Note 9. Shared-Based Compensation

The following table lists the components of share-based compensation expense for the three-month and nine-month periods ended September 30, 2017 and 2016, by type of award.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Stock options	$	527	$	185	$	1,102	$	679
Restricted stock		773		425		1,628		2,120
Performance share units		467		294		1,255		760

Share-based compensation	$	1,767	$	904	$	3,985	$	3,559

Prior to the sale of the PBC business, our board of directors approved the acceleration of vesting of share-based awards to 19 members of PBC executive management in recognition of their service to the Company. The vesting date was accelerated to August 17, 2017, and the term was changed to two years for 58,094 option awards. The vesting date for 25,564 restricted stock awards was accelerated to August 17, 2017. We accounted for the acceleration of vesting as a modification of share-based awards. Accordingly, we recognized in discontinued operations approximately $0.8 million of incremental share-based compensation expense.

Stock Options

During the nine months ended September 30, 2017, we granted 125,700 option awards to officers and certain other key employees. The weighted average grant date fair value of options granted during the nine months ended September 30, 2017, was $11.84 per share. The fair value of these options cannot be determined by market value because the options are not traded in an open market. Accordingly, we utilized the Black Scholes financial pricing model to estimate the fair value. The following table shows the weighted average assumptions relevant to determining the fair value of the 2017 stock option grants.


	2017 Stock Option Awards
Expected term		6 years
Risk free interest rate		2.03	%
Dividend yield		1.16	%
Expected volatility		56.56	%
Expected forfeiture rate		3.00	%

The following table provides a reconciliation of option activity for the nine months ended September 30, 2017.


				Weighted-		Weighted-
				Average		Average
				Exercise		Remaining		Aggregate
				Price		Contractual		Intrinsic
Options	Shares (000)			(per share)		Term (years)		Value
Outstanding at January 1, 2017		897		$	12.22
Granted		126			24.20
Exercised		(250	)		11.79
Forfeited or expired		(6	)		7.72

Outstanding at September 30, 2017		767		$	14.32		6.5	$	11,246	(1)

Exercisable at September 30, 2017		583		$	12.71		5.7	$	9,500	(1)

(1)	The intrinsic value is the amount by which the market price of our stock was greater than the exercise price of any individual option grant at September 30, 2017.

Restricted Stock

During the nine months ended September 30, 2017, we granted 85,393 restricted stock awards to non-executive directors, officers and certain other key employees. The shares of restricted stock granted during the nine months ended September 30, 2017, vest pro-rata over three years for officers and certain other key employees and over one year for non-executive directors. We determined the fair value of the shares issued by using the closing price of our common stock as of the date of grant. The weighted average grant date value of restricted stock granted in the nine months ended September 30, 2017, was $24.29 per share.

Performance Share Units

During the nine months ended September 30, 2017, we granted 98,618 performance share units to officers and certain other key employees. The performance share units granted will be satisfied in the form of shares of common stock during 2020 if certain performance and/or market conditions are met. We recognize the compensation expense over the three-year period in which the performance and market conditions are measured. We determined the fair value per share of the performance share units issued by using the grant date closing price of our common stock for the units with a performance condition, or $24.20, and a Monte Carlo valuation model for the units that have a market condition, or $29.84.