Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v3.4.0.3
Share-Based Compensation
 3 Months Ended
Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

7. Share-Based Compensation

The Company has share-based compensation plans, which are more fully described in Note 9, Share-Based Compensation, to the Consolidated Financial Statements in the 2015 10-K. During the three months ended March 31, 2016, the Company granted stock awards subject to service conditions and service and performance conditions, consisting of stock appreciation rights, or SARs.

For the three months ended March 31, 2016 and 2015, share-based compensation expense amounted to $9.8 million and $11.1 million, respectively. As of March 31, 2016, the total unrecognized compensation cost related to all non-vested stock awards was $41.3 million and the related weighted-average period over which it is expected to be recognized is approximately 1.4 years.

The following tables summarize the activity under all share-based compensation plans for the three months ended March 31, 2016:

 

Stock Options & SARs

 

Awards

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

 

Aggregate

Intrinsic

Value(1)

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

(In millions)

 

Outstanding at December 31, 2015(2)(3)

 

 

12,076

 

 

$

38.70

 

 

6.6 years

 

$

216.4

 

Granted

 

 

51

 

 

$

54.75

 

 

 

 

 

 

 

Exercised

 

 

(200

)

 

$

27.83

 

 

 

 

 

 

 

Forfeited

 

 

(87

)

 

$

47.14

 

 

 

 

 

 

 

Outstanding at March 31, 2016(2) (3)

 

 

11,840

 

 

$

38.89

 

 

6.4 years

 

$

286.9

 

Exercisable at March 31, 2016(4)

 

 

7,210

 

 

$

34.60

 

 

4.9 years

 

$

202.5

 

 

(1)

The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock awards.

(2)

Includes 2.4 million and 2.5 million performance condition SARs as of March 31, 2016 and December 31, 2015, respectively.

(3)

Includes 0.1 million market condition SARs.

(4)

Includes 0.5 million performance condition SARs.

The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2016 and 2015 was $21.69 and $12.18, respectively. The total intrinsic value of stock options and SARs exercised during the three months ended March 31, 2016 and 2015 was $5.9 million and $17.6 million, respectively.

 

Incentive Plan and Independent Directors Stock Units

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

 

(In thousands)

 

 

 

 

 

Outstanding and nonvested December 31, 2015

 

 

34

 

 

$

51.08

 

Granted

 

 

—

 

 

 

 

 

Vested

 

 

(1

)

 

$

59.98

 

Forfeited

 

 

—

 

 

 

 

 

Outstanding and nonvested March 31, 2016

 

 

33

 

 

$

50.94

 

 

The total vesting date fair value of stock units which vested during the three months ended March 31, 2016 and 2015 was less than $0.1 million for both periods.

The Company recognizes excess tax benefits associated with share-based compensation to shareholders’ equity (deficit) only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company, which are also subject to applicable limitations. As of both March 31, 2016 and December 31, 2015, the Company had $25.4 million of unrealized excess tax benefits.