Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.10.0.1
Stock-Based Compensation
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

Stock Options

          A summary of the stock option activity for the nine months ended September 30, 2018 is presented below.

 
 
Number
of Shares
 
Weighted
Average
Exercise
Price
 
 
 
 
 
Outstanding at January 1, 2018
 
4,636,353

 
$
5.20

Granted
 

 
$

Exercised
 
(3,625
)
 
$
14.00

Forfeited
 
(14,736
)
 
$
14.00

Expired
 

 
$

Canceled
 

 
$

Outstanding at September 30, 2018
 
4,617,992

 
$
5.17

Exercisable at September 30, 2018
 
4,040,320

 
$
3.90


          The weighted average grant-date fair value of stock options granted during the nine months ended September 30, 2018 and 2017 was $0 and $3.35, respectively. As of September 30, 2018, the aggregate intrinsic value for our outstanding stock options was $52.3 million, and the aggregate intrinsic value for our exercisable stock options was $50.9 million. The aggregate intrinsic value for the exercised stock options during the nine months ended September 30, 2018 was $0.02 million. The remaining contractual term for the outstanding and exercisable stock options as of September 30, 2018, was 6.1 years and 5.8 years, respectively. For the nine months ended September 30, 2018 and 2017, we recognized $0.5 million and $2.8 million in stock compensation expense related to these stock option awards.

Restricted Stock Units (Non-Vested Stock) and Performance Stock Units
    
         During the nine months ended September 30, 2018, we granted a total of 319,250 restricted stock units ("RSUs") to employees, directors and executives pursuant to our Incentive Award Plan ("IAP"). Each RSU represents the right to receive one share of common stock. The fair value of the RSUs is based on the closing share price of our common stock on the date of grant. During the nine months ended September 30, 2018 and 2017, the recorded stock compensation expense for all RSUs was $2.0 million and $5.8 million, respectively. As of September 30, 2018 the total unrecognized compensation expense for all RSUs was approximately $6.6 million, and is expected to be recognized over a weighted-average period of approximately 1.4 years.

          The following table summarizes RSUs activity during the nine months ended September 30, 2018:

 
Number of
Shares
 
Weighted
Average
Grant Date
Fair Value
Outstanding at January 1, 2018
 
688,744

 
$
13.66

Granted
 
319,250

 
$
18.49

Vested
 
(500,360
)
 
$
13.87

Forfeited
 
(19,951
)
 
$
15.49

Expired
 

 
$

Canceled
 

 
$

Outstanding at September 30, 2018
 
487,683

 
$
16.53




           Effective April 18, 2018, our Board of Directors authorized and granted performance stock units ("PSUs") to certain key employees under the IAP. The actual number of shares that may be issued under the PSUs ranges from zero up to a maximum of twice the target number of performance stock unit awards granted to the participant, based on our total shareholder return relative to a designated peer group from January 1, 2018 through December 31, 2020. Compensation expense is recorded ratably over the corresponding requisite service period. The fair value of PSUs is determined using a Monte Carlo probability model. Grant recipients do not have any shareholder rights until performance relative to the peer group has been determined following the completion of the performance period and shares have been issued. During the nine months ended September 30, 2018 and 2017, the recorded stock compensation expense for the PSUs was $1.3 million and $0.2 million, respectively.

The following table summarizes information about the PSUs that were outstanding at September 30, 2018:
Period
Granted
 
Target Shares
Outstanding at
Beginning
of Period
 
Target
Shares
Granted
 
Target Shares Vested
 
Target
Shares
Forfeited
 
Target Shares
Outstanding
at End
of Period
 
Weighted
Average
Grant Date
Fair Value per
Share
2017
 
169,635

 

 

 

 
169,635

 
$
10.73

2018
 

 
178,975

 

 

 
178,975

 
$
27.51

Total
 
169,635

 
178,975

 

 

 
348,610

 
$
19.34



          The total stock compensation expense for the nine months ended September 30, 2018 and 2017 for all stock awards was $3.8 million and $8.7 million, respectively. The total unrecognized compensation expense as of September 30, 2018 is approximately $13.2 million, and is expected to be recognized over a weighted-average period of approximately 2.2 years.