Equity-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

The following table sets forth a summary of the Company's stock option activity for the three months ended March 31, 2014:



Options	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2014	1,280,255		$	17.00
Granted	1,223,388		$	24.29
Forfeited/Expired	—		$	—
Exercised	(7,807	)	$	17.00		$	0.1
Outstanding at March 31, 2014	2,495,836		$	20.57	9.0	$	17.1
Vested at March 31, 2014	448,464		$	17.00	7.9	$	4.7
Exercisable at March 31, 2014	448,464		$	17.00	7.9	$	4.7
Expected to vest at March 31, 2014	1,973,141		$	21.36	9.3	$	12.0

The assumptions used to value the stock options granted during the three months ended March 31, 2014 are presented below.



Assumptions	Three Months Ended March 31, 2014
Weighted-average grant date fair value	$	7.20
Weighted-average volatility ⁽¹⁾	30.00		%
Weighted-average risk-free rate ⁽²⁾	1.77		%
Dividend yield	0.70		%
Expected term (in years) ⁽³⁾	6.0


(1)	Based upon an assessment of the two-year, five-year and implied volatility for the Company’s selected peer group, adjusted for the Company’s leverage.


(2)	Based on a composite U.S. Treasury rate.


(3)	The expected term is calculated using the simplified method. The simplified method defines the expected term as the average of the option’s contractual term and the option’s weighted-average vesting period. The Company utilizes this method as it has limited historical stock option data that is sufficient to derive a reasonable estimate of the expected stock option term.

The following table sets forth a summary of the Company's restricted stock unit activity for the three months ended March 31, 2014:



	Number of Units		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2014	1,351,572		$	17.04
Granted	25,773		24.29
Vested/Settled	(596	)	17.00
Forfeited	(33,992	)	17.00
Nonvested at March 31, 2014	1,342,757		$	17.18