• Filing Date: 2017-02-22
  • Form Type: 10-K
  • Description: Annual report
v3.6.0.2
Stock-Based Compensation
12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

Note 20 — Stock-Based Compensation

Incentive Plan

The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is active and available for future grants. With respect to the 2012 Plan, the Company may grant stock-based awards to employees, directors, consultants, and advisors of the Company. At December 31, 2016, there were 4,236,825 shares available for grant.

Stock Options

Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the years ended December 31, 2016, 2015 and 2014 is as follows (option amounts not in thousands):

 

                   Weighted       
            Weighted      Average       
            Average      Remaining    Aggregate  
     Number of      Exercise      Contractual    Intrinsic  
     Options      Price     

Term

   Value  

Outstanding at January 1, 2014

     280,000       $ 2.91       3.9 years    $ 14,166   
  

 

 

          

Exercised

     (50,000    $ 2.50         
  

 

 

          

Outstanding at December 31, 2014

     230,000       $ 3.00       3.0 years    $ 9,256   
  

 

 

          

Exercised

     (120,000    $ 2.82         
  

 

 

          

Outstanding at December 31, 2015

     110,000       $ 3.19       2.3 years    $ 3,482   
  

 

 

          

Exercised

     (60,000    $ 2.50         
  

 

 

          

Outstanding at December 31, 2016

     50,000       $ 4.02       2.3 years    $ 1,773   
  

 

 

          

Exercisable at December 31, 2016

     50,000       $ 4.02       2.3 years    $ 1,773   
  

 

 

          

The following table summarizes information about options exercised, and the fair value of vested options for the years ended December 31, 2016, 2015 and 2014 (option amounts not in thousands):

 

     2016      2015      2014  

Options exercised

     60,000         120,000         50,000   

Total intrinsic value of exercised options

   $ 1,376       $ 4,551       $ 1,970   

Fair value of vested stock options

   $ —         $ —         $ 17   

Tax benefits realized

   $ 501       $ 1,697       $ 603   

During the year ended December 31, 2015, a total of 120,000 options were exercised, of which 30,000 options were net settled by surrender of 2,013 shares. All outstanding stock options vested and their related compensation expense had been fully recognized prior to 2015. Compensation expense recognized for the year ended December 31, 2014 totaled approximately $6 and is included in other operating expenses. Deferred tax benefits related to stock options for the year ended December 31, 2014 were immaterial.

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the market value of the Company’s stock on the grant date.

Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2016, 2015 and 2014 is as follows:

 

     Number of      Weighted  
     Restricted      Average  
     Stock      Grant Date  
     Awards      Fair Value  

Nonvested at January 1, 2014

     735,650       $ 25.48   

Granted

     108,720       $ 47.40   

Vested

     (193,825    $ 27.48   

Forfeited

     (10,840    $ 41.53   
  

 

 

    

Nonvested at December 31, 2014

     639,705       $ 28.33   
  

 

 

    

Granted

     83,260       $ 44.46   

Vested

     (59,695    $ 30.13   

Forfeited

     (42,757    $ 28.15   
  

 

 

    

Nonvested at December 31, 2015

     620,513       $ 30.33   
  

 

 

    

Granted

     142,440       $ 32.35   

Vested

     (47,152    $ 42.27   

Cancelled

     (160,000    $ 26.27   

Forfeited

     (13,298    $ 39.06   
  

 

 

    

Nonvested at December 31, 2016

     542,503       $ 30.81   
  

 

 

    

The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $4,198, $5,212 and $8,104 for the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016 and 2015, there was approximately $7,531 and $7,641, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 22 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the years ended December 31, 2016, 2015 and 2014.

 

     2016      2015      2014  

Deferred tax benefits recognized

   $ 1,619       $ 1,453       $ 3,126   

Tax benefits realized for restricted stock and paid dividends

   $ 140       $ 598       $ 1,477   

Fair value of vested restricted stock

   $ 1,993       $ 1,798       $ 5,326   

The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions:

 

     2014

Expected dividends per share

   $1.10

Expected volatility

   42.1 – 46.6%

Risk-free interest rate

   0.1 – 1.5%

Estimated cost of capital

   11.5%

Expected life (in years)

   4.00

During the years ended December 31, 2016 and 2015, no awards were issued with other than time-based vesting conditions.