XML 38 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Share-Based Compensation
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Share-Based Incentive Compensation Plans
Under the Company's 2017 Omnibus Incentive Compensation Plan, effective as of June 7, 2017, there were 1,396,183 shares of common stock available for grant as of December 31, 2019.
Share-Based Compensation Expense
The table below reflects the total share-based compensation expense recognized in our Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 and 2017.
 
2019
 
2018
 
2017
 
 
 
Restricted
 
 
 
Restricted
 
 
 
Restricted
Income Statement Classification
Options (1)
 
Shares (2)
 
Options (1)
 
Shares (2)
 
Options (1)
 
Shares (2)
Direct cost of revenues
$
497

 
$
11,869

 
$
780

 
$
9,804

 
$
370

 
$
9,691

Selling, general and administrative expenses
2,628

 
9,005

 
2,027

 
8,191

 
1,207

 
4,870

Special charges

 

 

 

 

 
269

Total
$
3,125

 
$
20,874

 
$
2,807

 
$
17,995

 
$
1,577

 
$
14,830

 
(1) 
Includes options and cash-settled stock appreciation rights.
(2) 
Includes restricted share awards, restricted stock units, performance stock units and cash-settled restricted stock units.
Stock Options
We did not grant any options during the years ended December 31, 2019 and 2018. We used the Black-Scholes option-pricing model to determine the fair value of our option grants during the year ended December 31, 2017 using the assumptions in the table below.
 
 
Year Ended December 31,
Assumptions
 
2017
Risk-free interest rate
 
1.60%
Dividend yield
 
—%
Expected term
 
3 years
Stock price volatility
 
31.94%

A summary of our stock option activity during the year ended December 31, 2019 is presented below. The aggregate intrinsic value of stock options outstanding and exercisable, or fully vested, at December 31, 2019 in the table below represents the total pre-tax intrinsic value, which is calculated as the difference between the closing price of our common stock on the last trading day of 2019 and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on December 31, 2019. The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock. 
 
Options
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term
(in Years)
 
Aggregate
Intrinsic
Value
Stock options outstanding at December 31, 2018
935

 
$
36.50

 
 
 
 
Stock options granted

 
N/A

 
 
 
 
Stock options exercised
(256
)
 
$
37.88

 
 
 
 
Stock options forfeited
(1
)
 
$
30.28

 
 
 
 
Stock options outstanding at December 31, 2019
678

 
$
35.98

 
4.7
 
$
50,669

Stock options exercisable at December 31, 2019
605

 
$
35.75

 
4.6
 
$
45,343


Cash received from option exercises for the years ended December 31, 2019, 2018 and 2017 was $9.7 million, $41.6 million and $4.1 million, respectively. The tax benefit realized from stock options exercised totaled $0.7 million, $4.0 million and $1.1 million for the years ended December 31, 2019, 2018 and 2017, respectively.
The intrinsic value of stock options exercised is the amount by which the market value of our common stock on the exercise date exceeds the exercise price. The total intrinsic value of stock options exercised for the years ended December 31, 2019, 2018 and 2017 was $13.2 million, $26.4 million and $0.9 million, respectively.
The following is a summary of stock options outstanding and exercisable as of December 31, 2019
 
Options Outstanding
 
Options Exercisable
 
 
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term (in Years)
 
 
 
Weighted Average Exercise Price
Exercise Price Range
Options
 
 
 
Shares
 
$26.68-$33.95
137

 
$
31.46

 
3.7
 
124

 
$
31.53

$34.33-$34.62
138

 
$
34.40

 
5.4
 
138

 
$
34.40

$35.73-$36.87
195

 
$
36.67

 
4.4
 
188

 
$
36.68

$36.89-$40.36
202

 
$
39.28

 
5.4
 
149

 
$
39.12

$41.69-$41.69
6

 
$
41.69

 
0.3
 
6

 
$
41.69

 
678

 
 
 
 
 
605

 
 

As of December 31, 2019, there was $0.1 million of unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized ratably over a weighted average period of 0.2 years.
Restricted Share Awards
A summary of our restricted share activity during the year ended December 31, 2019 is presented below.
 
Shares
 
Weighted
Average Grant
Date Fair
Value
Unvested restricted share awards outstanding at December 31, 2018
992

 
$
43.76

Restricted share awards granted
222

 
$
81.64

Restricted share awards vested
(229
)
 
$
43.04

Restricted share awards forfeited
(28
)
 
$
38.87

Unvested restricted share awards outstanding at December 31, 2019
957

 
$
52.86


As of December 31, 2019, there was $27.5 million of unrecognized compensation cost related to unvested restricted share awards. That cost is expected to be recognized ratably over a weighted average period of 4.0 years. The total fair value of restricted share awards that vested during the years ended December 31, 2019, 2018 and 2017 was $18.6 million, $10.4 million and $9.9 million, respectively.
Restricted Stock Units
A summary of our restricted stock units activity during the year ended December 31, 2019 is presented below.
 
Shares
 
Weighted
Average Grant
Date Fair
Value
Restricted stock units outstanding at December 31, 2018
335

 
$
39.72

Restricted stock units granted
30

 
$
82.39

Restricted stock units released
(52
)
 
$
42.15

Restricted stock units forfeited

 
N/A

Restricted stock units outstanding at December 31, 2019
313

 
$
43.45


As of December 31, 2019, there was $0.8 million of unrecognized compensation cost related to unvested restricted stock units. That cost is expected to be recognized ratably over a weighted average period of 2.8 years. The total fair value of restricted stock units released for the years ended December 31, 2019, 2018 and 2017 was $4.5 million, $5.4 million and $4.1 million, respectively.
Performance Stock Units
Performance stock units represent common stock potentially issuable in the future, subject to achievement of either market or performance conditions. Our current outstanding performance stock units that are subject to market conditions vest based on the adjusted total shareholder return of the Company as compared with the adjusted total shareholder return of the Standard & Poor’s 500 Index over the applicable performance period. Our current outstanding performance stock units that are subject to performance conditions vest based on Adjusted EBITDA metrics over the applicable performance period. The vesting and payout for all of our performance stock units typically range between 0% and up to 150% of the target number of shares granted at the end of a two- or three-year performance period.
A summary of our performance stock units activity during the year ended December 31, 2019 is presented below.
 
Shares
 
Weighted
Average Grant
Date Fair
Value
Performance stock units outstanding at December 31, 2018
275

 
$
42.60

Performance stock units granted (1)
170

 
$
77.67

Performance stock units released
(84
)
 
$
35.75

Performance stock units forfeited

 
N/A

Performance stock units outstanding at December 31, 2019
361

 
$
60.67


 
(1) 
Performance stock units granted are presented at the maximum potential payout percentage of 150% of target shares granted.
As of December 31, 2019, there was $6.3 million of unrecognized compensation cost related to unvested performance stock units. That cost is expected to be recognized ratably over a weighted average period of 1.1 years. The total fair value of performance stock units that released during the years ended December 31, 2019 and 2018 was $5.8 million and $1.4 million, respectively. There were no performance stock units that released during the year ended December 31, 2017.
The table below reflects the weighted average grant date fair value per share of stock options, restricted share awards, restricted stock units and performance stock units awarded during the years ended December 31, 2019, 2018 and 2017. The fair value of our stock options is calculated using the Black-Scholes option-pricing model. The fair value of our restricted stock awards, restricted stock units and our performance stock units that are subject to performance conditions is determined based on the closing market price per share of our common stock on the grant date. The fair value of our performance stock units that are subject to market conditions reflects the market conditions as of the grant date using a Monte Carlo simulation.
 
Year Ended December 31,
 
2019
 
2018
 
2017
Weighted average fair value of grants
 
 
 
 
 
Stock options
$

 
$

 
$
9.56

Restricted share awards, restricted stock units and performance stock
   units
$
80.10

 
$
51.73

 
$
38.88