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Long-term Compensation Plans
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
LONG-TERM COMPENSATION PLANS LONG-TERM COMPENSATION PLANS
In June 2014, the Company's stockholders adopted the 2013 Plan, which is administered by the compensation committee of the Board, except as otherwise expressly provided in the 2013 Plan.  The Board approved a maximum of 15,500,000 shares of common stock, which were reserved and made available for issuance under the 2013 Plan.
For 2018, 2017 and 2016, compensation expense associated with the Company's long-term compensation plans was as follows:
 
 
Year Ended December 31,
  ($ amounts in millions)
 
2018
 
2017
 
2016
Equity classified RSUs
 
$
13.9

 
$
8.3

 
$
5.4

Liability classified RSUs
 
0.7

 
0.6

 
0.4

Stock options
 
0.8

 
0.7

 
0.4

Compensation expense from continuing operations
 
15.4

 
9.6

 
6.2

Compensation expense from discontinued operations
 
3.9

 
2.2

 
1.1

Total
 
$
19.3

 
$
11.8

 
$
7.3

 
 
 
 
 
 
 
Unrecognized compensation expense for awards expected to vest
 
 
 
 
 
 
Continuing operations
 
14.7

 
 
 
 
Discontinued operations
 
3.6

 
 
 
 
Weighted average remaining vesting period (months)
 
13

 
 
 
 

At December 31, 2018, a total of 1,484,776 shares of common stock had been issued, and 3,890,643 RSUs and stock options were outstanding under the 2013 Plan.
 
 
Total
 
RSUs
 
Stock Options (1)
 
 
Equity
Classified
 
Liability
Classified
 
Outstanding at December 31, 2017
 
3,675,726

 
2,623,851

 
319,678

 
732,197

Granted
 
1,581,444

 
1,581,444

 
—

 
—

Exercised/Issued
 
(988,573
)
 
(968,148
)
 
—

 
(20,425
)
Cancelled
 
(198,313
)
 
(23,313
)
 
—

 
(175,000
)
Forfeited
 
(179,641
)
 
(179,641
)
 
—

 
—

Outstanding at December 31, 2018
 
3,890,643

 
3,034,193

 
319,678

 
536,772


(1)        Beginning balance includes 175,000 stock options issued outside of the 2013 Plan, which expired without being exercised in 2018.
The total fair value of RSUs which vested during 2018, 2017 and 2016 was $9.9 million, $1.4 million and $0.1 million respectively, based on vesting date market prices.
Equity Classified RSUs
The Company granted the following equity classified RSUs under the 2013 Plan:
Year of Issuance:
 
RSUs
 
Weighted average grant date fair value
 
Weighted average vesting period (months)
2018
 
1,581,444

 
$
10.35

 
26
2017
 
1,117,719

 
$
16.08

 
31
2016
 
1,754,868

 
$
10.85

 
34

Certain of the RSUs granted during the period contain performance vesting conditions in addition to a service vesting condition. RSUs granted with service or performance vesting conditions were valued at the grant date stock price. Certain of the RSUs contain a market vesting condition based on the performance of the Company's common stock relative to the S&P MidCap 400. The grant date fair value of these RSUs was determined using a Monte Carlo simulation. Certain of the RSUs with performance or market vesting conditions also contain provisions for additional share awards in the event certain performance or market conditions are met at the end of certain applicable measurement periods. These conditions are generally based on Adjusted EBITDA, return on invested capital ("ROIC") or total stockholder return ('TSR") targets.
The following table provides the range of assumptions used in valuing RSUs containing market vesting conditions for the years ended December 31, 2017 and 2016, as there were no RSUs containing market vesting conditions granted in 2018:
 
 
2017
 
2016
Weighted average expected term (years) (1)
 
3.00
 
3.00
Expected volatility (2)
 
52.1%
 
53.0%
Risk-free rate (3)
 
1.50%
 
1.05%
(1)  
Weighted average expected term is calculated based on the award vesting 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.
At December 31, 2018, the following equity classified RSUs were outstanding:
 
 
December 31, 2018
Vesting Conditions:
 
Outstanding
 
Weighted average remaining vesting period (months)
 
Potential additional awards
Service-based
 
1,002,085

 
6
 
—

Performance-based
 
1,482,846

 
18
 
1,351,323

Market-based
 
549,262

 
10
 
1,121,093

Total
 
3,034,193

 
13
 
2,472,416


For all equity classified RSUs, shares are issued immediately upon satisfaction of vesting conditions.
Liability Classified RSUs
During 2014, the Company granted to certain employees RSUs which vest on December 31, 2020.  These RSUs are subject to an Adjusted EBITDA performance condition and share price market condition.  Additionally, the number of shares of common stock to be issued was limited to a maximum cash value, requiring these awards to be classified as liabilities.  Compensation expense was calculated based on a market value that is remeasured each reporting period.
Stock Options
The Company granted the following non-qualified stock options under the 2013 Plan:
Year of Issuance:
 
Stock Options
 
Weighted average strike price per share
 
Weighted average grant date fair value per share
2017
 
256,202

 
$
13.30

 
$
6.05

2016
 
390,198

 
$
8.05

 
$
4.35


Stock options vest ratably over a three-year period and have contractual lives of ten years from the grant date.
The fair value of the grants is calculated using the Black-Scholes option pricing model at the grant date. The following table provides the range of assumptions used in valuing stock options for the years ended December 31, 2017 and 2016, as there were no stock options granted in 2018:
 
 
Year Ended December 31,
 
 
2017
 
2016
Weighted average expected term (years) (1)
 
6.0
 
6.0
Expected volatility (2)
 
45.0%
 
53.0%
Risk-free rate (3)
 
2.09%
 
1.52% to 1.56%
Expected dividend rate
 
—%
 
—%
(1)  
Weighted average expected term is calculated based on the simplified method for plain vanilla options.
(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.
At December 31, 2018, there were 75,070 outstanding stock options with an exercise price of $13.30, which were vested and out-of-the-money, 207,708 outstanding stock options which were vested and in-the-money, with an aggregate intrinsic value of $0.5 million, and 253,994 outstanding stock options which were unvested, with an aggregate intrinsic value of $0.2 million.
Subsequent Event
On January 30, 2019, the Compensation Committee granted to certain key executives 2.2 million performance-based RSUs with an aggregate grant date fair value of $24.6 million which vesting is subject to the achievement by the Company of a certain performance target in any fiscal year ending on or before December 31, 2022, and continuous service. The achievement of this performance target is not probable at this time.