XML 46 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Employee Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
Inputs and assumptions used in the Monte Carlo simulations to calculate the fair value at grant date of our TSR-Based Performance Shares were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Grant date fair value
$
97.88

 
$
93.02

 
$
95.68

Grant date stock price
$
79.69

 
$
80.46

 
$
75.41

Expected volatility of Kaiser Aluminum1
22.74
%
 
17.81
%
 
19.03
%
Expected volatility of peer companies1
44.19
%
 
41.22
%
 
33.73
%
Risk-free interest rate
1.54
%
 
1.01
%
 
0.98
%
Dividend yield
2.50
%
 
2.24
%
 
2.12
%
_____________________
1. 
Expected volatility based on 2.8 years of daily closing share prices from the valuation date to the end of the performance period.
Non-cash compensation expense
Non-cash compensation expense by type of award under LTI Programs was as follows for each period presented (in millions of dollars):
 
Year Ended December 31,
 
2017
 
2016
 
2015
Non-vested common shares and restricted stock units
$
5.4

 
$
4.7

 
$
4.4

TSR-Based Performance Shares
4.8

 
5.4

 
4.0

CP-Based Performance Shares
2.7

 
1.3

 
—

EVA-Based Performance Shares
0.2

 
0.3

 
0.9

Total non-cash compensation expense
$
13.1

 
$
11.7

 
$
9.3

The following table presents the allocation of the charges detailed above, by segment (in millions of dollars):
 
Year Ended December 31,
 
2017
 
2016
 
2015
Fabricated Products
$
5.0

 
$
4.2

 
$
3.5

All Other
8.1

 
7.5

 
5.8

Total non-cash compensation expense
$
13.1

 
$
11.7

 
$
9.3
Unrecognized gross compensation cost data
Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of December 31, 2017:
 
Unrecognized Gross Compensation Costs (in millions of dollars)
 
Expected Period (in years) Over Which the Remaining Gross Compensation Costs Will Be Recognized
Non-vested common shares and restricted stock units
$
8.1

 
2.5
TSR-Based Performance Shares
$
4.3

 
1.6
CP-Based Performance Shares
$
5.2

 
1.9
EVA-Based Performance Shares
$
0.5

 
2.2
Summary of activity of non-vested common shares, restricted stock units, and performance shares
A summary of the activity with respect to non-vested common shares, restricted stock units, TSR-Based Performance Shares, CP-Based Performance Shares and EVA-Based Performance Shares for the year ended December 31, 2017 is as follows:
 
Non-Vested
Common Shares
 
Restricted
Stock Units
 
TSR-Based Performance
Shares
 
CP-Based Performance Shares
 
EVA-Based Performance Shares
 
Shares
 
Weighted-Average
Grant-Date Fair
Value per Share
 
Units
 
Weighted-Average
Grant-Date Fair
Value per Unit
 
Shares
 
Weighted-Average
Grant-Date Fair
Value per Share
 
Shares
 
Weighted-Average
Grant-Date Fair
Value per Share
 
Shares
 
Weighted-Average
Grant-Date Fair
Value per Share
Outstanding at December 31, 2016
114,658

 
$
69.51

 
61,800

 
$
74.94

 
394,525

 
$
90.30

 
63,678

 
$
80.46

 
—

 
$
—

Granted 1
11,817

 
86.92

 
92,275

 
76.13

 
65,044

 
97.88

 
65,044

 
79.69

 
32,504

 
79.69

Vested
(46,689
)
 
71.46

 
(9,570
)
 
76.19

 
(94,082
)
 
83.18

 
—

 
—

 
—

 
—

Forfeited 1
(451
)
 
69.83

 
(6,887
)
 
77.44

 
(6,383
)
 
95.85

 
(3,999
)
 
79.93

 
(1,374
)
 
79.69

Canceled 1
—

 
—

 
—

 
—

 
(55,288
)
 
83.18

 
—

 
—

 
—

 
—

Outstanding at December 31, 2017
79,335

 
$
70.96

 
137,618

 
$
75.81

 
303,816

 
$
95.31

 
124,723

 
$
80.08

 
31,130

 
$
79.69


_____________________
1. 
For performance shares, the number of shares granted and forfeited are presented at their maximum payout; and the number of shares canceled includes the number of shares that did not vest due to performance results falling below those required for maximum payout.
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value
The weighted-average grant-date fair value per share for shares granted by type of award was as follows for each period presented:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Non-vested common shares
$
86.92

 
$
86.11

 
$
72.09

Restricted stock units
$
76.13

 
$
75.29

 
$
69.83

TSR-Based Performance Shares
$
97.88

 
$
93.02

 
$
95.68

CP-Based Performance Shares
$
79.69

 
$
80.46

 
$
—

EVA-Based Performance Shares
$
79.69

 
$
—

 
$
—