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Stock-Based and Deferred Compensation Plans
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans [Text Block]
Stock-Based and Deferred Compensation Plans

The Company may grant stock options, stock appreciation rights, performance-based awards, restricted stock units, and time-based restricted shares to officers and key employees under the 2017 Long-Term Incentive Plan and stock options, restricted shares, and restricted stock units to directors under the 2017 Stock Plan for Non-Employee Directors. The maximum number of shares authorized and available for award under the 2017 plans at December 31, 2018 was 2.5 million.
On May 2, 2017, the 2007 Long Term Incentive Plan and 2007 Stock Option Plan for Non-Employee Directors both expired. Under the 2007 Long Term Incentive Plan, the Company granted stock options, stock appreciation rights, performance-based awards, and time-based restricted shares to officers and key employees. Under the 2007 Stock Option Plan for Non-Employee Directors, the Company granted stock options, restricted shares, and restricted stock units to directors. The Company no longer grants shares under the 2007 plans as of May 2, 2017.
On July 2, 2018, the Company completed its acquisition of Hawaiian Telcom. In conjunction with the acquisition, the Company assumed responsibility for the eventual payout of certain stock-based compensation awards that were previously granted to Hawaiian Telcom employees under the Hawaiian Telcom 2010 Equity Incentive Plan. These awards were originally granted by Hawaiian Telcom in the first quarter of 2017 and in the first quarter of 2018, before the merger with Cincinnati Bell was completed. Going forward, all stock-based compensation awards for Hawaiian Telcom employees will be granted under the 2017 Long-Term Incentive Plan.
Stock Options and Stock Appreciation Rights
Generally, the awards of stock options and stock appreciation rights fully vest three years from grant date and expire ten years from grant date. Beginning in 2012, some of the stock options vested over a three year period based on the achievement of certain performance objectives. The Company generally issues new shares when options to purchase common shares or stock appreciation rights are exercised. The following table summarizes stock options and stock appreciation rights activity:
 
2018
 
2017
 
2016
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
 
Shares
 
Outstanding at January 1,
181

 
$
17.10

 
390

 
$
20.00

 
776

 
$
19.27

Exercised
(19
)
 
8.68

 
(35
)
 
15.76

 
(236
)
 
16.12

Forfeited
(9
)
 
17.05

 
(35
)
 
21.58

 
(11
)
 
16.16

Expired
(2
)
 
8.35

 
(139
)
 
24.55

 
(139
)
 
22.79

Outstanding at December 31,
151

 
$
18.29

 
181

 
$
17.10

 
390

 
$
20.00

Expected to vest at December 31,
151

 
$
18.29

 
181

 
$
17.10

 
390

 
$
20.00

Exercisable at December 31,
151

 
$
18.29

 
181

 
$
17.10

 
330

 
$
20.56

 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for the year
$
—

 
 
 
$
0.2

 
 
 
$
0.4

 
 
Tax benefit related to compensation expense
$
—

 
 
 
$
(0.1
)
 
 
 
$
(0.1
)
 
 
Intrinsic value of awards exercised
$
0.1

 
 
 
$
0.2

 
 
 
$
1.8

 
 
Cash received from awards exercised
$
0.2

 
 
 
$
0.5

 
 
 
$
3.8

 
 
Grant date fair value of awards vested
$
—

 
 
 
$
0.3

 
 
 
$
0.5

 
 

The following table summarizes our outstanding and exercisable awards at December 31, 2018:
 
Outstanding
 
Exercisable
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
Range of Grant Price
 
 
 
 
 
 
 
$14.55 to $17.05
123

 
$
17.04

 
123

 
$
17.04

$23.75 to $26.05
28

 
23.83

 
28

 
23.83

Total
151

 
$
18.29

 
151

 
$
18.29


As of December 31, 2018, the aggregate intrinsic value for awards outstanding and exercisable was zero. The weighted-average remaining contractual life for awards outstanding and exercisable is approximately five years. As of December 31, 2018, there was no remaining unrecognized stock compensation expense related to stock options or stock appreciation rights.
Performance-Based Restricted Awards
Awards granted generally vest over three years and upon the achievement of certain performance-based objectives. Performance-based awards are expensed based on their grant date fair value if it is probable that the performance conditions will be achieved.
The following table summarizes our outstanding performance-based restricted award activity:
 
2018
 
2017
 
2016
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
 
Shares
 
Non-vested at January 1,
871

 
$
17.30

 
954

 
$
15.89

 
721

 
$
16.77

Granted*
288

 
17.60

 
245

 
22.03

 
307

 
15.45

Vested
(308
)
 
15.45

 
(229
)
 
16.74

 
(51
)
 
22.75

Forfeited
(159
)
 
15.45

 
(99
)
 
16.62

 
(23
)
 
22.35

Non-vested at December 31,
692

 
$
18.67

 
871

 
$
17.30

 
954

 
$
15.89

 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for the year
$
2.1

 
 
 
$
3.9

 
 
 
$
3.6

 
 
Tax benefit related to compensation expense
$
(0.5
)
 
 
 
$
(1.4
)
 
 
 
$
(1.3
)
 
 
Grant date fair value of awards vested
$
4.7

 
 
 
$
3.8

 
 
 
$
1.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Assumes the maximum number of awards that can be earned if the performance conditions are achieved.

As of December 31, 2018, unrecognized compensation expense related to performance-based awards was $7.7 million, assuming maximum performance attainment, which is expected to be recognized over a weighted-average period of approximately one year.
Time-Based Restricted Awards

Awards granted to Cincinnati Bell employees in 2018, 2017 and 2016 vest at the end of a three year period. Awards granted to directors in 2018, 2017 and 2016 vest on the first anniversary of the grant date.

As part of the terms of the acquisition of Hawaiian Telcom, certain stock-based compensation awards granted by Hawaiian Telcom before the merger date were converted to time-based restricted stock units. The Company assumed responsibility for the eventual payout of these time-based restricted stock units as part of the acquisition. These awards were originally granted by Hawaiian Telcom in the first quarter of 2017 and 2018, and vest in one-fourth increments over a period of four years. One-fourth of the awards granted in the first quarter of 2017 vested and were distributed by Hawaiian Telcom prior to July 2, 2018. All remaining awards that vest after July 2, 2018 will be distributed by Cincinnati Bell Inc.

The following table summarizes our time-based restricted award activity: 
 
2018
 
2017
 
2016
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
 
Shares
 
Non-vested at January 1,
164

 
$
18.57

 
106

 
$
16.75

 
47

 
$
19.59

Granted
245

 
17.05

 
96

 
20.78

 
106

 
16.75

Awards converted pursuant to Hawaiian Telcom acquisition
149

 
15.70

 
—

 
—

 
—

 
—

Vested
(61
)
 
18.08

 
(38
)
 
19.10

 
(47
)
 
19.59

Non-vested at December 31,
497

 
$
17.02

 
164

 
$
18.57

 
106

 
$
16.75

 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for the year
$
3.5

 
 
 
$
1.8

 
 
 
$
1.1

 
 
Tax benefit related to compensation expense
$
(0.8
)
 
 
 
$
(0.6
)
 
 
 
$
(0.4
)
 
 
Grant date fair value of awards vested
$
1.1

 
 
 
$
0.7

 
 
 
$
0.9

 
 

As of December 31, 2018, there was $4.0 million of unrecognized compensation expense related to these restricted stock awards, which is expected to be recognized over a weighted-average period of approximately two years.