XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Stock Compensation | 9 Months Ended
--- | ---
Sep. 30, 2020
Share-based Payment Arrangement [Abstract] |
Stock Compensation | Stock Compensation Under stockholder approved stock-based plans, stock options, stock appreciation rights, restricted stock and restricted stock units may be granted to officers, directors and other key employees. As of September 30, 2020, the company has granted non-qualified stock options and restricted stock units under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative expense, and recognizes compensation cost only for those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures. During the nine months ended September 30, 2020 and 2019, the company recorded $11.1 million and $10.1 million of share-based restricted stock unit compensation expense, respectively. Restricted stock unit awards may contain time-based units, performance-based units, total shareholder return market-based units, or a combination of these units. Each performance-based and market-based unit will vest into zero to two shares depending on the degree to which the performance or market conditions are met. Compensation expense for performance-based awards is recognized as expense ratably for each installment from the date of grant until the date the restrictions lapse, and is based on the fair market value at the date of grant and the probability of achievement of the specific performance-related goals. Compensation expense for market-related awards is recognized as expense ratably over the measurement period, regardless of the actual level of achievement, provided the service requirement is met. Restricted stock unit grants for the company’s directors vest upon award and compensation expense for such awards is recognized upon grant. A summary of restricted stock unit activity for the nine months ended September 30, 2020 follows (shares in thousands):
|  | Restricted Stock Units |  | Weighted- Average Grant-Date Fair Value
Outstanding at December 31, 2019 |  | 2,040 |  |  | $ | 14.17 |
Granted |  | 747 |  |  | 22.45 |
Vested |  | (940) |  |  | 13.80 |
Forfeited and expired |  | (116) |  |  | 15.88 |
Outstanding at September 30, 2020 |  | 1,731 |  |  | 17.84 |
The aggregate weighted-average grant-date fair value of restricted stock units granted during the nine months ended September 30, 2020 and 2019 was $17.2 million and $16.8 million, respectively. The fair value of restricted stock units with time and performance conditions was determined based on the trading price of the company’s common shares on the date of grant. The fair value of awards with market conditions was estimated using a Monte Carlo simulation with the following weighted-average assumptions:
| Nine Months Ended September 30, |  |
| 2020 |  | 2019
Weighted-average fair value of grant | $ | 28.33 |  |  | $ | 16.58 |
Risk-free interest rate(i) | 1.35 | % |  | 2.49 | %
Expected volatility(ii) | 51.81 | % |  | 47.91 | %
Expected life of restricted stock units in years(iii) | 2.86 |  | 2.87
Expected dividend yield | — | % |  | — | %
(i)Represents the continuously compounded semi-annual zero-coupon U.S. treasury rate commensurate with the remaining performance period
(ii)Based on historical volatility for the company that is commensurate with the length of the performance period
(iii)Represents the remaining life of the longest performance period
As of September 30, 2020, there was $16.1 million of total unrecognized compensation cost related to outstanding restricted stock units granted under the company’s plans. That cost is expected to be recognized over a weighted-average period of 2.1 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the nine months ended September 30, 2020 and 2019 was $13.0 million and $14.8 million, respectively. Common stock issued upon the lapse of restrictions on restricted stock units are newly issued shares. In light of its tax position, the company is currently not recognizing any tax benefits from the issuance of stock upon lapse of restrictions on restricted stock units.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration