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Stock-based compensation (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Allocation of Stock-based Compensation
Our share-based compensation expense recognized post Separation associated with Ingevity's incentive plan and the ESPP is included in the table below.
 
Years Ended December 31,
In millions
2017
 
2016
Stock option expense
$
1.5

 
$
0.7

ESPP expense
0.2

 
—

RSU, DSU and PSU expense
8.4

 
4.0

Total share-based compensation expense (1)
10.1

 
4.7

Income tax benefit
(3.8
)
 
(1.9
)
Total share-based compensation expense, net of tax
$
6.3

 
$
2.8


_______________
(1)
Amounts reflected in "Selling, general and administrative expenses" on the Consolidated Statements of Operations.
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques
Expense related to stock options granted from the Separation through December 31, 2017 was based on the assumptions shown in the table below:
 
Years Ended December 31,
Weighted-average assumptions used to calculate expense for stock options
2017
 
2016
Risk-free interest rate
2.1
%
 
1.6
%
Average life of options (years)
6.5

 
6.5

Volatility
35.0
%
 
35.0
%
Dividend yield
—

 
—

Fair value per stock option
$
20.71

 
$
10.61
Disclosure of Stock-based Compensation Arrangements by Stock-based Payment Award
The following table summarizes Ingevity's stock option activity for the period from the Separation through December 31, 2017, as there was no Ingevity stock option activity prior to Separation.
 
Number of shares (in thousands)
 
Weighted-average exercise price (per share)
 
Weighted-average remaining contractual term (years)
 
Aggregate intrinsic value (in thousands)
Outstanding, May 16, 2016
—

 
$
—

 
 
 
 
Granted
208

 
28.03

 
 
 
 
Exercised
—

 
—

 
 
 
 
Forfeited
—

 
—

 
 
 
 
Canceled
—

 
—

 
 
 
 
Outstanding, December 31, 2016
208

 
28.03

 
9.4
 
$
5,573

Granted
109

 
53.11

 
 
 
 
Exercised
(7
)
 
27.38

 
 
 
 
Forfeited
(7
)
 
31.97

 
 
 
 
Canceled
—

 
—

 
 
 
 
Outstanding, December 31, 2017
303

 
36.72

 
8.7
 
10,022

Exercisable, December 31, 2017
5

 
$
27.90

 
8.4
 
$
213
Schedule of Nonvested Share Activity
RSUs, DSUs and PSUs activity for the period from the Separation through December 31, 2017, as there was no Ingevity stock option activity prior to Separation.
 
RSUs and DSUs
 
PSUs
 
Number of shares (in thousands) (1)
 
Weighted average grant date fair value (per share)
 
Number of shares (in thousands) (1)
 
Weighted average grant date fair value (per share)
Nonvested, May 15, 2016
—

 
—

 
—

 
—

Granted
190

 
28.08

 
127

 
28.06

Vested
(23
)
 
27.90

 
—

 
—

Forfeited
—

 
—

 
—

 
—

Nonvested, December 31, 2016
167

 
28.08

 
127

 
28.06

Granted
61

 
57.21

 
66

 
53.11

Vested
(75
)
 
28.47

 
—

 
—

Forfeited
(4
)
 
31.00

 
(9
)
 
27.90

Nonvested, December 31, 2017(2)
149

 
$
39.67

 
184

 
$
37.10


_______________
(1)
The number granted represents the number of shares issuable upon vesting of RSUs and DSUs. For PSUs the number granted represents the number of shares issuable upon vesting assuming that Ingevity performs at the target performance level in each year of the three-year performance period.
(2)
The nonvested RSU and DSU number of shares at December 31, 2017 and 2016, includes 8 thousand and zero DSUs, respectively.