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Share-Based Payments | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
Share-Based Payments | Share-Based Payments Stock Compensation Expense Stock-based compensation expense arising from our employee stock purchase plan and share-based compensation plans, recognized within operating expenses in the consolidated statements of income, amounted to $0.8 million and $1.3 million for the three months ended September 30, 2021 and 2020, respectively, and $6.4 million and $5.3 million for the nine months ended September 30, 2021 and 2020, respectively. Stock Awards. We grant restricted stock awards to members of our Board of Directors and restricted stock units to our employees. The awards vest, depending on award type and recipient, either ratably over periods of three and four years or cliff vest after four years. Vesting is accelerated in certain circumstances, including on retirement. Restricted stock awards granted to members of the Board of Directors are issued and outstanding on grant and carry the same voting and dividend rights of unrestricted outstanding common stock. Restricted stock units are not issued or outstanding on grant and do not provide for voting or dividend rights. Certain restricted stock unit award recipients are eligible to receive dividend equivalent payments during the vesting period, subject to forfeiture under the terms of the agreement. The grant date fair value of each stock award is determined based on the market price of our common stock on the date of grant adjusted to exclude the value of dividends for those awards that do not receive dividend or dividend equivalent payments during the vesting period. The following is a summary of stock award activity for the nine months ended September 30, 2021:
| Shares |  | Weighted Average Grant-Date Fair Value
Nonvested, January 1, 2021 | 128,664 |  |  | $ | 44.30 |
Granted | 57,650 |  |  | 43.10 |
Vested | (47,646) |  |  | 42.98 |
Forfeited | (2,075) |  |  | 40.95 |
Nonvested, September 30, 2021 | 136,593 |  |  | $ | 44.30 |
The fair value of vested awards was $2.1 million and $2.8 million during the nine months ended September 30, 2021 and 2020. Stock Performance Awards. Stock performance awards are granted to executive officers and certain other key employees. The awards vest at the end of a three-year performance period. The number of common shares awarded, if any, at the end of the performance period ranges from zero to 150% of the target amount based on two performance measures: i) total shareholder return relative to a peer group and ii) return on equity. The awards have no voting or dividend rights during the vesting period. Vesting of the awards is accelerated in certain circumstances, including on retirement. The amount of common shares awarded on an accelerated vesting is based either on actual performance at the end of the performance period or the amount of common shares earned at target. The grant date fair value of stock performance awards granted during the nine months ended September 30, 2021 and 2020 was determined using a Monte Carlo fair value simulation model incorporating the following assumptions:
| 2021 |  | 2020
Risk-free interest rate | 0.18 | % |  | 1.42 | %
Expected term (in years) | 3.00 |  | 3.00
Expected volatility | 32.00 | % |  | 19.00 | %
Dividend yield | 3.60 | % |  | 2.80 | %
The risk-free interest rate was derived from yields on U.S. government bonds of a similar term. The expected term of the award is equal to the three-year performance period. Expected volatility was estimated based on actual historical volatility of our common stock. Dividend yield was estimated based on historic and future yield estimates. The following is a summary of stock performance award activity for the nine months ended September 30, 2021 (share amounts reflect awards at target):
| Shares |  | Weighted Average Grant-Date Fair Value
Nonvested, January 1, 2021 | 164,600 |  |  | $ | 42.32 |
Granted | 79,000 |  |  | 38.34 |
Vested | (54,000) |  |  | 35.73 |
Forfeited | — |  |  | — |
Nonvested, September 30, 2021 | 189,600 |  |  | $ | 42.54 |
The fair value of vested awards was $2.5 million and $3.4 million during the nine months ended September 30, 2021 and 2020.

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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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