Equity-Based Compensation
 9 Months Ended
Sep. 30, 2014
Share-based Compensation [Abstract]  
Equity-Based Compensation
EQUITY-BASED COMPENSATION
As of September 30, 2014, we had three stock incentive plans under which performance share grants, restricted stock unit (RSU) grants and stock options were outstanding, with approximately 1,082,692 shares authorized for future use under the 2014 Long-Term Incentive Plan.
On May 8, 2014, our board approved changes to our director compensation program. This amendment states that upon a director's separation from the company, all deferred awards will be settled in company stock and no longer settled in cash. This resulted in a reclassification of the related $4.3 million liability to stockholders' equity.
As of September 30, 2014, there were 113,148 shares that will be distributed to directors in the future.
The following table details our equity-based compensation expense and director deferred compensation expense for the quarters and nine months ended September 30:
 
Quarter Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
 
(Dollars in thousands)
2014
 
2013
 
2014
 
2013
Employee equity-based compensation expense:
 
 
 
 
 
 
 
Performance shares
$
882

 
$
959

 
$
2,577

 
$
2,708

Restricted stock units
144

 
211

 
481

 
563

Total employee equity-based compensation expense
$
1,026

 
$
1,170

 
$
3,058

 
$
3,271

 
 
 
 
 
 
 
 
Total tax benefit recognized
$
62

 
$
—

 
$
217

 
$
71

 
 
 
 
 
 
 
 
Director deferred compensation expense
$
111

 
$
25

 
$
125

 
$
375


PERFORMANCE SHARES
The following table presents the key inputs used in the Monte Carlo simulation method to calculate the fair value of the performance share awards in 2014 and 2013, and the resulting fair values:
 
2014
 
2013
Shares granted
87,441

 
83,111

Stock price as of valuation date
$
39.76

 
$
45.31

Risk-free rate
0.72
%
 
0.40
%
Fair value of a performance share
$
45.57

 
$
62.78


The following table summarizes outstanding performance share awards as of September 30, 2014, and changes during the nine months ended September 30, 2014:
(Dollars in thousands, except grant date fair value)
Shares
 
Weighted Avg.
Grant Date
Fair Value
 
Aggregate
Intrinsic Value
Unvested shares outstanding at January 1
155,814

 
$
48.73

 
 
Granted
87,441

 
45.57

 
 
Forfeited
(6,080
)
 
50.26

 
 
Unvested shares outstanding at September 30
237,175

 
47.53

 
$
9,537


As of September 30, 2014, there was $5.1 million of unrecognized compensation cost related to unvested performance share awards, which is expected to be recognized over a weighted average period of 1.3 years.



RESTRICTED STOCK UNITS
The following table summarizes outstanding RSU awards as of September 30, 2014, and changes during the nine months ended September 30, 2014:
(Dollars in thousands, except grant date fair value)
Shares
 
Weighted Avg.
Grant Date
Fair Value
 
Aggregate
Intrinsic Value
Unvested shares outstanding at January 1
37,461

 
$
38.69

 
 
Granted
15,849

 
39.85

 
 
Vested
(6,050
)
 
42.09

 
 
Forfeited
(2,025
)
 
40.95

 
 
Unvested shares outstanding at September 30
45,235

 
38.54

 
$
1,819


The fair value of each RSU equaled our common share price on the date of grant. The total fair value of RSU awards vested during the nine months ended September 30, 2014 was $0.3 million. As of September 30, 2014, there was $1.0 million of total unrecognized compensation cost related to unvested RSU awards, which is expected to be recognized over a weighted average period of 1.3 years.
STOCK OPTIONS
The following table summarizes outstanding stock options as of September 30, 2014, and changes during the nine months ended September 30, 2014:
(Dollars in thousands, except exercise prices)
Shares
 
Weighted Avg.
Exercise Price
 
Aggregate
Intrinsic Value
Outstanding at January 1
12,859

 
$
30.92

 
 
Shares exercised
(4,286
)
 
30.92

 
 
Shares canceled or expired
—

 
—

 
 
Outstanding and exercisable at September 30
8,573

 
30.92

 
$
80


The following table summarizes outstanding stock options as of September 30, 2014:
 
Options Outstanding and Exercisable
Exercise Price
Outstanding
 
Weighted Avg.
Remaining
Contractual Life
$30.9204
8,573

 
0.17 years