Long-term Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2017

During the nine months ended September 30, 2017, the Company granted RSUs under the 2013 Plan as follows:



	RSUs	Weighted average grant date fair value		Weighted average vesting period (months)
RSUs granted	1,100,481	$	16.18	31.7

The following assumptions were used to estimate the grant date fair value of RSUs containing a market vesting condition:



	Monte Carlo input assumptions
Weighted average expected term (years) ⁽¹⁾	3.00
Expected volatility ⁽²⁾	52.1%
Risk-free rate ⁽³⁾	1.50%


⁽¹⁾	Weighted average expected term is calculated based on the award service period.


⁽²⁾	Expected volatility is calculated based on a blend of the implied and historical equity volatility of an index of comparable companies over a period equal to the expected term.


⁽³⁾	Risk-free rate of return is based on an interpolation of U.S. Treasury rates to reflect an expected term of three years at the date of grant.

September 30, 2017, the following equity classified RSUs were outstanding:



	September 30, 2017
Vesting Conditions:	Outstanding	Weighted average remaining service period (months)	Potential additional awards
Service-based	972,580	20.2	—
Performance-based	998,045	21.7	672,886
Market-based	824,114	23.6	1,554,968
Total	2,794,739	21.7	2,227,854

During the nine months ended September 30, 2017, the Company granted non-qualified stock options under the 2013 Plan as follows:



	Stock Options	Weighted average strike price per share		Weighted average grant date fair value per share
Stock options granted	256,202	$	13.30	$	6.05

The following table provides the range of assumptions used in valuing stock option grants using the Black-Scholes option pricing method:



	Black-Scholes input assumptions
Weighted average expected term (years) ⁽¹⁾	6.0
Expected volatility ⁽²⁾	45.0%
Risk-free rate ⁽³⁾	2.09%
Expected dividend rate	—%


⁽¹⁾	Weighted average expected term is calculated based on the simplified method for plain vanilla options as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis upon which to estimate expected term and certain alternative information to assist with estimating it is not easily obtainable.


⁽²⁾	Expected volatility is calculated based on a blend of the implied and historical equity volatility of an index of comparable companies over a period equal to the expected term.


⁽³⁾	Risk-free rate of return is based on an interpolation of U.S. Treasury rates to reflect an expected term of six years at the date of grant.