Share-Based Compensation

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

We recognized the following employee share-based compensation expense during the second quarter and the first six months of 2017 and 2016:



	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2017		2016		2017		2016
Share-based compensation	$	17	$	17	$	41	$	38
Related tax benefit	—		4		—		8

During the first six months of 2017, we granted to certain employees approximately 2.9 million performance share units that will vest with continued employment if the Company meets certain market-based performance goals. The performance share units have a weighted average grant date fair value of $6.26 per share based on the Monte Carlo simulation method. The assumptions used in the Monte Carlo simulation included a weighted average risk-free rate of 1.16%, volatility of 67% and a zero dividend yield. As of June 30, 2017, there was $16 million of unrecognized compensation expense related to our performance share units. This cost is expected to be recognized over a weighted average period of 2 years.

During the first six months of 2017, we also granted 3.9 million restricted share units at a weighted average grant date fair value of $5.38 per share. As of June 30, 2017, there was $68 million of unrecognized compensation expense related to our unvested restricted share grants. This cost is expected to be recognized over a weighted average period of 2 years.