, 2019 was $0.3 million.

At September 30, 2019, there is $16.4 million of unamortized expense relating to unvested restricted stock and restricted stock units that is expected to be amortized over a weighted average period of 1.5 years.



Performance Stock Awards and Performance Share Units	Awards/Units (millions)		Weighted-Average Fair Value
Outstanding at January 1, 2019	0.8		$	31.82
Granted	0.3		29.10
Vested	—		—
Forfeited	(0.6	)	30.38
Outstanding at September 30, 2019	0.5		$	32.11

At September 30, 2019, there is $8.2 million of unamortized expense relating to unvested performance stock awards and performance share units that is expected to be amortized over a weighted average period of 2.1 years. The forfeitures include performance stock awards and performance share units that did not meet the performance target required for vesting.