XML 74 R13.htm IDEA: XBRL DOCUMENT
v3.19.3

Stock-Based Compensation Plans | 9 Months Ended
--- | ---
Sep. 30, 2019
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Employee Stock Purchase Plan Shares issued under the 2017 Employee Stock Purchase Plan during the nine months ended September 30, 2019 and 2018, totaled 92,765 and 112,549, respectively. Stock Options A summary of stock option activity is as follows:
| Number of Shares |  | Weighted Average Exercise Price ($) |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value of In-the-Money Options ($)
Outstanding as of December 31, 2018 | 4,864,836 |  |  | $ | 17.76 |  |  |  |  |
Exercised | (419,928 | ) |  | 15.90 |  |  |  |  |
Forfeited | (3,496 | ) |  | 17.89 |  |  |  |  |
Outstanding as of September 30, 2019 | 4,441,412 |  |  | $ | 17.93 |  |  | 5.52 |  | $ | 59,471,161 |
Exercisable as of September 30, 2019 | 3,897,260 |  |  | $ | 17.61 |  |  | 5.29 |  | $ | 53,440,113 |
The weighted average grant date fair value of stock options granted during the nine months ended September 30, 2018, was $7.03. The total intrinsic value of stock options exercised during the nine months ended September 30, 2019 and 2018, was $6.9 million and $13.6 million, respectively. There were no stock options granted during the nine months ended September 30, 2019. The fair value of options granted during the nine months ended September 30, 2018, were estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, Compensation – Stock Compensation (“ASC 718”), with the following weighted average assumptions:
| Nine Months Ended September 30, 2018
Expected life (years) | 5.6 |
Risk-free interest rate | 2.7 | %
Expected volatility | 26.4 | %
Expected dividend yield | — |
Expected volatilities are based on the Company’s historical common stock volatility, derived from historical stock price data for periods commensurate with the options’ expected life. The expected life of the options granted represents the period of time options are expected to be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero coupon bonds issued with a term equal to the expected life at the date of grant of the options. The expected dividend yield is zero, as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future. Long-term Incentive Program Performance Share Awards A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) is as follows:
| Number of Shares at Expected Attainment |  | Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2018 | 540,697 |  |  | $ | 19.83 |
Forfeited | (23,029 | ) |  | 20.12 |
Change in attainment | 377,557 |  |  | 20.22 |
Nonvested as of September 30, 2019 | 895,225 |  |  | $ | 19.99 |
During the nine months ended September 30, 2019, the Company revised the expected attainment rates for all outstanding LTIP performance shares due to changes in forecasted sales and operating income, resulting in additional stock-based compensation expense of approximately $6.0 million for the nine months ended September 30, 2019. Restricted Share Awards A summary of nonvested restricted share awards (“RSAs”) is as follows:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2018 | 213,337 |  |  | $ | 20.21 |
Vested | (106,610 | ) |  | 20.17 |
Forfeited | (10,934 | ) |  | 20.12 |
Nonvested as of September 30, 2019 | 95,793 |  |  | $ | 20.21 |
During the nine months ended September 30, 2019, a total of 106,610 RSAs vested. The Company withheld 32,371 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. Total Shareholder Return Awards A summary of nonvested total shareholder return awards (“TSRs”) is as follows:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2018 | 718,931 |  |  | $ | 29.25 |
Granted | 436,674 |  |  | 47.90 |
Forfeited | (27,567 | ) |  | 37.22 |
Nonvested as of September 30, 2019 | 1,128,038 |  |  | $ | 36.27 |
The fair value of TSRs granted during the nine months ended September 30, 2019 and 2018, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, using the following weighted average assumptions:
| Nine Months Ended September 30,
| 2019 |  | 2018
Expected life (years) | 2.8 |  |  | 2.9 |
Risk-free interest rate | 2.5 | % |  | 2.4 | %
Expected volatility | 29.3 | % |  | 28.0 | %
Expected dividend yield | — |  |  | — |
Restricted Share Units A summary of nonvested restricted share unit awards (“RSUs”) is as follows:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2018 | 651,045 |  |  | $ | 23.82 |
Granted | 687,302 |  |  | 33.05 |
Vested | (259,634 | ) |  | 24.16 |
Forfeited | (36,588 | ) |  | 27.94 |
Nonvested as of September 30, 2019 | 1,042,125 |  |  | $ | 29.68 |
During the nine months ended September 30, 2019, a total of 259,634 RSUs vested. The Company withheld 57,802 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. As of September 30, 2019, there were unrecognized compensation costs of $23.9 million related to nonvested RSUs, $23.2 million related to nonvested TSRs, $2.4 million related to nonvested LTIP performance shares, $0.8 million related to nonvested RSAs, and $0.5 million related to nonvested stock options, which the Company expects to recognize over weighted average periods of 1.6 years, 1.9 years, 0.5 years, 0.4 years, and 0.5 years, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2019 and 2018, of $9.3 million and $6.5 million, respectively, with corresponding tax benefits of $1.5 million during each quarter. The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2019 and 2018, of $30.3 million and $20.6 million, respectively, with the corresponding tax benefits of $5.5 million and $3.6 million, respectively.

X
- 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
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration