Share-Based Payment Awards

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

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. During the six months ended June 30, 2020, the Company granted approximately 271,800 restricted stock units with a weighted average grant date fair value of $22.57 under the 2012 Plan. During the six months ended June 30, 2019, the Company granted approximately 239,500 restricted stock units with a weighted average grant date fair value of $22.10 under the 2012 Plan.

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:


	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 June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Share-based expense:
Time-based and market-based restricted stock units	$	1.5	$	1.3	$	3.0	$	2.7