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Stock-Based Compensation Plans
 6 Months Ended
Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans
NOTE 14 – 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 six months ended June 30, 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
   
12,632
    $
81.07
    $
22.69
 
Exercised
   
(79,916
)   $
14.67
    $
27.42
 
Forfeited
   
(9,122
)   $
32.39
    $
40.47
 
                         
Outstanding at June 30, 2019
   
536,073
    $
32.13
    $
41.43
 
                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At June 30, 2019, there were 39,325 stock options that were exercisable, of which 6,530 had performance conditions attached.
The stock option compensation cost for the first six months of 2019 was $3.2 million (first six months of 2018 – $1.9 million). The total intrinsic value of options exercised in the first six months of 2019 was $2.7 million (first six months of 2018 – $2.2 million).
The total compensation cost related to
non-vested
stock options not yet recognized at June 30, 2019 was $12.2 million and this cost is expected to be recognized over the weighted-average period of 2.12 years.
Stock equivalent units
The following table summarizes the transactions of the Company’s SEUs for the six months ended June 30, 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
   
121,815
    $
0.00
    $
71.36
 
      - at market value
   
4,359
    $
81.07
    $
22.69
 
Exercised
   
(129,096
)   $
2.44
    $
46.95
 
Forfeited
   
(1,500
)   $
11.57
    $
48.13
 
                         
Outstanding at June 30 2019
   
414,514
    $
3.55
    $
59.42
 
                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At June 30, 2019 there were 38,488 SEUs that are exercisable, of which 35,720 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 six months of 2019 was $11.8 million (first six months of 2018 – $5.3 million). The total intrinsic value of SEUs exercised in the first six months of 2019 was $7.1 million (first six months of 2018 – $2.4 million).
The weighted-average remaining vesting period of
non-vested
SEUs is
2.20
years.