SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2016

A summary of the status of the Company’s nonvested restricted stock awards as of December 31, 2016, and changes during the year ended December 31, 2016, is presented below:



	Shares		Weighted- Average Grant-Date Fair Value
Nonvested at January 1, 2016	533,404		$	19.19
Granted	319,660		$	10.02
Vested	(238,822	)	$	16.57
Forfeited	(12,080	)	$	16.76
Nonvested at December 31, 2016	602,162		$	15.41

Summary of Assumptions used in the Monte Carlo Simulation Pricing Models

The following table summarizes the assumptions used in the Monte Carlo simulation pricing model related to the 2016 PSUs, which had a grant date of February 10, 2016:



	2016 PSUs
Fair value per share on valuation date ⁽¹⁾	$	4.98
Risk-free interest rate ⁽²⁾	0.92		%
Expected share price volatility⁽³⁾	30.95		%

(1)

The value of the PSU awards are estimated on the date of grant using a Monte Carlo Simulation model. The valuation consisted of computing the fair value using CBL's simulated stock price as well as TSR over a three-year performance period. The award is modeled as a contingent claim in that the expected return on the underlying shares is risk-free and the rate of discounting the payoff of the award is also risk-free.


(2)	The risk-free interest rate was based on the yield curve on zero-coupon U.S. Treasury securities in effect as of valuation date of February 10, 2016 for the 2016 PSUs.


(3)	The computation of expected volatility was based on a blend of the historical volatility of CBL's shares of common stock based on annualized daily total continuous returns over a three-year period and implied volatility data based on the trailing month average of daily implied volatilities implied by stock call option contracts that were both closest to the terms shown and closest to the money.