Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v3.8.0.1
Share-Based Compensation
 3 Months Ended
Mar. 31, 2018
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 included in the 2017 10-K. During the three months ended March 31, 2018, the Company granted restricted stock units subject to service conditions and service and performance conditions.

For the three months ended March 31, 2018 and 2017, share-based compensation expense amounted to $9.8 million and $11.3 million, respectively. As of March 31, 2018, the total unrecognized compensation cost related to all non-vested stock awards was $80.9 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, 2018:

 

 

 

Number of Awards

 

 

Weighted-Average Exercise Price Per Award

 

 

Weighted-Average Remaining Contractual Term

 

Aggregate Intrinsic Value(1)

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

(in millions)

 

Outstanding as of December 31, 2017(2)(3)

 

 

9,597

 

 

$

46.72

 

 

6.2 years

 

$

212.0

 

Granted

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Exercised

 

 

(2,379

)

 

$

40.49

 

 

 

 

 

 

 

Forfeited

 

 

(81

)

 

$

55.92

 

 

 

 

 

 

 

Outstanding as of March 31, 2018(2)(3)

 

 

7,137

 

 

$

48.69

 

 

6.2 years

 

$

348.1

 

Exercisable as of March 31, 2018(4)

 

 

4,992

 

 

$

44.32

 

 

5.3 years

 

$

265.3

 

 

(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 0.1 million market condition SARs as of both March 31, 2018 and December 31, 2017.

(3)

Includes 2.9 million and 3.1 million performance condition SARs as of March 31, 2018 and December 31, 2017, respectively, which represent the maximum amount that can vest.

(4)

Includes 2.0 million performance condition SARs.

There were no SARs granted during the three months ended March 31, 2018. The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2017 was $28.32. The total intrinsic value of SARs exercised during the three months ended March 31, 2018 and 2017 was $122.2 million and $16.8 million, respectively.

The following table summarizes the activities for stock units for the three months ended March 31, 2018:

 

 

 

Number of Shares

 

 

Weighted-Average Grant Date Fair Value Per Share

 

 

 

(in thousands)

 

 

 

 

 

Outstanding and nonvested as of December 31, 2017(1)

 

 

163

 

 

$

68.69

 

Granted(2)

 

 

662

 

 

$

86.30

 

Vested

 

 

(1

)

 

$

61.14

 

Forfeited

 

 

(6

)

 

$

86.30

 

Outstanding and nonvested as of March 31, 2018(1)

 

 

818

 

 

$

82.81

 

 

(1)

Includes 354,418 and 134,388 performance-based stock unit awards as of March 31, 2018 and December 31, 2017, respectively, which represents the maximum amount that can vest.

(2)

Includes 220,030 performance-based stock unit awards, which represents the maximum amount that can vest.

The total vesting date fair value of stock units which vested during both the three months ended March 31, 2018 and 2017 was less than $0.1 million.