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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2019
Stock-Based Compensation [Abstract] |
Stock-Based Compensation [Text Block] | Stock-Based Compensation We maintain long-term incentive plans for the benefit of certain employees and directors. Our plans consist of the Rent-A-Center, Inc. 2006 Long-Term Incentive Plan (the “2006 Plan”), the Rent-A-Center, Inc. 2006 Equity Incentive Plan (the “Equity Incentive Plan”), and the Rent-A-Center 2016 Long-Term Incentive Plan (the "2016 Plan") which are collectively known as the “Plans.” On March 9, 2016, upon the recommendation of the Compensation Committee, the Board adopted, subject to stockholder approval, the 2016 Plan and directed that it be submitted for the approval of the stockholders. On June 2, 2016, the stockholders approved the 2016 Plan. The 2016 Plan authorizes the issuance of a total of 6,500,000 shares of common stock. Any shares of common stock granted in connection with an award of stock options or stock appreciation rights will be counted against this limit as one share and any shares of common stock granted in connection with awards of restricted stock, restricted stock units, deferred stock or similar forms of stock awards other than stock options and stock appreciation rights will be counted against this limit as two shares of common stock for every one share of common stock granted in connection with such awards. No shares of common stock will be deemed to have been issued if (1) such shares covered by the unexercised portion of an option that terminates, expires, or is cancelled or settled in cash or (2) such shares are forfeited or subject to awards that are forfeited, canceled, terminated or settled in cash. In any calendar year, (1) no employee will be granted options and/or stock appreciation rights for more than 800,000 shares of common stock; (2) no employee will be granted performance-based equity awards under the 2016 Plan (other than options and stock appreciation rights), covering more than 800,000 shares of common stock; and (3) no employee will be granted performance-based cash awards for more than $5,000,000. At December 31, 2019 and 2018, there were 2,556,180 and 2,625,206 shares, respectively, allocated to equity awards outstanding in the 2016 Plan. The 2006 Plan authorizes the issuance of 7,000,000 shares of Rent-A-Center’s common stock that may be issued pursuant to awards granted under the 2006 Plan, of which no more than 3,500,000 shares may be issued in the form of restricted stock, deferred stock or similar forms of stock awards which have value without regard to future appreciation in value of or dividends declared on the underlying shares of common stock. In applying these limitations, the following shares will be deemed not to have been issued: (1) shares covered by the unexercised portion of an option that terminates, expires, or is canceled or settled in cash, and (2) shares that are forfeited or subject to awards that are forfeited, canceled, terminated or settled in cash. At December 31, 2019 and 2018, there were 450,531 and 1,022,482 shares, respectively, allocated to equity awards outstanding in the 2006 Plan. The 2006 Plan expired in accordance with its terms on March 24, 2016, and all shares remaining available for grant under the 2006 Plan were canceled. We acquired the Equity Incentive Plan (formerly known as the Rent-Way, Inc. 2006 Equity Incentive Plan) in conjunction with our acquisition of Rent-Way in 2006. There were 2,468,461 shares of our common stock reserved for issuance under the Equity Incentive Plan. There were 398,551 and 677,074 shares allocated to equity awards outstanding in the Equity Incentive Plan at December 31, 2019 and 2018, respectively. The Equity Incentive Plan expired in accordance with its terms on January 13, 2016, and all shares remaining available for grant under the Equity Incentive Plan were canceled. Options granted to our employees generally become exercisable over a period of 1 to 4 years from the date of grant and may be exercised up to a maximum of 10 years from the date of grant. Options granted to directors were immediately exercisable. We grant restricted stock units to certain employees that vest after a three-year service requirement has been met. We recognize expense for these awards using the straight-line method over the requisite service period based on the number of awards expected to vest. We also grant performance-based restricted stock units that vest between 0% and 200% depending on our stock performance against an index using a total shareholder return formula established at the date of grant for the subsequent three-year period. We record expense for these awards over the requisite service period, net of the expected forfeiture rate, since the employee must maintain employment to vest in the award. Stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017 is as follows:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Stock options | $ | 1,273 |  |  | $ | 1,388 |  |  | $ | 2,023 |
Restricted share units | 5,685 |  |  | 4,573 |  |  | 1,873 |
Total stock-based compensation expense | 6,958 |  |  | 5,961 |  |  | 3,896 |
Tax benefit recognized in the statements of earnings | 1,562 |  |  | 1,739 |  |  | 1,442 |
Stock-based compensation expense, net of tax | $ | 5,396 |  |  | $ | 4,222 |  |  | $ | 2,454 |
We issue new shares of stock to satisfy option exercises and the vesting of restricted stock units. The fair value of unvested options that we expect to result in compensation expense was approximately $3.5 million with a weighted average number of years to vesting of 2.93 at December 31, 2019. Information with respect to stock option activity related to the Plans for the year ended December 31, 2019 follows:
| Equity Awards Outstanding |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value (In thousands)
Balance outstanding at January 1, 2019 | 2,468,900 |  |  | $ | 19.37 |  |  |  |  |
Granted | 381,198 |  |  | 22.53 |  |  |  |  |
Exercised | (551,008 | ) |  | 12.36 |  |  |  |  |
Forfeited | (224,396 | ) |  | 10.54 |  |  |  |  |
Expired | (239,832 | ) |  | 30.96 |  |  |  |  |
Balance outstanding at December 31, 2019 | 1,834,862 |  |  | $ | 21.70 |  |  | 6.12 |  | $ | 4,464 |
Exercisable at December 31, 2019 | 973,036 |  |  | $ | 27.60 |  |  | 4.15 |  | $ | 4,469 |
The intrinsic value of options exercised during the years ended December 31, 2019, 2018, and 2017 was $5,137.0 thousand, $418.9 thousand, and $53.3 thousand, respectively, resulting in tax benefits of $1,798.0 thousand, $146.6 thousand, and $18.7 thousand, respectively, which are reflected as an outflow from operating activities and an inflow from financing activities in the consolidated statements of cash flows. The weighted average fair values of the options granted under the Plans were calculated using the Black-Scholes method. The weighted average grant date fair value and weighted average assumptions used in the option pricing models are as follows:
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Weighted average grant date fair value | $ | 8.92 |  |  | $ | 3.80 |  |  | $ | 2.92 |
Weighted average risk free interest rate | 2.07 | % |  | 2.51 | % |  | 1.78 | %
Weighted average expected dividend yield | 1.28 | % |  | — | % |  | 3.03 | %
Weighted average expected volatility | 50.93 | % |  | 49.58 | % |  | 45.44 | %
Weighted average expected life (in years) | 4.63 |  |  | 4.63 |  |  | 4.50 |
Information with respect to non-vested restricted stock unit activity follows:
| Restricted Awards Outstanding |  | Weighted Average Grant Date Fair Value
Balance outstanding at January 1, 2019 | 1,855,862 |  |  | $ | 8.82 |
Granted | 512,567 |  |  | 28.24 |
Vested | (351,469 | ) |  | 10.58 |
Forfeited | (446,560 | ) |  | 10.19 |
Balance outstanding at December 31, 2019 | 1,570,400 |  |  | $ | 14.38 |
Restricted stock units are valued using the closing price reported by the Nasdaq Global Select Market on the trading day immediately preceding the day of the grant. Unrecognized compensation expense for unvested restricted stock units at December 31, 2019, was approximately $11.4 million expected to be recognized over a weighted average period of 1.97 years.

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