Stock-based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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| Stock Option Award Activity |
Stock Options – A rollforward of activity for the year ended December 31, 2017 for stock options is as follows: | | | | | | | | | | | | (In millions, except share and per share data) | Options | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | Outstanding at January 1, 2017 | 470,644 |
| | $ | 33.95 |
| | | Granted | 322,981 |
| | 51.31 |
| | | Exercised | (15,721 | ) | | 33.95 |
| | | Forfeited | (19,496 | ) | | 39.83 |
| | | Outstanding at December 31, 2017 | 758,408 |
| | $ | 41.19 |
| | | Vested and expected to vest1 at December 31, 2017 | 758,408 |
| | $ | 41.19 |
| | $ | 8 |
| Exercisable at December 31, 2017 | 141,149 |
| | $ | 33.95 |
| | $ | 3 |
| | | | | | | 1 Expected to vest are unvested options for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition. |
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| Valuation Assumptions |
Valuation Assumptions for Class M Shares—The fair value of the Class M shares is determined using the Black-Scholes option pricing model, with application of a Monte-Carlo simulation to determine the value of the Tranche 2 Class M shares. No Tranche 2 Class M shares were granted during the year ended December 31, 2017. Grant date assumptions used for valuation of Class M share awards for the years ended December 31, 2016 and 2015 were: | | | | | | | | | | | | Years ended December 31, | Assumptions used | 2016 | | 2015 | Athene Class A share value | $32.90 | | $34.23 | Risk-free interest rate | 0.5 | % | – | 1.8% | | 0.9 | % | – | 1.1% | Expected dividend yield | —% | | —% | Expected volatility | 30.0% | | 25.9% | Expected term (in years) | 3.00 | | 2.42 |
Valuation Assumptions – We determine the fair value at grant date for stock options using the Black-Scholes option pricing model. The following represents the assumptions used for the fair value at grant date: | | | | | | | | | Years ended December 31, | Assumptions used | 2017 | | 2016 | Risk-free interest rate | 1.5% | | 1.0% | Expected dividend yield | —% | | —% | Expected volatility | 25.0 | % | – | 28.4% | | 25.0% | Expected term (in years) | 2.34 |
| – | 2.81 | | 2.63 |
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| LTIP RSUs Nonvested Award Activity |
RSUs – The following represents the activity of nonvested LTIP RSUs for the year ended December 31, 2017: | | | | | | | | | RSUs | | Weighted Average Grant Date Fair Value | Nonvested at January 1, 2017 | 328,127 |
| | $ | 33.95 |
| Granted | 245,010 |
| | 51.28 |
| Vested | (40,940 | ) | | 33.95 |
| Forfeited | (25,221 | ) | | 39.88 |
| Nonvested at December 31, 2017 | 506,976 |
| | $ | 42.03 |
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| M Share Award Activity |
Award activity for Class M Shares—A rollforward of award activity for the year ended December 31, 2017 of the Class M shares is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Tranche 1 | | Tranche 2 | | Total | (In millions, except share and per share data) | Class M Shares | | Weighted Average Conversion Price | | Aggregate Intrinsic Value | | Class M Shares | | Weighted Average Conversion Price | | Aggregate Intrinsic Value | | Class M Shares | | Weighted Average Conversion Price | Outstanding at January 1, 2017 | 4,468,585 |
| | $ | 18.27 |
| | | | 6,347,832 |
| | $ | 19.52 |
| | | | 10,816,417 |
| | $ | 19.00 |
| Converted | (447,123 | ) | | 15.14 |
| | | | (249,065 | ) | | 14.69 |
| | | | (696,188 | ) | | 14.98 |
| Forfeited | (88,086 | ) | | 25.66 |
| | | | (25,534 | ) | | 33.13 |
| | | | (113,620 | ) | | 27.34 |
| Repurchased | (51,272 | ) | | 30.80 |
| | | | (246,386 | ) | | 30.90 |
| | | | (297,658 | ) | | 30.88 |
| Outstanding at December 31, 2017 | 3,882,104 |
| | $ | 18.30 |
| | | | 5,826,847 |
| | $ | 19.19 |
| | | | 9,708,951 |
| | $ | 18.83 |
| Vested and expected to vest1 at December 31, 2017 | 3,882,104 |
| | $ | 18.30 |
| | $ | 130 |
| | 5,826,847 |
| | $ | 19.19 |
| | $ | 190 |
| | | | | Convertible at December 31, 2017 | 2,791,394 |
| | $ | 14.33 |
| | $ | 104 |
| | 4,385,045 |
| | $ | 16.07 |
| | $ | 156 |
| | | | | | | | | | | | | | | | | | | | | 1 Expected to vest are unvested shares for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition. |
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| Nonvested Share Activity |
The following represents the activity of nonvested Class M shares for the year ended December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | Tranche 1 | | Tranche 2 | | Total | | Class M Shares | | Weighted Average Grant Date Fair Value | | Class M Shares | | Weighted Average Grant Date Fair Value | | Class M Shares | | Weighted Average Grant Date Fair Value | Nonvested at January 1, 2017 | 1,837,043 |
| | $ | 8.67 |
| | 3,040,135 |
| | $ | 11.36 |
| | 4,877,178 |
| | $ | 10.34 |
| Vested | (658,247 | ) | | 10.31 |
| | (1,572,799 | ) | | 9.15 |
| | (2,231,046 | ) | | 9.49 |
| Forfeited | (88,086 | ) | | 5.12 |
| | (25,534 | ) | | 8.89 |
| | (113,620 | ) | | 5.97 |
| Nonvested at December 31, 2017 | 1,090,710 |
| | $ | 7.97 |
| | 1,441,802 |
| | $ | 13.81 |
| | 2,532,512 |
| | $ | 11.29 |
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| Stock-based Compensation Expense |
Components of stock compensation expense recorded on the consolidated statements of income are as follows: | | | | | | | | | | | | | | Years ended December 31, | (In millions) | 2017 | | 2016 | | 2015 | Class M – Tranche 1 | $ | 8 |
| | $ | 11 |
| | $ | 12 |
| Class M – Tranche 2 | 21 |
| | 69 |
| | 50 |
| LTIP and other equity awards | 16 |
| | 4 |
| | 5 |
| Stock-based compensation expense | $ | 45 |
| | $ | 84 |
| | $ | 67 |
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