Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

v3.5.0.2
STOCKHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2016
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY
  NOTE 6. STOCKHOLDERS’ EQUITY

 

During the nine months ended September 30, 2016 the Company paid $65.5 million or $0.30 per share in cash dividends compared to $52.4 million or $0.24 per share during the same period in 2015.

 

During the third quarter ended September 30, 2016, the Company repurchased 0.4 million shares from the open market of its $1 par value common stock at a weighted average price of $27.77 per share. No shares were repurchased during the same period in 2015. During the nine months ended September 30, 2016, the Company repurchased from the open market approximately 0.8 million shares of its $1 par value common stock at a weighted average price of $27.19 per share compared to approximately 19,000 shares that were repurchased at a weighted average price of $22.42 during the same period in 2015.

 

The Company also repurchases shares from employees for the payment of taxes on vesting restricted shares. For this purpose, the Company repurchased $0.9 million of common stock during the third quarter ended September 30, 2016 and the Company did not repurchase any of its common stock for the third quarter ended September 30, 2015, and repurchased $8.3 million and $7.0 million of common stock for the nine months ended September 30, 2016 and 2015, respectively.

 

As more fully discussed in Note 14 of the Company’s notes to the consolidated financial statements in its 2015 Annual Report on Form 10-K, stock options, time lapse restricted shares (TLRS’s) and restricted stock units have been issued to officers and other management employees under the Company’s Employee Stock Incentive Plans.  The Company issues new shares from its authorized but unissued share pool. At September 30, 2016, approximately 4.6 million shares of the Company’s common stock were reserved for issuance.

 

Time Lapse Restricted Shares and Restricted Stock Units

 

The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense:

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
(in thousands)   2016     2015     2016     2015  
Time lapse restricted stock:                                
Pre-tax compensation expense   $ 3,049     $ 3,255     $ 9,429     $ 9,374  
Tax benefit     (1,180 )     (1,260 )     (3,649 )     (3,628 )
Restricted stock expense, net of tax   $ 1,869     $ 1,995     $ 5,780     $ 5,746  

 

The Company recognized a deferred tax benefit of approximately $0.4 million and a deferred tax benefit of $0.1 million during the third quarters ended September 30, 2016 and 2015 respectively, and a deferred tax benefit of approximately $3.5 million, $1.8 million and $1.9 million for the nine months ended September 30, 2016 and 2015 and the year ended December 31, 2015, respectively, related to the vesting of restricted shares which have been recorded as increases to paid-in capital.

 

The following table summarizes information on unvested restricted stock outstanding as of September 30, 2016:

 

    Number of
Shares		     Weighted-
Average Grant-
Date Fair Value		  
Unvested Restricted Stock Units at December 31, 2015     2,751     $ 17.21  
Forfeited     (76 )     19.56  
Vested     (876 )     14.48  
Granted     503       26.45  
Unvested Restricted Stock Units at September 30, 2016     2,301     $ 20.19  

 

At September 30, 2016 and December 31, 2015, the Company had $33.7 million and $31.3 million of total unrecognized compensation cost, respectively, related to time-lapse restricted shares that are expected to be recognized over a weighted average period of approximately 3.9 years and 3.8 years, respectively.