Stockholders' Equity and Equity Instruments | Stockholders’ Equity and Equity Instruments: In May 2015, the Company’s shareholders approved the 2015 Incentive Award Plan, which authorizes the issuance of 3,000,000 shares. Since the date the 2015 Incentive Award Plan was approved, the Company ceased issuing equity awards under the 2005 Incentive Award Plan. In 2016, the Company elected to move its grant date for annual grants of equity awards from March to April. For outstanding awards, the Company’s closing stock price on the grant date was used to set the exercise price for options and the fair value of restricted stock units (“RSUs”). In the first six months of 2016, the Company granted 157,887 options, 25,565 RSUs and 42,902 performance stock units (“PSUs”) to certain employees under its 2015 Incentive Award Plan. None of the granted equity awards have voting rights. Options Options granted in 2016 vest ratably on each anniversary date over a four -year service period. Unexercised options expire after seven years. Options do not have dividend rights. To estimate the fair value of options on the grant date, the Company uses the Black-Scholes option valuation model . Award recipients are grouped according to expected exercise behavior. Unless better information is available to estimate the expected term of the options, the estimate is based on historical exercise experience. The risk-free rate, using U.S. Treasury yield curves in effect at the time of grant, is selected based on the expected term of each group. The Company’s historical stock price is used to estimate expected volatility. The inputs used to calculate fair value for options granted in 2016 are included in the table below. Fair value of options granted $10.17 Exercise price $70.58 Expected term (years) 4.5 Expected volatility 24.4% Dividend yield 3.3% Risk-free rate of return 1.2% RSUs RSUs granted in 2016 vest on the third anniversary following the grant date and are earned after a performance hurdle tied to the Company’s 2016 financial performance has been satisfied. Holders of RSUs are entitled to receive non-forfeitable dividends or other distributions equal to those declared on the Company’s common stock for RSUs that are earned. PSUs PSUs granted in 2016 have a three -year performance period that begins on the grant date and vest on the third anniversary following the grant date. PSUs represent a target number of shares of Company common stock that may be earned before adjustment based upon the attainment of certain performance conditions. Holders of PSUs are entitled to receive non-forfeitable dividends or other distributions equal to those declared on the Company’s common stock for PSUs that are earned. The Company granted two types of PSUs in 2016, total shareholder return PSUs (“TSR PSUs”) and return on invested capital PSUs (“ROIC PSUs”). The actual number of shares of common stock that may be earned with respect to TSR PSUs is calculated by comparing the Company’s total shareholder return to the total shareholder return for each company comprising the Russell 3000 Index over the three -year performance period and may range from 0% to 150% of the target number of shares based upon the attainment of these performance conditions. The actual number of shares of common stock that may be earned with respect to ROIC PSUs is calculated by averaging the Company’s annual return on invested capital for each year in the three -year performance period and may range from 0% to 200% of the target number of shares based upon the attainment of these performance conditions. To estimate the fair value of the TSR PSUs on the grant date, the Company uses a Monte-Carlo simulation model, which simulates future stock prices of the Company as well as the companies comprising the Russell 3000 Index. This model uses historical stock prices to estimate expected volatility and the Company’s correlation to the Russell 3000 Index. The risk-free rate was determined using the same methodology as the option valuations as discussed above. The Company’s closing stock price on the grant date was used to estimate the fair value of the ROIC PSUs. The Company will adjust the expense of the ROIC PSUs based upon its estimate of the number of shares that will ultimately vest at each interim date during the three -year vesting period. During the six months ended June 30, 2016 , the Company reissued the following number of shares from treasury stock: 11,377 shares related to the exercise of stock options, 51,324 shares related to the release of RSUs which vested, 10,258 shares related to the release of PSUs which vested and 11,003 shares related to stock payments. The Company recognized a tax deficiency of $0.2 million from its equity compensation awards as a decrease to additional paid-in capital during the first six months of 2016 . During the first six months of 2016 and 2015 , the Company recorded $2.6 million and $3.3 million , respectively, of compensation expense pursuant to its stock-based compensation plans. No amounts have been capitalized. The following table summarizes stock-based compensation activity during the six months ended June 30, 2016 . Stock Options RSUs PSUs (a) Number Weighted-average exercise price Number Weighted-average fair value Number Weighted-average fair value Outstanding at December 31, 2015 353,087 $ 83.94 91,008 $ 80.65 77,365 $ 96.63 Granted 157,887 70.48 25,565 70.48 42,902 73.77 Exercised (b) (11,377 ) 62.52 — — — — Released from restriction (b) — — (51,324 ) 75.18 (10,258 ) 78.49 Cancelled/expired (17,033 ) 86.53 (2,265 ) 89.70 (9,219 ) 88.47 Outstanding at June 30, 2016 482,564 $ 79.95 62,984 $ 80.66 100,790 $ 89.50 (a) Until they vest, PSUs are included in the table at the target level at their grant date and at that level represent one share of common stock per PSU. The final performance period for the 2013 PSU grant was completed in 2015. The Company cancelled 5,263 PSUs in the first quarter of 2016 related to the 2013 PSU grant. (b) Common stock issued for exercised options and for vested and earned RSUs and PSUs was issued from treasury stock. Other Comprehensive Income (Loss) The Company’s comprehensive income (loss) is comprised of net earnings, net amortization of the unrealized loss of the pension obligation, the change in the unrealized gain (loss) on natural gas cash flow hedges and foreign currency translation adjustments. The components of and changes in accumulated other comprehensive income (loss) (“AOCI”) as of and for the three and six months ended June 30, 2016 , and 2015 , are as follows (in millions): Three Months Ended June 30, 2016 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (1.4 ) $ (3.7 ) $ (68.5 ) $ (73.6 ) Other comprehensive income (loss) before reclassifications (b) 0.7 — (3.3 ) (2.6 ) Amounts reclassified from accumulated other comprehensive loss 0.5 0.1 — 0.6 Net current period other comprehensive income (loss) 1.2 0.1 (3.3 ) (2.0 ) Ending balance $ (0.2 ) $ (3.6 ) $ (71.8 ) $ (75.6 ) Three Months Ended June 30, 2015 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (2.0 ) $ (8.7 ) $ (54.3 ) $ (65.0 ) Other comprehensive income (loss) before reclassifications (b) 0.1 — 11.2 11.3 Amounts reclassified from accumulated other comprehensive loss 0.4 0.3 — 0.7 Net current period other comprehensive income (loss) 0.5 0.3 11.2 12.0 Ending balance $ (1.5 ) $ (8.4 ) $ (43.1 ) $ (53.0 ) Six Months Ended June 30, 2016 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (1.6 ) $ (3.8 ) $ (102.9 ) $ (108.3 ) Other comprehensive income (loss) before reclassifications (b) 0.2 — 31.1 31.3 Amounts reclassified from accumulated other comprehensive loss 1.2 0.2 — 1.4 Net current period other comprehensive income (loss) 1.4 0.2 31.1 32.7 Ending balance $ (0.2 ) $ (3.6 ) $ (71.8 ) $ (75.6 ) Six Months Ended June 30, 2015 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (2.0 ) $ (9.0 ) $ (4.5 ) $ (15.5 ) Other comprehensive income (loss) before reclassifications (b) (0.6 ) — (38.6 ) (39.2 ) Amounts reclassified from accumulated other comprehensive loss 1.1 0.6 — 1.7 Net current period other comprehensive income (loss) 0.5 0.6 (38.6 ) (37.5 ) Ending balance $ (1.5 ) $ (8.4 ) $ (43.1 ) $ (53.0 ) (a) With the exception of the cumulative foreign currency translation adjustment, for which no tax effect is recorded, the changes in the components of accumulated other comprehensive gain (loss) presented in the tables above are reflected net of applicable income taxes. (b) The Company recorded foreign exchange (gains) losses of $(4.9) million and $(26.7) million in the three and six months ended June 30, 2016 , respectively, and $(2.7) million and $14.6 million in the three and six months ended June 30, 2015 , respectively, in accumulated other comprehensive income (loss) related to intercompany notes which were deemed to be of long-term investment nature. The amounts reclassified from AOCI to (income) expense for the three and six months ended June 30, 2016 , and 2015 , are shown below (in millions): Amount Reclassified from AOCI Three Months Ended Six Months Ended Line Item Impacted in the Consolidated Statement of Operations Gains and (losses) on cash flow hedges: Natural gas instruments $ 0.8 $ 1.9 Product cost (0.3 ) (0.7 ) Income tax expense (benefit) Reclassifications, net of income taxes 0.5 1.2 Amortization of defined benefit pension: Amortization of loss $ 0.1 $ 0.2 Product cost — — Income tax expense (benefit) Reclassifications, net of income taxes 0.1 0.2 Total reclassifications, net of income taxes $ 0.6 $ 1.4 Amount Reclassified from AOCI Three Months Ended Six Months Ended Line Item Impacted in the Consolidated Statement of Operations Gains and (losses) on cash flow hedges: Natural gas instruments $ 0.6 $ 1.7 Product cost (0.2 ) (0.6 ) Income tax expense (benefit) Reclassifications, net of income taxes 0.4 1.1 Amortization of defined benefit pension: Amortization of loss $ 0.3 $ 0.7 Product cost — (0.1 ) Income tax expense (benefit) Reclassifications, net of income taxes 0.3 0.6 Total reclassifications, net of income taxes $ 0.7 $ 1.7 |