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STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2016
Share-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION
8.
STOCK-BASED COMPENSATION
 
In May 2011, the Company adopted and shareholders approved the 2011 Omnibus Incentive Plan (the “Omnibus Plan”). This plan provides for the issuance of stock options, restricted stock, stock appreciation rights and performance units to directors, officers and other eligible employees of the Company. The Omnibus Plan makes available approximately 7.5 million shares for issuance, subject to adjustments for stock dividends, recapitalizations and the like.
 
The Company recognizes all share-based awards to eligible employees based upon their fair value. The Company’s policy is to recognize expense for awards that have service conditions only subject to graded vesting using the straight-line attribution method. Total stock-based compensation expense was $12.0 million, $10.0 million and $7.8 million in 2016, 2015 and 2014, respectively. The amount of compensation costs related to nonvested stock options and restricted stock not yet recognized was $12.0 million at December 31, 2016, for which the weighted average remaining life was 1.7 years.
 
Stock Options
 
Stock options are awarded with an exercise price equal to the market price of the underlying stock on the date of grant, become fully exercisable three years after the date of grant and expire ten years after the date of grant. No stock options were granted by the Company in 2016. The fair value of stock option awards is estimated on the date of grant using a binomial option-pricing model that uses the assumptions noted in the following table:
 
Valuation Assumptions
 
2015
 
2014
 
Risk-free interest rate
 
 
2.14
%
 
2.73
%
Expected volatility
 
 
72.5
%
 
72.0
%
Expected dividend yield
 
 
0.00
%
 
0.00
%
Expected term
 
 
5 yrs.
 
 
5 yrs.
 
 
The expected volatility is based upon the Company’s historical experience. The expected term represents the period of time that options granted are expected to be outstanding. The risk-free interest rate utilized for periods throughout the contractual life of the options are based on U.S. Treasury security yields at the time of grant.
 
A summary of all stock option activity during 2016 is as follows:
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
 
Weighted
 
Average
 
Aggregate
 
 
 
 
 
Average
 
Remaining
 
Intrinsic
 
 
 
Number of
 
Exercise
 
Contractual
 
Value ($ in)
 
 
 
Options
 
Price
 
Life
 
millions)
 
Options Outstanding at December 31, 2015
 
 
1,820,956
 
$
11.61
 
 
5.2
 
$
2.3
 
Exercised
 
 
(417,442)
 
$
11.57
 
 
 
 
$
1.3
 
Forfeited
 
 
(17,300)
 
$
14.64
 
 
 
 
 
 
 
Expired
 
 
(112,460)
 
$
16.71
 
 
 
 
 
 
 
Options Outstanding at December 31, 2016
 
 
1,273,754
 
$
11.13
 
 
5.1
 
$
6.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options Exercisable at December 31, 2016
 
 
1,093,165
 
$
10.67
 
 
4.6
 
$
5.6
 
 
The Company granted 190,810 and 200,720 stock options in 2015 and 2014, respectively, with aggregate fair values on the date of grant of $1.7 million for both years. The weighted average estimated fair value of the stock options granted in 2015 and 2014 were $8.82 and $8.34 per stock option, respectively. The total intrinsic value of stock options exercised during 2016, 2015 and 2014 was $1.3 million, $0.6 million and $0.7 million, respectively.
 
Restricted Stock
 
Restricted stock awards vest over a period of one to three years and may be based on the achievement of specific financial performance metrics. These shares are valued at the market price on the date of grant, are forfeitable in the event of terminated employment prior to vesting and could include the right to vote and receive dividends.
 
A summary of all restricted stock activity during 2016 is as follows:
 
 
 
 
 
Weighted
 
 
 
 
 
Average
 
 
 
Number of
 
Grant Date
 
 
 
Shares
 
Fair Value
 
Restricted Stock Outstanding at December 31, 2015
 
 
1,538,116
 
$
13.25
 
Granted
 
 
1,105,010
 
$
13.26
 
Vested
 
 
(618,145)
 
$
9.91
 
Forfeited
 
 
(61,256)
 
$
14.36
 
Restricted Stock Outstanding at December 31, 2016
 
 
1,963,725
 
$
14.20
 
 
During 2016, 2015 and 2014, the Company granted 1,105,010, 667,126 and 572,052 shares of restricted stock, respectively, with aggregate fair values on the date of grant of $14.7 million, $9.9 million and $7.9 million, respectively. The total fair value of restricted stock that vested during 2016, 2015 and 2014 was $7.4 million, $5.6 million and $5.2 million, respectively.