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EQUITY | 12 Months Ended
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Dec. 31, 2019
Equity [Abstract] |
EQUITY | EQUITY At December 31, 2019, the Company had authorization to purchase $1.0 billion shares of common stock under the share repurchase program and has $489.8 million remaining under this program. Share repurchases will be made through open market purchases, Rule 10b5-1 plans, accelerated share repurchase transactions and other structured share repurchases, privately negotiated transactions or other transactions in such amounts and at such times as the Company deems appropriate based upon prevailing market and business conditions and other factors. For the years ended December 31, 2019, 2018 and 2017, the Company repurchased outstanding shares of common stock at a cost of $260.0 million, $250.2 million and $400.3 million, respectively. For the years ended December 31, 2019, 2018 and 2017, the Company received proceeds of $108.9 million, $28.0 million and $82.3 million, respectively, primarily as a result of stock options exercised in the amount of 2.7 million, 1.0 million and 2.3 million in each of the years, respectively. It is the Company’s practice to issue shares from treasury stock when options are exercised. Total outstanding shares of common stock and treasury stock were as follows:
(in millions) |  | Shares of Common Stock |  | Shares of Treasury Stock |  | Outstanding Shares
Balance at December 31, 2016 |  | 264.5 |  |  | (34.4) |  |  | 230.1 |
Shares of treasury stock issued |  | — |  |  | 2.9 |  |  | 2.9 |
Repurchase of common stock at an average cost of $64.40 |  | — |  |  | (6.2) |  |  | (6.2) |
Balance at December 31, 2017 |  | 264.5 |  |  | (37.7) |  |  | 226.8 |
Shares of treasury stock issued |  | — |  |  | 1.6 |  |  | 1.6 |
Repurchase of common stock at an average cost of $45.92 |  | — |  |  | (5.4) |  |  | (5.4) |
Balance at December 31, 2018 |  | 264.5 |  |  | (41.5) |  |  | 223.0 |
Shares of treasury stock issued |  | — |  |  | 3.1 |  |  | 3.1 |
Repurchase of common stock at an average cost of $54.18 |  | — |  |  | (4.8) |  |  | (4.8) |
Balance at December 31, 2019 |  | 264.5 |  |  | (43.2) |  |  | 221.3 |
The Company maintains the 2016 Omnibus Incentive Plan (the “Plan”) under which it may grant non-qualified stock options (“NQSOs”), incentive stock options, restricted stock, RSUs and stock appreciation rights, collectively referred to as “Awards.” Awards are granted at exercise prices that are equal to the closing stock price on the date of grant. The Company authorized grants under the Plan of 25.0 million shares of common stock, plus any unexercised portion of canceled or terminated stock options granted under the legacy DENTSPLY International Inc. 2010 and 2002 Equity Incentive Plans, as amended, and under the legacy Sirona Dental Systems, Inc. 2015 and 2006 Equity Incentive Plans, as amended. For each restricted stock and RSU issued, it is counted as a reduction of 3.09 shares of common stock available to be issued under the Plan. No key employee may be granted awards in excess of 1.0 million shares of common stock in any calendar year. The number of shares available for grant under the 2016 Plan at December 31, 2019 is 27.0 million. Total stock based compensation expense and the tax related benefit were as follows:
|  | Year End December 31, |  |  |  |
(in millions) |  | 2019 |  | 2018 |  | 2017
Stock option expense |  | $ | 7.1 |  |  | $ | 6.6 |  |  | $ | 15.4 |
RSU expense |  | 57.8 |  |  | 13.2 |  |  | 31.2 |
Total stock based compensation expense |  | $ | 64.9 |  |  | $ | 19.8 |  |  | $ | 46.6 |
Related deferred income tax benefit |  | $ | 8.4 |  |  | $ | 2.4 |  |  | $ | 8.4 |
For the years ended December 31, 2019, 2018, and 2017, stock compensation expense of $64.9 million, $19.8 million and $46.6 million, respectively, was recorded in the Consolidated Statements of Operations. For the years ended December 31, 2019, 2018, and 2017, $63.0 million, $18.0 million and $45.7 million, respectively, was recorded in Selling, general and administrative expense and $1.9 million, $0.7 million and $0.7 million, respectively, was recorded in Cost of products sold. For the years ended December 31, 2018 and 2017, the Company recorded $1.1 million and $0.2 million, respectively, in Restructuring and other costs in the Consolidated Statements of Operations. For the years ended December 31, 2019 and 2018, the Company lowered the likely payout level on certain performance-based grants. There were 1.1 million non-qualified stock options unvested at December 31, 2019. The remaining unamortized compensation cost related to non-qualified stock options is $7.9 million, which will be expensed over the weighted average remaining vesting period of the options, or 1.9 years. The unamortized compensation cost related to RSUs is $58.0 million, which will be expensed over the remaining weighted average restricted period of the RSUs, or 3.0 years. The Company uses the Black-Scholes option-pricing model to estimate the fair value of each option awarded. The average assumptions used to determine compensation cost for the Company’s NQSOs issued were as follows:
|  | Year End December 31, |  |  |  |
|  | 2019 |  | 2018 |  | 2017
Weighted average fair value per share |  | $ | 12.20 |  |  | $ | 12.38 |  |  | $ | 13.83 |
Expected dividend yield |  | 0.71 | % |  | 0.64 | % |  | 0.57 | %
Risk-free interest rate |  | 2.36 | % |  | 2.72 | % |  | 2.11 | %
Expected volatility |  | 22.6 | % |  | 19.7 | % |  | 20.0 | %
Expected life (years) |  | 6.00 |  | 6.07 |  | 5.95
The total intrinsic value of options exercised for the years ended December 31, 2019, 2018 and 2017 was $37.3 million, $21.5 million and $65.2 million, respectively. The total fair value of shares vested for the years ended December 31, 2019, 2018 and 2017 was $43.7 million, $47.8 million and $44.7 million, respectively. The NQSO transactions for the year ended December 31, 2019 were as follows:
|  | Outstanding |  |  |  |  |  | Exercisable |  |  |  |
(in millions, except per share amounts) |  | Shares |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value |  | Shares |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value
December 31, 2018 |  | 6.4 |  |  | $ | 46.80 |  |  | $ | 4.5 |  |  | 5.0 |  |  | $ | 43.98 |  |  | $ | 4.5 |
Granted |  | 0.6 |  |  | 49.71 |  |  |  |  |  |  |  |  |
Exercised |  | (2.7) |  |  | 40.34 |  |  |  |  |  |  |  |  |
Cancelled |  | (0.4) |  |  | 61.38 |  |  |  |  |  |  |  |  |
Forfeited |  | (0.1) |  |  | 59.59 |  |  |  |  |  |  |  |  |
December 31, 2019 |  | 3.8 |  |  | $ | 50.02 |  |  | $ | 28.1 |  |  | 2.7 |  |  | $ | 48.85 |  |  | $ | 23.2 |
The weighted average remaining contractual term of all outstanding options is 5.4 years and the weighted average remaining contractual term of exercisable options is 4.1 years. Information about NQSOs outstanding for the year ended December 31, 2019 were as follows:
|  |  |  | Outstanding |  |  |  |  |  | Exercisable |  |
|  |  |  | Number Outstanding at December 31, 2019 |  | Weighted Average Remaining Contractual Life (in years) |  | Weighted Average Exercise Price |  | Number Exercisable at December 31, 2019 |  | Weighted Average Exercise Price
Range of Exercise Prices |  |  |  |  |  |  |  |  |  |  |  |
(in millions, except per share amounts and life) |  |  |  |  |  |  |  |  |  |  |  |
30.01 |  | - | 40.00 |  |  | 0.5 |  |  | 2.0 |  | $ | 37.50 |  |  | 0.5 |  |  | $ | 37.51 |
40.01 |  | - | 50.00 |  |  | 1.4 |  |  | 5.9 |  | 46.19 |  |  | 0.9 |  |  | 44.24 |
50.01 |  | - |  | 60.00 |  |  | 1.3 |  |  | 6.3 |  | 54.84 |  |  | 0.8 |  |  | 54.36 |
60.01 |  | - | 70.00 |  |  | 0.6 |  |  | 5.4 |  | 62.13 |  |  | 0.5 |  |  | 62.08 |
|  |  |  | 3.8 |  |  | 5.4 |  | $ | 50.02 |  |  | 2.7 |  |  | $ | 48.85 |
The unvested RSU transactions for the year ended December 31, 2019 were as follows:
|  | Unvested Restricted Stock Units |  |
|  | Shares |  | Weighted Average Grant Date Fair Value
(in millions, except per share amounts) |  |  |  |
Unvested at December 31, 2018 |  |  | 1.5 |  |  | $ | 56.93 |
Granted |  | 3.7 |  |  | 45.69 |
Vested |  | (0.4) |  |  | 54.60 |
Forfeited |  | (0.3) |  |  | 55.99 |
Unvested at December 31, 2019 |  |  | 4.5 |  |  | $ | 47.79 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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