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Component: (Network and Table)
Network
2311301 - Disclosure - Employee Benefit Plans (Tables)
(http://www.frostbank.com/role/EmployeeBenefitPlansTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Combined Activity in Corporations Defined Benefit Pension Plans
We use a December 31 measurement date for our defined benefit plans. Combined activity in our defined benefit pension plans was as follows:
 
2016
 
2015
 
2014
Change in benefit obligation:
 
 
 
 
 
Benefit obligation at beginning of year
$
194,140

 
$
199,637

 
$
163,876

Interest cost
6,958

 
8,210

 
8,002

Actuarial (gain) loss
(8,298
)
 
(6,489
)
 
34,438

Benefits paid
(16,049
)
 
(7,218
)
 
(6,679
)
Benefit obligation at end of year
176,751

 
194,140

 
199,637

Change in plan assets:
 
 
 
 
 
Fair value of plan assets at beginning of year
163,270

 
168,185

 
164,769

Actual return on plan assets
5,174

 
1,567

 
9,428

Employer contributions
4,819

 
736

 
667

Benefits paid
(16,049
)
 
(7,218
)
 
(6,679
)
Fair value of plan assets at end of year
157,214

 
163,270

 
168,185

Funded status of the plan at end of year and accrued (benefit) liability recognized
$
19,537

 
$
30,870

 
$
31,452

Accumulated benefit obligation at end of year
$
176,751

 
$
194,140

 
$
199,637

 
 
Disaggregated Information Related to Corporations Defined Benefit Pension Plans
Certain disaggregated information related to our defined benefit pension plans as of year-end was as follows:
 
Retirement Plan
 
Restoration Plan
 
2016
 
2015
 
2016
 
2015
Projected benefit obligation
$
160,778

 
$
174,429

 
$
15,973

 
$
19,711

Accumulated benefit obligation
160,778

 
174,429

 
15,973

 
19,711

Fair value of plan assets
157,214

 
163,270

 

 

Funded status of the plan at end of year and accrued (benefit) liability recognized
3,564

 
11,159

 
15,973

 
19,711

 
 
Net Periodic Benefit Cost (Benefit)
The components of the combined net periodic cost (benefit) for our defined benefit pension plans are presented in the table below. Supplemental executive retirement plan (“SERP”) settlement costs were related to the retirement of a former executive officer.
 
2016
 
2015
 
2014
Expected return on plan assets, net of expenses
$
(11,558
)
 
$
(11,932
)
 
$
(12,514
)
Interest cost on projected benefit obligation
6,958

 
8,210

 
8,002

Net amortization and deferral
6,247

 
6,995

 
2,687

SERP settlement costs
1,027

 

 

Net periodic expense (benefit)
$
2,674

 
$
3,273

 
$
(1,825
)
 
 
Defined Benefit Pension Plans Recognized as Component of Other Comprehensive Income
Amounts related to our defined benefit pension plans recognized as a component of other comprehensive income were as follows:
 
2016
 
2015
 
2014
Net actuarial gain (loss)
$
9,188

 
$
3,118

 
$
(34,837
)
Deferred tax (expense) benefit
(3,216
)
 
(1,091
)
 
12,193

Other comprehensive income (loss), net of tax
$
5,972

 
$
2,027

 
$
(22,644
)
 
 
Defined Benefit Pension Plans Not Recognized as Component of Combined Net Period Benefit Cost
We expect to recognize approximately $5.4 million of the net actuarial loss reported in the following table as of December 31, 2016 as a component of net periodic benefit cost during 2017.
 
2016
 
2015
Net actuarial loss
$
(62,732
)
 
$
(71,920
)
Deferred tax benefit
21,956

 
25,172

Amounts included in accumulated other comprehensive loss, net of tax
$
(40,776
)
 
$
(46,748
)
 
 
Weighted-Average Assumptions Used to Determine Benefit Obligations
The weighted-average assumptions used to determine the benefit obligations as of the end of the years indicated and the net periodic benefit cost for the years indicated are presented in the table below. Because the plans were frozen, increases in compensation are not considered after 2001.
 
2016
 
2015
 
2014
Benefit obligations:
 
 
 
 
 
Discount rate
4.24
%
 
4.55
%
 
4.20
%
Net periodic benefit cost:
 
 
 
 
 
Discount rate
4.55
%
 
4.20
%
 
5.00
%
Expected return on plan assets
7.25

 
7.25

 
7.25

 
 
Fair Value of Plan Assets
The major categories of assets in our Retirement Plan as of year-end are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see Note 18 - Fair Value Measurements). Our Restoration Plan is unfunded.
 
2016
 
2015
Level 1:
 
 
 
Mutual funds
$
153,765

 
$
162,379

Cash and cash equivalents
3,208

 
322

Level 2:
 
 
 
U.S. government agency securities
241

 
316

States and political subdivisions

 
253

Total fair value of plan assets
$
157,214

 
$
163,270

 
 
Expected Future Benefit Payments Related to Defined Benefit Plans
As of December 31, 2016, expected future benefit payments related to our defined benefit plans were as follows:
2017
$
8,947

2018
9,417

2019
9,864

2020
10,268

2021
10,581

2022 through 2026
56,102

 
$
105,179

 
 
Summary of Activity in Corporation's Active Stock Plans
A combined summary of activity in our active stock plans is presented in the table. Performance stock units outstanding are presented assuming attainment of the maximum payout rate as set forth by the performance criteria. The target award level for performance stock units granted in 2016 was 28,420. As of December 31, 2016, there were 1,452,452 shares remaining available for grant for future awards.
 
 
Director Deferred
Stock Units
Outstanding
 
Non-Vested Stock
Awards/Stock Units
Outstanding
 
Performance Stock Units Outstanding
 
Stock Options
Outstanding
 
 
Number of Units
 
Weighted-
Average
Fair Value
at Grant
 
Number
of Shares/Units
 
Weighted-
Average
Fair Value
at Grant
 
Number of Units
 
Weighted-
Average
Fair Value
at Grant
 
Number
of Shares
 
Weighted-
Average
Exercise
Price
January 1, 2014
 
33,224

 
$
56.22

 
199,740

 
$
55.32

 

 
$

 
4,738,690

 
$
54.35

Authorized
 

 

 

 

 

 

 

 

Granted
 
5,643

 
78.04

 
32,050

 
78.92

 

 

 
917,750

 
78.93

Exercised/vested
 

 

 
(56,300
)
 
52.46

 

 

 
(560,291
)
 
52.04

Forfeited/expired
 

 

 

 

 

 

 
(66,267
)
 
62.21

December 31, 2014
 
38,867

 
59.39

 
175,490

 
60.55

 

 

 
5,029,882

 
58.99

Authorized
 

 

 

 

 

 

 

 

Granted
 
6,576

 
72.94

 
53,990

 
65.11

 

 

 
890,940

 
65.11

Exercised/vested
 

 

 
(56,300
)
 
48.00

 

 

 
(287,326
)
 
51.70

Forfeited/expired
 

 

 

 

 

 

 
(21,256
)
 
66.72

December 31, 2015
 
45,443

 
61.35

 
173,180

 
66.05

 

 

 
5,612,240

 
60.30

Authorized
 

 

 

 

 

 

 

 

Granted
 
8,216

 
63.25

 
132,800

 
76.07

 
42,630

 
69.70

 

 

Exercised/vested
 

 

 
(49,130
)
 
54.56

 

 

 
(1,476,841
)
 
53.40

Forfeited/expired
 

 

 

 

 

 

 
(46,371
)
 
71.04

December 31, 2016
 
53,659

 
$
61.48

 
256,850

 
$
73.43

 
42,630

 
$
69.70

 
4,089,028

 
$
62.67

 
 
Options Outstanding and Exercisable
Other information regarding options outstanding and exercisable as of December 31, 2016 is as follows:
 
 
 
 
 
 
Options Outstanding
 
Options Exercisable
Range of
Exercise Prices
 
Number
of Shares
 
Weighted-
Average
Exercise Price
 
Weighted-
Average
Remaining
Contractual Life
in Years
 
Number
of Shares
 
Weighted-
Average
Exercise
Price
$
45.01

 
to
 
$
50.00

 
469,015

 
$
48.19

 
3.93
 
469,015

 
$
48.19

50.01

 
to
 
55.00

 
1,385,938

 
52.76

 
3.89
 
1,385,938

 
52.76

65.01

 
to
 
70.00

 
860,190

 
65.11

 
8.36
 
200,611

 
65.11

70.01

 
to
 
75.00

 
518,010

 
71.38

 
6.53
 
379,849

 
71.38

75.01

 
to
 
80.00

 
855,875

 
78.94

 
7.42
 
420,250

 
78.94

 
 
 
 
Total
 
4,089,028

 
62.67

 
5.91
 
2,855,663

 
59.21

 
 
Shares Issued in Connection With Stock Compensation Awards
Shares issued in connection with stock compensation awards are issued from available treasury shares. If no treasury shares are available, new shares are issued from available authorized shares. Shares issued in connection with stock compensation awards along with other related information were as follows:
 
2016
 
2015
 
2014
New shares issued from available authorized shares

 

 

Issued from available treasury stock
1,509,121

 
337,056

 
601,851

Total
1,509,121

 
337,056

 
601,851

Proceeds from stock option exercises
$
78,866

 
$
14,853

 
$
29,158

Intrinsic value of stock options exercised
30,935

 
5,766

 
13,714

Fair value of stock awards/units vested
3,679

 
3,728

 
4,346

 
 
Stock-Based Compensation Expense
Stock-based compensation expense and the related income tax benefit is presented in the following table. The service period for performance stock units granted in 2016 begins on January 1, 2017.
 
2016
 
2015
 
2014
Stock options
$
8,235

 
$
9,660

 
$
9,142

Non-vested stock awards/stock units
3,044

 
2,597

 
2,920

Deferred stock-units
520

 
480

 
441

Performance stock units

 

 

Total
$
11,799

 
$
12,737

 
$
12,503

Income tax benefit
$
4,130

 
$
4,458

 
$
4,376

 
 
Unrecognized Stock-Based Compensation Expense
Unrecognized stock-based compensation expense and the weighted-average period over which the expense is expected to be recognized at December 31, 2016 is presented in the table below. Unrecognized stock-based compensation expense related to performance stock units is presented assuming attainment of the maximum payout rate as set forth by the performance criteria.
 
Unrecognized Expense
 
Weighted-Average Number of Years for Expense Recognition
Stock options
$
12,446

 
2.1
Non-vested stock awards/stock units
10,413

 
3.2
Performance stock units
2,971

 
3.0
Total
$
25,830

 
 
 
 
Assumptions Used to Determine The Fair Value of Options Granted
The assumptions used to determine the fair value of options granted are detailed in the table below.
 
2015
 
2014
Weighted-average risk-free interest rate
2.05
%
 
2.33
%
Dividend yield
3.02

 
2.71

Weighted-average expected market price volatility
26.48

 
26.66

Weighted-average expected term
5.7 years

 
7.1 years