Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Allocation of Stock-based Compensation

Our share-based compensation and ESPP expense is included in the table below.

	Years Ended December 31,
In millions	2021		2020		2019
Stock option expense	$	1.7	$	0.6	$	3.0
ESPP expense	0.6		0.5		0.7
RSU, DSU and PSU expense	10.0		7.3		8.6
Total share-based compensation expense (1)	$	12.3	$	8.4	$	12.3
Income tax benefit	(2.3)		(1.5)		(2.2)
Total share-based compensation expense, net of tax	$	10.0	$	6.9	$	10.1

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(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 is based on the assumptions shown in the table below:

	Years Ended December 31,
Weighted-average assumptions used to calculate expense for stock options	2021			2020			2019
Risk-free interest rate	1.0		%	1.0		%	2.6		%
Average life of options (years)	6.5			6.5			6.5
Volatility	46.0		%	33.5		%	28.0		%
Dividend yield	—			—			—
Fair value per stock option	$	33.07		$	15.87		$	39.29

Disclosure of Stock-based Compensation Arrangements by Stock-based Payment Award

The following table summarizes Ingevity's stock option activity.

	Number of Options (in thousands)	Weighted-average exercise price (per share)		Weighted-average remaining contractual term (years)	Aggregate intrinsic value (in thousands)
Outstanding, December 31, 2020	346	$	57.28	7.2	$	7,919
Granted	62	69.63
Exercised	(59)	46.75
Forfeited	—	—
Canceled	(11)	61.48
Outstanding, December 31, 2021	338	$	61.34	6.7	$	5,366
Exercisable, December 31, 2021	228	$	59.71	5.9	$	4,150

Schedule of Nonvested Share Activity

The following table summarizes Ingevity's RSUs, DSUs, and PSUs activity.

	RSUs and DSUs			PSUs
	Number of Units (in thousands) (1)	Weighted average grant date fair value (per share)		Number of Units (in thousands) (1)	Weighted average grant date fair value (per share)
Nonvested, December 31, 2020	171	$	59.75	142	$	66.22
Granted	155	70.89		71	69.60
Vested	(77)	57.88		(37)	74.91
Forfeited	(6)	64.60		(10)	63.01
Nonvested, December 31, 2021 (2)	243	$	67.36	166	$	65.91

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(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) Excludes 4,783 non-employee director shares that were vested but unissued at December 31, 2021.