Share-Based Compensation

9 Months Ended

Sep. 30, 2018

Share Based Compensation [Abstract]

Share-Based Compensation

8. Share-Based Compensation

Share-based compensation expense totaled $2.2 million and $2.1 million for the three months ended September 30, 2018 and 2017, respectively, and $6.4 million for both the nine months ended September 30, 2018 and 2017.

In March 2018, we awarded our annual share-based compensation grants, which consisted of 683,076 restricted stock units with a grant date fair value of $6.10 per unit and 683,076 performance share units also with a grant date fair value of $6.10 per unit. The restricted stock units are subject to a three year graded vesting period and the performance share units are subject to a 34 month cliff vesting period. Dividends are not paid on restricted stock units.

In addition, during the nine months ended September 30, 2018, we granted 813,361 cash-settled stock units (“phantom stock units”). Our share price on the date of grant was $7.31. The phantom stock units vest and are payable in three equal installments over a period of three years after the grant date. Phantom stock units are not shares of our common stock and therefore the recipients of these awards do not receive ownership interest in the Company or stockholder voting rights. Phantom stock unit awards are subject to forfeiture upon termination of employment prior to vesting, subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee, termination of the grantee’s employment under certain circumstances or a change in control of the Company. All phantom stock unit awards are classified as liability awards due to their expected settlement in cash, and are included in Accrued liabilities and other in the Condensed Consolidated Balance Sheets. Compensation expense for these awards is measured based upon the fair value of the awards at the end of each reporting period. Dividends are not paid on phantom stock units.