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.

The following table summarizes the transactions of the Company’s stock option plans for the three months ended March 31, 2019:

	Number of Options			Weighted Average Exercise Price		Weighted Average Grant-Date Fair Value
Outstanding at December 31, 2018		545,249		$	32.46	$	36.06
Granted - at discount		67,230		$	0.00	$	71.54
- at market value		12,539		$	81.07	$	22.69
Exercised		(70,632	)	$	13.78	$	27.78
Forfeited		(1,584	)	$	62.39	$	26.57
Outstanding at March 31, 2019		552,802		$	31.92	$	41.16

At March 31, 2019, there were 45,170 stock options that were exercisable, of which 6,592 had performance conditions attached.

The stock option compensation cost for the first three months of 2019 was $1.6 million (first three months of 2018 – $0.8 million). The total intrinsic value of options exercised in the first three months of 2019 was $2.1 million (first three months of 2018 – $1.9 million).

The total compensation cost related to non-vested stock options not yet recognized at March 31, 2019 was $14.1 million and this cost is expected to be recognized over the weighted-average period of 2.32 years.

The following table summarizes the transactions of the Company’s SEUs for the three months ended March 31, 2019:


	Number of SEUs			Weighted Average Exercise Price		Weighted Average Grant-Date Fair Value
Outstanding at December 31, 2018		418,936		$	3.47	$	52.45
Granted - at discount		119,315		$	0.00	$	71.70
- at market value		4,359		$	81.07	$	22.69
Exercised		(118,772	)	$	2.42	$	47.35
Forfeited		(750	)	$	0.00	$	51.05
Outstanding at March 31, 2019		423,088		$	3.59	$	59.01

At March 31, 2019, there were 41,312 SEUs that are exercisable, of which 37,920 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 2019 was $7.5 million (first three months of 2018 – $1.2 million). The total intrinsic value of SEUs exercised in the first three months of 2019 was $6.2 million (first three months of 2018 - $1.6 million).