Annual report pursuant to Section 13 and 15(d)

Share-based Compensation (Tables)

v3.10.0.1
Share-based Compensation (Tables)
12 Months Ended
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Stock Option Activity
A summary of the stock option activity is summarized as follows:
 
 
Shares
 
Weighted Average Exercise Price of Shares
 
Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value
(in millions)
Outstanding at December 31, 2015
 
374,685

 
$
13.90

 
8.5
 
$
2.8

Granted
 
140,740

 
26.99

 
 
 
 
Exercised
 
(41,066
)
 
12.92

 
 
 
 
Forfeited or expired
 

 

 
 
 
 
Outstanding at December 31, 2016
 
474,359

 
$
17.87

 
8.1
 
$
7.8

Granted
 
92,879

 
33.93

 
 
 
 
Exercised
 
(38,381
)
 
19.51

 
 
 
 
Forfeited or expired
 

 

 
 
 
 
Outstanding at December 31, 2017
 
528,857

 
$
20.57

 
7.4
 
$
6.7

Granted
 

 

 
 
 
 
Exercised
 
(81,100
)
 
17.09

 
 
 
 
Forfeited or expired
 
(19,374
)
 
31.25

 
 
 
 
Outstanding at December 31, 2018
 
428,383

 
$
20.74

 
6.4
 
$
2.8

Options exercisable at December 31, 2018
 
341,993

 
$
18.11

 
6.1
 
$
2.8

Summary of Changes in Restricted Stock
A summary of restricted stock activity under the 2013 Plan is presented below: 
 
 
Shares
 
Weighted Average
Grant Date Fair
Value
Nonvested restricted stock - December 31, 2015
 
203,258

 
$
14.53

Granted
 
119,601

 
27.00

Vested
 
(118,097
)
 
16.05

Forfeited
 
(7,438
)
 
17.59

Nonvested restricted stock - December 31, 2016
 
197,324

 
$
21.06

Granted
 
96,724

 
33.11

Vested
 
(117,852
)
 
21.47

Forfeited
 
(5,416
)
 
26.29

Nonvested restricted stock - December 31, 2017
 
170,780

 
$
27.43

Granted
 
122,978

 
29.70

Vested
 
(125,410
)
 
25.88

Forfeited
 
(17,871
)
 
30.22

Nonvested restricted stock - December 31, 2018
 
150,477

 
$
30.25

Summary of Performance Share Award Activity
A summary of the performance share award activity is summarized as follows: 
 
 
Shares
 
Weighted-Average
Grant-Date Fair
Value
Nonvested performance shares - December 31, 2015
 
218,840

 
$
13.67

Granted (a)
 
146,916

 
26.97

Earned (b)
 
205,833

 
5.54

Vested
 
(5,104
)
 
11.00

Unearned or forfeited
 
(10,072
)
 
16.58

Nonvested performance shares - December 31, 2016
 
556,413

 
$
14.15

Granted (a)
 
98,518

 
33.92

Earned (b)
 
65,017

 
10.03

Vested
 
(291,859
)
 
9.88

Unearned or forfeited
 
(12,719
)
 
28.05

Nonvested performance shares - December 31, 2017
 
415,370

 
$
20.76

Granted (a)
 
152,261

 
29.25

Earned
 

 

Vested
 
(221,339
)
 
14.78

Unearned or forfeited
 
(82,793
)
 
30.80

Nonvested performance shares - December 31, 2018
 
263,499

 
$
27.54

(a)     Reflected at target levels.
(b)    Includes shares earned in excess of target from prior year grant.
Summary of Share-Based Compensation Expense
The following table summarizes share-based compensation expense, reported as a component of selling, general, and administrative expense, related to our stock options, restricted stock and performance share awards:
 
Year Ended December 31,
(in millions)
2018
 
2017
 
2016
Stock options
$
0.5

 
$
1.2

 
$
1.3

Restricted stock
3.2

 
3.0

 
2.4

Performance shares
3.0

 
4.0

 
3.2

Total pre-tax share-based compensation expense
$
6.7

 
$
8.2

 
$
6.9

Net tax benefit related to share-based compensation expense
$
1.2

 
$
3.2

 
$
2.6

Stock Options [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Weighted Average Assumptions Used in Estimating Fair Value
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and the following weighted-average inputs for the option pricing model:
 
2017
 
2016
Expected volatility
36
%
 
41
%
Risk-free interest rate
2.2
%
 
1.6
%
Dividend yield
0.4
%
 
0.6
%
Expected term
6.0 years

 
6.0 years

Performance Shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Weighted Average Assumptions Used in Estimating Fair Value
Specific to the estimated 2018, 2017, and 2016 performance shares earned in excess of 100%, the fair value and weighted-average inputs used were as follows:
 
2018
 
2017
 
2016
Grant date fair value
$
29.25

 
$
33.92

 
$
20.05

Expected volatility
35
%
 
34
%
 
30
%
Risk-free interest rate
2.1
%
 
1.1
%
 
0.9
%
Dividend yield
%
 
%
 
%