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Share-Based Compensation
 6 Months Ended
Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based Compensation.  Under the 2012 Plan, which provides for grants of equity-based incentive compensation, 4.3 million shares of common stock were initially reserved for issuance and, as of June 30, 2015, 1,277,179 shares of the Company’s common stock remained available for future issuance, which is reflective of a 2.7 million share reduction for outstanding equity awards replaced in the separation transaction from Matson, Inc. in 2012. The shares of common stock authorized to be issued under the 2012 Plan may be drawn from the shares of the Company’s authorized but unissued common stock or from shares of its common stock that the Company acquires, including shares purchased on the open market or in private transactions.

The Company does not currently grant stock options under its share-based equity program. The last grant of options occurred in January 2012. Activity in the Company’s stock option plans in 2015 was as follows (in thousands, except weighted average exercise price and weighted average contractual life):
 
2012
Plan
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Contractual
Life
 
Aggregate
Intrinsic
Value
Outstanding, January 1, 2015
1,124.6

 
$
18.84

 
 
 
 
Exercised
(25.9
)
 
$
20.13

 
 
 
 
Outstanding, June 30, 2015
1,098.7

 
$
18.81

 
4.1
 
$
22,635

Exercisable, June 30, 2015
1,098.7

 
$
18.81

 
4.1
 
$
22,635



The following table summarizes non-vested restricted stock unit activity through June 30, 2015 (in thousands, except weighted average grant-date fair value amounts):
 
2012
Plan
Restricted
Stock
Units
 
Weighted
Average
Grant-Date
Fair Value
Outstanding, January 1, 2015
279.0

 
$
33.76

Granted
124.7

 
$
40.85

Vested
(103.1
)
 
$
31.78

Canceled
(25.4
)
 
$
35.15

Outstanding, June 30, 2015
275.2

 
$
37.59



A portion of the restricted stock unit awards are time-based awards that vest ratably over three years. The remaining portion of the awards represents market-based awards that cliff vest after two or three years, provided that the total shareholder return of the Company’s common stock over the relevant measurement period meets or exceeds pre-defined levels of relative total shareholder returns of the Standard & Poor’s MidCap 400 index and the Russell 2000 index.

The fair value of the Company’s time-based awards is determined using the Company’s stock price on the date of grant. The fair value of the Company’s market-based awards is estimated using the Company’s stock price on the date of grant and the probability of vesting using a Monte Carlo simulation with the following weighted average assumptions:
 
2015 Grants
2014 Grants
Volatility of A&B common stock
29.5%
25.4%
Average volatility of peer companies
34.2%
27.3%
Risk-free interest rate
0.7%
0.4%


A summary of compensation cost related to share-based payments is as follows (in millions):
 
Quarter Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Share-based expense (net of estimated forfeitures):
 
 
 
 
 
 
 
Stock options
$
—

 
$
0.1

 
$
—

 
$
0.3

Restricted stock units
1.1

 
1.1

 
2.3

 
2.1

Total share-based expense
1.1

 
1.2

 
2.3

 
2.4

Total recognized tax benefit
(0.3
)
 
(0.3
)
 
(0.6
)
 
(0.7
)
Share-based expense (net of tax)
$
0.8

 
$
0.9

 
$
1.7

 
$
1.7