Stock-Based Compensation and Other Incentive Plans

Under the Company’s 2016 Omnibus Incentive Plan (the “Incentive Plan”), 3.0 million shares of the Company’s common stock were reserved for awards to officers and other selected key management employees of the Company. The Incentive Plan provides the Board of Directors with the flexibility to grant stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock or units, phantom stock awards and rights to acquire stock through purchase under a stock purchase program (“Awards”). Awards the Board of Directors elects to pay out in cash do not impact the shares authorized in the Incentive Plan. Shares available for award under the plan were 2.4 million at December 31, 2017.

Restricted Stock Unit Awards

The Company may issue restricted stock and restricted stock units, which require no payment from the employee. Restricted stock cliff-vests at various dates and restricted stock units either vest ratably over or vest at the end of the award’s stated vesting period. Compensation expense is based on the fair value on the grant date and is recorded ratably over the vesting period utilizing the straight-line recognition method. The employee receives cash compensation equal to the amount of dividends that would have been paid on the underlying shares.

During 2017, the Company granted both time based awards and performance based awards. The time based awards vest over either a one or three year period and the performance based awards vest over a three year period. The time based awards’ grant date fair value was determined based on the stock price at the date of grant. The performance awards grant date fair value was determined using a Black-Scholes Monte Carlo simulation. A volatility of 50% and 60% were selected for each of the performance-based awards based on comparator companies, and the three-year risk free rate was derived from yields on U.S. Government bonds. Information regarding the restricted stock units activity and weighted average grant-date fair value follows:



	Time Based Awards				Performance Based Awards
	Restricted Stock Units		Weighted Average Grant-Date Fair Value		Restricted Stock Units	Weighted Average Grant-Date Fair Value
(Shares in thousands)
Outstanding at January 1, 2017	159		$	78.60	225	$	67.34
Granted	92		81.91		86	101.38
Forfeited/Canceled	(2	)	78.60		—	—
Vested	(9	)	78.60		—	—
Unvested outstanding at December 31, 2017	240		$	79.87	311	$	76.75

The Company recognized expense related to restricted stock units of $10.4 million for the year ended December 31, 2017 and $1.0 million for the period October 2, 2016 through December 31, 2016. As of December 31, 2017, there was $32.4 million of unrecognized share-based compensation expense which is expected to be recognized over a weighted-average period of approximately three years.

Long-Term Incentive Compensation

The Company has a long-term incentive program that allows for the award of performance units. The total number of units earned by a participant is based on financial and operational performance measures, and may be paid out in cash or in shares of the Company’s common stock. The Company recognizes compensation expense over the three year term of the grant. The liabilities are remeasured quarterly. The Company recognized expense of $0.7 million for the year ended December 31, 2017, $1.6 million for the period October 2 through December 31, 2016, $7.2 million for the period January 1 through October 1, 2016 and $7.9 million for the year ended December 31, 2015, respectively. The expense is included primarily in “Selling, general and administrative expenses” in the accompanying consolidated statements of operations.

Amounts accrued and unpaid for all grants under the plan totaled $8.7 million and $13.9 million as of December 31, 2017 and 2016, respectively.