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Stock-Based Compensation Plans
 3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans

NOTE 13 – STOCK-BASED COMPENSATION PLANS

The Company grants stock options and stock equivalent units (“SEUs”) from time to time as a long-term performance incentive. In certain cases the grants are subject to performance conditions such as the Company’s stock price. Where performance conditions apply the Monte Carlo simulation model is used to determine the fair values. Otherwise the Black-Scholes model is used to determine the fair values.

 

Stock option plans

The following table summarizes the transactions of the Company’s stock option plans for the three months ended March 31, 2017:

 

     Number of
Options		      Weighted
Average
Exercise
Price		      Weighted
Average
Grant-Date
Fair Value		  

Outstanding at December 31, 2016

      570,994      $ 20.38      $ 21.68  

Granted - at discount

      76,664      $ 0.00      $ 62.22  

      - at market value

      18,843      $ 70.60      $ 16.84  

Exercised

      (72,994 )     $ 12.92      $ 24.77  

Forfeited

      (2,281 )     $ 9.62      $ 24.60  
  

 

 

        

Outstanding at March 31, 2017

      591,226      $ 20.30      $ 26.43  
  

 

 

        

At March 31, 2017, there were 51,265 stock options that were exercisable, of which 11,695 had performance conditions attached.

The stock option compensation cost for the first three months of 2017 was $1.0 million (2016 – $0.9 million). The total intrinsic value of options exercised in the first three months of 2017 was $1.8 million (2016 – $1.5 million).

The total compensation cost related to non-vested stock options not yet recognized at March 31, 2017 was $9.1 million and this cost is expected to be recognized over the weighted-average period of 2.40 years.

Stock equivalent units

The following table summarizes the transactions of the Company’s SEUs for the three months ended March 31, 2017:

 

     Number
of SEUs		      Weighted
Average
Exercise
Price		      Weighted
Average
Grant-Date
Fair Value		  

Outstanding at December 31, 2016

      279,815      $ 3.77      $ 33.40  

Granted - at discount

      174,249      $ 0.00      $ 62.83  

      - at market value

      5,530      $ 70.60      $ 16.84  

Exercised

      (29,989 )     $ 6.21      $ 26.38  

Forfeited

      (11,775 )     $ 0.00      $ 32.69  
  

 

 

        

Outstanding at March 31, 2017

      417,830      $ 3.02      $ 45.97  
  

 

 

        

At March 31, 2017 there were 59,624 SEUs that are exercisable, of which 54,256 had performance conditions attached.

The charges for SEUs are spread over the life of the award subject to a revaluation to fair value each quarter. The revaluation may result in a charge or a credit to the income statement in the quarter dependent upon our share price and other performance criteria.

 

The SEU compensation cost for the first three months of 2017 was $0.9 million (2016 – a credit of $1.0 million). The total intrinsic value of SEUs exercised in the first three months of 2017 was $0.9 million (2016 - $1.1 million).

The weighted-average remaining vesting period of non-vested SEUs is 2.04 years.