Long-Term Incentive Employee Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Long-Term Incentive Employee Compensation Costs

LTIP costs are primarily recorded within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows:

	2016		2015		2014
Share-based compensation expense, equity-based awards	$	12.6	$	15.7	$	14.0
Share-based compensation expense, liability-based awards	1.8		1.1		3.1
Total share-based compensation expense in operating income	$	14.4	$	16.8	$	17.1

Status of Stock Option and Restricted Stock Shares

A summary of the status of our NQOs as of December 31, 2016, 2015 and 2014 and changes during the years then ended is presented below.

	2016				2015				2014
Stock Options	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding – January 1	1.7		$	27.10	1.9		$	24.20	2.7		$	20.46
Granted	0.4		33.01		0.2		41.52		0.2		43.52
Exercised	(0.6	)	20.88		(0.3	)	19.87		(0.8	)	17.67
Cancelled or expired	(0.1	)	39.03		(0.1	)	35.95		(0.2	)	24.46
Outstanding – December 31	1.4		$	30.57	1.7		$	27.10	1.9		$	24.20
Options exercisable – December 31	0.8		$	24.41	1.1		$	21.75	1.1		$	20.26

Share-Based Compensation Summary of Stock Options

The following table summarizes information about ITT’s stock options at December 31, 2016:

	Options Outstanding				Options Exercisable
Exercise Prices	Number	Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value		Number	Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
$19.97	0.1	4.2	$	0.6	0.1	4.2	$	0.6
$20.28	0.2	5.9	3.7		0.2	5.9	3.7
$21.53	0.1	5.2	0.7		0.1	5.2	0.7
$22.80	0.2	6.2	3.6		0.2	6.2	3.6
$26.76	0.2	7.2	2.5		0.2	7.2	2.5
$33.01	0.3	10.1	2.0		—	—	—
$41.52	0.2	9.2	—		—	—	—
$43.52	0.1	8.2	—		—	—	—
	1.4	7.8	$	13.1	0.8	6.4	$	11.1

Weighted Average Assumptions

The following are weighted-average assumptions for 2016, 2015 and 2014:

	2016			2015			2014
Dividend yield	1.5		%	1.1		%	1.0		%
Expected volatility	32.2		%	29.4		%	29.6		%
Expected life (in years)	6.0			5.8			5.8
Risk-free rates	1.5		%	1.7		%	1.8		%
Weighted-average grant date fair value	$	9.16		$	11.23		$	11.93

Rollforward of Outstanding Restricted Stock

The table below provides a rollforward of outstanding RSUs and PSUs for each of the years ended December 31, 2016, 2015 and 2014.

	2016				2015				2014
Restricted Stock and Performance Units	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Outstanding – January 1	1.3		$	36.56	1.1		$	31.70	1.3		$	24.17
Granted	0.5		33.28		0.5		41.34		0.4		43.88
Performance adjustment(a)	(0.1	)	45.47		0.1		29.59		—		—
Lapsed	(0.5	)	29.86		(0.3	)	24.09		(0.5	)	21.62
Canceled	(0.1	)	39.20		(0.1	)	35.89		(0.1	)	27.33
Outstanding – December 31	1.1		$	38.24	1.3		$	36.56	1.1		$	31.70
Vested pending issuance	—		$	—	0.3		$	29.59	—		$	—

(a) Represents the adjustment to the number of shares to be issued above or below target for performance results achieved relative to PSUs granted in 2014 that vested on December 31, 2016 and PSUs granted in 2013 that vested on December 31, 2015.

Number of Outstanding Equity Settled RSUs, Cash Settled RSUs and RSAs

The table below provides the number of the outstanding equity settled RSUs, cash settled RSUs, and PSUs as of December 31, 2016, 2015 and 2014.

	2016	2015	2014
Equity settled RSUs	0.7	0.7	0.7
Cash settled RSUs	0.1	0.1	0.1
PSU awards	0.3	0.5	0.3