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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation Expense

Stock-based compensation expense was as follows:

 

(In millions)

 

2021

 

 

 

2020

 

 

 

2019

 

Restricted stock units

 

$

24.0

 

 

 

$

21.5

 

 

 

$

19.4

 

Stock option awards

 

 

6.1

 

 

 

 

5.3

 

 

 

 

7.0

 

Performance awards

 

 

23.0

 

 

 

 

22.6

 

 

 

 

4.2

 

Director awards

 

 

1.3

 

 

 

 

0.9

 

 

 

 

1.2

 

Total pre-tax expense

 

 

54.4

 

 

 

 

50.3

 

 

 

 

31.8

 

Tax benefit

 

 

9.9

 

 

 

 

8.7

 

 

 

 

6.0

 

Total after tax expense

 

$

44.5

 

 

 

$

41.6

 

 

 

$

25.8

 

RSU Activity

A summary of activity with respect to RSUs outstanding under the Plans for the year ended December 31, 2021 was as follows:

 

 

 

Number of
Restricted
Stock Units

 

 

Weighted-Average
Grant-Date
Fair Value

 

Non-vested at December 31, 2020

 

 

708,338

 

 

$

61.48

 

Granted

 

 

263,536

 

 

$

90.02

 

Vested

 

 

(359,290

)

 

$

59.98

 

Forfeited

 

 

(39,982

)

 

$

74.20

 

Non-vested at December 31, 2021

 

 

572,602

 

 

$

74.92

 

Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options

The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table:

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

Current expected dividend yield

 

 

 

1.2

 %

 

 

 

1.4

%

 

 

 

1.5

%

Expected volatility

 

 

 

35.1

%

 

 

 

25.9

%

 

 

 

27.0

%

Risk-free interest rate

 

 

 

0.6

%

 

 

 

1.2

%

 

 

 

2.5

%

Expected term

 

 

5.2 years

 

 

 

5.3 years

 

 

 

5.0 years

 

Stock Option Activity

A summary of Fortune Brands stock option activity related to Fortune Brands and former employees of Fortune Brands, Inc., the Company from which we spun off from in 2011, for the year ended December 31, 2021 was as follows:

 

 

 

Options

 

 

Weighted-
Average
Exercise
Price

 

Outstanding at December 31, 2020

 

 

2,539,029

 

 

$

55.54

 

Granted

 

 

277,038

 

 

$

86.94

 

Exercised

 

 

(848,895

)

 

$

49.27

 

Expired/forfeited

 

 

(20,378

)

 

$

72.54

 

Outstanding at December 31, 2021

 

 

1,946,794

 

 

$

62.56

 

Options Outstanding and Exercisable

Options outstanding and exercisable at December 31, 2021 were as follows:

 

 

 

Options Outstanding (a)

 

 

Options Exercisable (b)

 

Range Of
Exercise Prices

 

Options
Outstanding

 

 

Weighted-
Average
Remaining
Contractual Life

 

 

Weighted-
Average
Exercise
Price

 

 

Options
Exercisable

 

 

Weighted-
Average
Exercise
Price

 

$13.00 to $20.00

 

 

4,556

 

 

 

0.15

 

 

$

19.46

 

 

 

4,556

 

 

$

19.46

 

$20.01 to $87.54

 

 

1,942,238

 

 

 

6.69

 

 

$

62.67

 

 

 

1,217,180

 

 

$

56.22

 

 

 

 

1,946,794

 

 

 

6.68

 

 

$

62.56

 

 

 

1,221,736

 

 

$

56.07

 

 

(a)
At December 31, 2021, the aggregate intrinsic value of options outstanding was $86.3 million.
(b)
At December 31, 2021 the weighted-average remaining contractual life of options exercisable was 5.6 years and the aggregate intrinsic value of options exercisable was $62.1 million.
Summarizes Information of Performance Share Awards

The following table summarizes information about performance share awards as of December 31, 2021, as well as activity during the year then ended. The number of performance share awards granted are shown below at the target award amounts:

 

 

 

Number of
Performance Share
Awards

 

 

Weighted-Average
Grant-Date
Fair Value

 

Non-vested at December 31, 2020

 

 

576,459

 

 

$

57.54

 

Granted

 

 

194,644

 

 

$

90.57

 

Vested

 

 

(30,295

)

 

$

63.42

 

Forfeited

 

 

(102,072

)

 

$

65.06

 

Non-vested at December 31, 2021

 

 

638,736

 

 

$

66.12