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Stock-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
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.
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
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
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.
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
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