Share-Based Payment Awards

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Payment Awards

SHARE-BASED PAYMENT AWARDS

The 2012 Incentive Compensation Plan ("2012 Plan") allows for the granting of stock options, restricted stock units and common stock. 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 private transactions.

The following table summarizes the Company's stock option activity for the three months ended March 31, 2020 (in thousands, except weighted-average exercise price and weighted-average contractual life):

	2012 Plan Stock Options	Weighted- Average Exercise Price		Weighted- Average Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2020	352.2	$	13.95
Exercised	(7.3)	$	11.38
Outstanding, March 31, 2020	344.9	$	14.00	1.3 years	$	—
Vested or expected to vest	344.9	$	14.00	1.3 years	$	—
Exercisable, March 31, 2020	344.9	$	14.00	1.3 years	$	—

The following table summarizes non-vested restricted stock unit activity for the three months ended March 31, 2020 (in thousands, except weighted-average grant-date fair value amounts):

	2012 Plan Restricted Stock Units	Weighted- Average Grant-date Fair Value
Outstanding, January 1, 2020	454.7	$	23.88
Granted	225.7	$	24.59
Vested	(88.2)	$	25.92
Canceled	(43.3)	$	26.60
Outstanding, March 31, 2020	548.9	$	23.63

The time-based restricted stock units granted to employees vest ratably over a period of three years. The time-based restricted stock units granted to non-employee directors prior to 2018 vest ratably over a period of three years, and commencing in 2018, the time-based restricted stock units granted to non-employee directors vest over one year. The market-based performance share units cliff vest over three years, provided that the total shareholder return of the Company's common stock over the relevant period meets or exceeds pre-defined levels of total shareholder returns relative to indices, as defined.

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:

	Three Months Ended March 31,
	2020 Grants		2019 Grants
Volatility of A&B common stock	22.6	%	23.6	%
Average volatility of peer companies	23.2	%	24.3	%
Risk-free interest rate	1.3	%	2.6	%

The Company recognizes compensation cost net of actual forfeitures of time-based or market-based awards. A summary of compensation cost related to share-based payments is as follows (in millions):

	Three Months Ended March 31,
	2020		2019
Share-based expense:
Time-based and market-based restricted stock units	$	1.5	$	1.4