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Equity Incentive Plan (Tables)
 3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Schedule of restricted stock award activity
The following table reflects the restricted stock award activity for the three months ended March 31, 2020:
(in thousands, except for weighted-average grant-date fair value)
 
Restricted stock awards
 
Weighted-average
grant-date fair value
(per share)
Outstanding as of December 31, 2019
 
5,498

 
$
4.29

Granted
 
2,771

 
$
0.92

Forfeited
 
(139
)
 
$
5.06

Vested(1)
 
(1,867
)
 
$
5.03

Outstanding as of March 31, 2020
 
6,263

 
$
2.56

_____________________________________________________________________________
(1)
The aggregate intrinsic value of vested restricted stock awards for the three months ended March 31, 2020 was $2.4 million.
Schedule of stock option award activity
The following table reflects the stock option award activity for the three months ended March 31, 2020:
(in thousands, except for weighted-average exercise price and weighted-average remaining contractual term)
 
Stock
option awards
 
Weighted-average
exercise price
(per option)
 
Weighted-average
remaining contractual term
(years)
Outstanding as of December 31, 2019
 
340

 
$
12.56

 
5.00
Exercised
 
—

 
$
—

 
 
Expired or canceled
 
—

 
$
—

 
 
Forfeited
 
—

 
$
—

 
 
Outstanding as of March 31, 2020
 
340

 
$
12.56

 
4.71
Vested and exercisable as of March 31, 2020(1)
 
330

 
$
12.51

 
4.64
Expected to vest as of March 31, 2020(2)
 
10

 
$
14.12

 
6.89
_____________________________________________________________________________
(1)
The vested and exercisable stock option awards as of March 31, 2020 had no intrinsic value.
(2)
The expected to vest stock option awards as of March 31, 2020 had no intrinsic value.
Schedule of performance share and unit award activity
The following table reflects the performance share award activity for the three months ended March 31, 2020:
(in thousands, except for weighted-average grant-date fair value)
 
Performance
share awards
 
Weighted-average
grant-date fair value
(per share)
Outstanding as of December 31, 2019
 
2,300

 
$
5.34

Forfeited
 
(32
)
 
$
6.66

Vested(1)
 
(158
)
 
$
18.96

Outstanding as of March 31, 2020
 
2,110

 
$
4.30

______________________________________________________________________________
(1)
The performance share awards granted on February 17, 2017 had a performance period of January 1, 2017 to December 31, 2019 and, as their market criteria were not satisfied, resulted in a TSR modifier of 0% based on the Company finishing in the 15th percentile of its peer group for relative TSR. As such, the granted units lapsed and were not converted into the Company's common stock during the first quarter of 2020.
The following table reflects the performance unit award activity for the three months ended March 31, 2020:
(in thousands)
 
Performance units
Outstanding as of December 31, 2019(1)
 
—

Granted(2)
 
2,458

Outstanding as of March 31, 2020
 
2,458

______________________________________________________________________________
(1)
The performance unit awards granted on February 28, 2019 were originally determined to be liability awards due to the board of directors election to settle the awards in cash. These awards were converted to performance share awards during the second quarter of 2019. See Note 8.b in the 2019 Annual Report for additional information on the award conversion.
(2)
The amounts potentially payable in cash at the end of the requisite service period for the performance unit awards granted on March 5, 2020 will be determined based on three criteria: (i) RTSR Performance Percentage, (ii) ATSR Appreciation and (iii) ROACE Percentage. The RTSR Performance Percentage, ATSR Appreciation and ROACE Percentage will be used to identify the "RTSR Factor," the "ATSR Factor" and the "ROACE Factor," respectively, which are used to compute the "Performance Multiple" and ultimately to determine the final value of each performance unit to be paid in cash on the payment date per the award agreement, subject to withholding requirements. In computing the Performance Multiple, the RTSR Factor is given a 1/3 weight, the ATSR Factor a 1/3 weight and the ROACE Factor a 1/3 weight. These awards have a performance period of January 1, 2020 to December 31, 2022.
Schedule of assumptions used to estimate fair value
The following table presents the fair values per performance share and the expense per performance share, which is the fair value per performance share adjusted for the estimated payout of the performance criteria, for the outstanding performance share awards as of March 31, 2020 for the grant dates presented:
 
 
June 3, 2019
 
February 28, 2019(1)
 
February 16, 2018
Market Criteria:
 
 
 
 
 
 
(1/4) RTSR Factor + (1/4) ATSR Factor:
 
 
 
 
 
 
Grant-date fair value per performance share
 
$
2.45

 
$
3.98

 
$
10.08

Expense per performance share as of March 31, 2020
 
$
2.45

 
$
3.98

 
$
10.08

Performance Criteria:
 
 
 
 
 
 
(1/2) ROACE Factor:
 
 
 
 
 
 
Grant-date fair value per performance share
 
$
2.59

 
$
3.49

 
$
8.36

Estimated payout for expense as of March 31, 2020
 
175
%
 
175
%
 
75
%
Expense per performance share as of March 31, 2020(2)
 
$
4.53

 
$
6.11

 
$
6.27

Combined:
 
 
 
 
 
 
Grant-date fair value per performance share(3)
 
$
2.52

 
$
3.74

 
$
9.22

Expense per performance share as of March 31, 2020(4)

$
3.49

 
$
5.05

 
$
8.18

______________________________________________________________________________
(1)
The fair values of the performance shares granted on February 28, 2019 are based on the May 16, 2019 modification date. See Note 8.b in the 2019 Annual Report for additional information on the award conversion.
(2)
As the (1/2) ROACE Factor is based on performance criteria, the expense fluctuates based on the estimated payout and is redetermined each reporting period and the life-to-date recognized expense for the respective awards is adjusted accordingly.
(3)
The combined grant-date fair value per performance share is the combination of the fair value per performance share weighted for the market and performance criteria for the respective awards.
(4)
The combined expense per performance share is the combination of the expense per performance share for market and performance criteria for the respective awards.
The following table presents (i) the fair values per performance unit and the assumptions used to estimate these fair values per performance unit and (ii) the expense per performance unit, which is the fair value per performance unit adjusted for the estimated payout of the performance criteria, for the outstanding performance unit awards as of March 31, 2020 for the grant date presented:
 
 
March 5, 2020
Market criteria:
 
 
(1/3) RTSR Factor + (1/3) ATSR Factor:
 
 
Fair value assumptions:
 
 
Remaining performance period
 
2.75 years

Risk-free interest rate(1)
 
0.27
%
Dividend yield
 
—
%
Expected volatility(2)
 
97.85
%
Closing stock price on March 31, 2020
 
$
0.38

Fair value per performance unit as of March 31, 2020
 
$
0.43

Expense per performance unit as of March 31, 2020
 
$
0.43

Performance criteria:
 
 
(1/3) ROACE Factor:
 
 
Fair value assumptions:
 


Closing stock price on March 31, 2020
 
$
0.38

Fair value per performance unit as of March 31, 2020
 
$
0.38

Estimated payout for expense as of March 31, 2020
 
100.00
%
Expense per performance unit as of March 31, 2020(3)
 
$
0.38

Combined:
 
 
Fair value per performance unit as of March 31, 2020(4)
 
$
0.41

Expense per performance unit as of March 31, 2020(5)
 
$
0.41

______________________________________________________________________________
(1)
The remaining performance period matched zero-coupon risk-free interest rate was derived from the United States ("U.S.") Treasury constant maturities yield curve on March 31, 2020.
(2)
The Company utilized its own remaining performance period matched historical volatility in order to develop the expected volatility.
(3)
As the (1/3) ROACE Factor is based on performance criteria, the expense fluctuates based on the estimated payout and is redetermined each reporting period and the life-to-date recognized expense for the award is adjusted accordingly.
(4)
The combined fair value per performance unit is the combination of the fair value per performance unit weighted for the market and performance criteria for the award.
(5)
The combined expense per performance unit is the combination of the expense per performance unit for market and performance criteria for the award.
Schedule of phantom unit award activity
The following table reflects the phantom unit award activity for the three months ended March 31, 2020:
(in thousands, except for weighted-average grant-date fair value)
 
Phantom units
 
Fair value as of March 31, 2020
(per unit)
Outstanding as of December 31, 2019
 
—

 
$
—

Granted
 
1,509

 
$
0.38

Outstanding as of March 31, 2020
 
1,509

 
$
0.38
Schedule of allocated share-based compensation costs
The following table reflects equity-based compensation expense for the periods presented:
 
 
Three months ended March 31,
(in thousands)
 
2020
 
2019
Equity awards:
 
 
 
 
Restricted stock awards
 
$
2,498

 
$
5,323

Performance share awards
 
756

 
3,164

Outperformance share award
 
44

 
—

Stock option awards
 
43

 
818

Total share-settled equity-based compensation, gross
 
3,341

 
9,305

Less amounts capitalized
 
(965
)
 
(1,899
)
Total share-settled equity-based compensation, net
 
2,376

 
7,406

Liability awards:
 
 
 
 
Phantom unit awards
 
25

 
—

Performance unit awards
 
24

 
238

Total cash-settled equity-based compensation, gross
 
49

 
238

Less amounts capitalized
 
(10
)
 
(46
)
Total cash-settled equity-based compensation, net
 
39

 
192

Total equity-based compensation, net
 
$
2,415

 
$
7,598