Share-Based Compensation Plans

12 Months Ended

Nov. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation Plans

Share-Based Compensation Plans

The OMNOVA Solutions Third Amended and Restated 1999 Equity and Performance Incentive Plan (the “Plan”) permits the Company to grant to officers, key employees, and non-employee directors of the Company incentives directly linked to the price of OMNOVA Solutions’ common shares. The Plan, by virtue of the three amendments approved by shareholders since the original plan was approved in 1999, authorizes up to 9.6 million shares of Company shares in the aggregate for 1) awards of options to purchase shares of OMNOVA Solutions’ common shares, 2) performance shares and performance units, 3) restricted shares, 4) deferred shares, or 5) appreciation rights. Shares used may be either newly issued shares, treasury shares, or both. As of November 30, 2016, approximately 1.2 million shares of Company common shares remained available for grants under the Plan. All options granted under the Plan have been granted at exercise prices equal to the market value of the Company’s common shares on the date of grant. Additionally, the Plan provides that the term of any stock option granted under the Plan may not exceed 10 years.

Share-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period).

For options, the fair value calculation is estimated using a Black-Scholes based option valuation model. For restricted shares grants, which consist of the Company’s common shares, the fair value is equal to the market price of the Company’s shares on the date of grant. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

Note O—Share-Based Compensation Plans (Continued)

A summary of the Company’s stock option activity and related information for the years ended 2016, 2015, and 2014 are as follows:

	2016				2015				2014
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of year	2,000		$	6.12	9,250		$	5.15	78,250		$	5.60
Forfeited or expired	(1,000	)	$	6.01	(3,750	)	$	4.70	(6,500	)	$	5.21
Exercised	(1,000	)	$	6.23	(3,500	)	$	5.07	(62,500	)	$	5.71
Outstanding at end of year	—		$	—	2,000		$	6.12	9,250		$	5.15

A summary of the Company’s restricted share activity and related information for the years ended November 30, 2016, 2015, and 2014 are as follows:

	2016			2015			2014
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Non-vested at beginning of year	872,200	$	8.13	919,950	$	7.63	956,076	$	7.03
Granted	416,500	$	5.44	329,350	$	7.26	341,350	$	9.31
Vested	(258,900)	$	7.91	(333,350)	$	5.88	(332,776)	$	7.60
Forfeited	(21,650)	$	8.26	(43,750)	$	8.32	(44,700)	$	7.91
Non-vested at end of year	1,008,150	$	7.23	872,200	$	8.13	919,950	$	7.63

Compensation expense for all share-based payments included in general and administrative expense was $2.5 million, $2.4 million, and $2.7 million during 2016, 2015 and 2014, respectively.

As of November 30, 2016, there was $3.0 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements to be amortized over the next 2.4 years.

The intrinsic value of stock options exercised was less than $0.1 million in 2016, $0.1 million, and $0.2 million in 2015 and 2014, respectively. The intrinsic value of stock options that were outstanding was less than $0.1 million as of November 30, 2015.