CLB 2018 Annual Report

F-26 Equity Compensation Plan Information Information about our equity compensation plans as of December 31, 2018 are as follows: Plan Category Number of Shares to be Issued upon Vesting Number of Shares Available for Future Grants 2014 Long-Term Incentive Plan 522,786 954,552 2014 Nonemployee Director Stock Incentive Plan 19,002 537,086 Stock-based Compensation Non-vested restricted share awards outstanding under both the Plan and the Director Plan as of December 31, 2018 and changes during the year were as follows: Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested at December 31, 2017 536,750 $ 105.42 Granted 241,988 100.12 Vested (218,625) 103.61 Forfeited (18,555) 108.20 Non-vested at December 31, 2018 541,558 $ 103.68 For the years ended December 31, 2018, 2017 and 2016, stock-based compensation expense under both the Plan and the Director Plan recognized in the income statement is as follows (in thousands): 2018 2017 2016 Cost of product sales and services $ 8,648 $ 8,879 $ 10,073 General and administrative 25,546 14,063 12,006 Total stock-based compensation expense $ 34,194 $ 22,942 $ 22,079 In 2018, we recorded additional stock compensation expenses of $9.9 million for retirement eligible employees as discussed in the section " Performance Share Award Program " above. 15. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are exposed to market risks related to fluctuations in interest rates. To mitigate these risks, we utilize derivative instruments in the form of interest rate swaps. We do not enter into derivative transactions for speculative purposes. Interest Rate Risk Series A of our Senior Notes bears interest at a fixed rate of 4.01% and Series B bears interest at a fixed rate of 4.11%. Our Credit Facility bears interest at variable rates from LIBOR plus 1.375% to a maximum of LIBOR plus 2.00%. We are subject to interest rate risk on the debt in excess of $50 million drawn on our Credit Facility. In 2014, we entered into two interest rate swap agreements for a total notional amount of $50 million to hedge changes in the variable rate interest expense on $50 million of our existing or replacement LIBOR-priced debt. Under the first swap agreement of $25 million, we have fixed the LIBOR portion of the interest rate at 1.73% through August 29, 2019, and under the second swap agreement of $25 million, we have fixed the LIBOR portion of the interest rate at 2.50% through August 29, 2024. Each swap is measured at fair value and recorded in our consolidated balance sheet as an asset or liability. They are designated and qualify as cash flow hedging instruments and are highly effective. Unrealized losses are deferred to shareholders' equity as a component of accumulated other comprehensive income (loss) and are recognized in income as an increase or decrease to interest expense in the period in which the related cash flows being hedged are recognized in expense.