Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

The Company granted the following performance share units (“PSUs”) for shares of the Company's common stock during the six months ended June 30, 2019, for which the service period will end on December 31, 2021 and will vest during the first quarter of 2022:

	Shares	Grant Date Fair Value per Share
PSUs(1)(2)	227,378	$	10.79

(1) The PSU awards are split 50/50 between the Company's three year cumulative Adjusted EBITDA performance measure and the Company's three-year average pre-tax return on capital performance measure for its coke and logistics businesses and unallocated corporate expenses.

(2)

The number of PSUs ultimately awarded will be determined by the above performance measures versus targets and the Company's three-year total shareholder return (“TSR”) as compared to the TSR of the companies making up the Nasdaq Iron & Steel Index (“TSR Modifier”). The TSR Modifier can impact the payout between 75 percent and 125 percent of the Company's final performance measure results.

The Company granted the following stock options during the six months ended June 30, 2019 with an exercise price equal to the closing price of our common stock on the date of grant.

		Weighted Average Per Share
	Shares	Exercise Price		Grant Date Fair Value
Traditional stock options	267,897	$	9.87	$	4.09

Schedule of Weighted-Average Assumptions

The weighted-average fair value of employee stock options granted during the six months ended June 30, 2019 was based on using the following weighted-average assumptions:

	Six Months Ended June 30, 2019
Risk-free interest rate	2	%
Expected term	6 years
Volatility	53	%
Dividend yield	2	%

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

Below is a summary of the compensation expense, unrecognized compensation costs, and the period for which the unrecognized compensation cost is expected to be recognized over:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018		June 30, 2019
	Compensation Expense(1)								Unrecognized Compensation Cost		Recognition Period
	(Dollars in millions)										(Years)
Equity Awards:
Stock Options	$	0.3	$	0.1	$	0.5	$	0.3	$	1.1	1.9
RSUs	0.3		0.1		0.4		0.2		$	1.2	1.3
PSUs	0.5		0.5		1.0		0.9		$	4.5	2.0
Total equity awards	$	1.1	$	0.7	$	1.9	$	1.4
Liability Awards:
Cash RSUs	$	0.3	$	0.5	$	0.7	$	0.6	$	1.4	1.7
Cash incentive award	0.3		0.3		0.4		0.5		$	1.2	1.9
Total liability awards	$	0.6	$	0.8	$	1.1	$	1.1

(1)

Compensation expense recognized by the Company is included in selling, general and administrative expenses on the Consolidated Statements of Income.

Schedule of Unrecognized Compensation Cost, Nonvested Awards

Below is a summary of the compensation expense, unrecognized compensation costs, and the period for which the unrecognized compensation cost is expected to be recognized over:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018		June 30, 2019
	Compensation Expense(1)								Unrecognized Compensation Cost		Recognition Period
	(Dollars in millions)										(Years)
Equity Awards:
Stock Options	$	0.3	$	0.1	$	0.5	$	0.3	$	1.1	1.9
RSUs	0.3		0.1		0.4		0.2		$	1.2	1.3
PSUs	0.5		0.5		1.0		0.9		$	4.5	2.0
Total equity awards	$	1.1	$	0.7	$	1.9	$	1.4
Liability Awards:
Cash RSUs	$	0.3	$	0.5	$	0.7	$	0.6	$	1.4	1.7
Cash incentive award	0.3		0.3		0.4		0.5		$	1.2	1.9
Total liability awards	$	0.6	$	0.8	$	1.1	$	1.1

(1)

Compensation expense recognized by the Company is included in selling, general and administrative expenses on the Consolidated Statements of Income.