Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v3.8.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Valuation Assumptions
The following table summarizes the assumptions used to measure the fair value of the annual grant of performance awards that are also indexed to the achievement of specified levels of absolute total shareholder return:
 
2017
 
2016
Weighted-average grant-date fair value
$15.41
 
$12.44
 
 
 
 
Assumptions
 
 
 
Risk-free rate of return
1.6
%
 
0.8
%
Expected volatility
31.4
%
 
36.2
%
Expected term (in years)
3.0

 
2.8

Expected dividend yield

 

Summary of Non-Employee RSU Activity
The fair value of non-employee director RSUs was measured using our stock price on the date of grant. The following table summarizes activity related to the non-employee director RSUs.
 
2017
 
2016
Vested and not yet delivered as of December 31,
140,146
 
93,428
Granted
48,722
 
76,511
Outstanding as of December 31,
188,868
 
163,040
Summary of Performance Share Activity
The table below summarizes activity related to the PSAs, PSUs, and RSUs. The non-employee director activity is not reflected in the RSU activity below.
 
 
PSAs and PSUs
 
RSUs
 
 
Number of Shares (in thousands)
 
Weighted-Average Grant-Date Fair Value (per share)
 
Number of Shares (in thousands)
 
Weighted-Average Grant-Date Fair Value (per share)
Non-vested as of December 31, 2016
 
801.9

 
$
12.88

 
362.8

 
$
14.56

Granted
 
317.8

 
16.54

 
121.0

 
17.21

Vested
 
(50.3
)
 
14.63

 
(213.6
)
 
14.68

Forfeited
 
(176.7
)
 
13.62

 
(38.6
)
 
14.98

Non-vested as of December 31, 2017
 
892.7

 
13.93

 
231.6

 
15.77

Summary of Stock Option Exercises
The modified PSUs were initially issued with performance conditions based on AWI's results. At modification, two of the three years of performance had occurred. For the third year, which occurred after the Spin-off, award payout was at the target level.

The following table summarizes information about AFI's modified stock options:
 
 
Number of Shares (in thousands)
 
Weighted-Average Exercise Price (per share)
 
Weighted-Average Remaining Contractual Term (years)
 
Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2016
 
639.1

 
$
12.87

 
 
 
 
Exercised
 
(105.5
)
 
13.41

 
 
 
 
Outstanding December 31, 2017
 
533.6

 
12.77

 
4.7
 
$
2.2

Options exercisable
 
533.6

 
12.77

 
4.7
 
2.2

The following table presents information related to stock option exercises:
 
Year Ended December 31,
 
2017
 
2016
Total intrinsic value of stock options exercised
$
0.5

 
$
0.2

Cash proceeds received from stock options exercised
1.4

 
0.3

Schedule of Restricted Stock Unit Award Activity
The table below summarizes activity related to the PSAs, PSUs, and RSUs. The non-employee director activity is not reflected in the RSU activity below.
 
 
PSAs and PSUs
 
RSUs
 
 
Number of Shares (in thousands)
 
Weighted-Average Grant-Date Fair Value (per share)
 
Number of Shares (in thousands)
 
Weighted-Average Grant-Date Fair Value (per share)
Non-vested as of December 31, 2016
 
801.9

 
$
12.88

 
362.8

 
$
14.56

Granted
 
317.8

 
16.54

 
121.0

 
17.21

Vested
 
(50.3
)
 
14.63

 
(213.6
)
 
14.68

Forfeited
 
(176.7
)
 
13.62

 
(38.6
)
 
14.98

Non-vested as of December 31, 2017
 
892.7

 
13.93

 
231.6

 
15.77

Summary of Stock-based Compensation and Related Tax Effects
Total stock-based compensation expense included in the Consolidated Statements of Operations and Comprehensive Income (Loss) and the related tax effects are presented in the table below:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Stock-based compensation expense
$
2.3

 
$
6.7

 
$
6.1

Income tax benefit
0.8

 
2.5

 
2.1