XML 61 R46.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]
Common Stock Plan
We have a stock-based compensation plan under which stock options, SSARs, restricted stock (including units) and performance shares awards are granted. At December 31, 2018, 3.0 million shares were available under the current plan for these awards.
 
Year ended December 31,
Dollar amounts in millions
2018
 
2017
 
2016
Total stock-based compensation expense (costs of sales, selling, general and administrative and other operating credits and charges, net)
$
8.6

 
$
9.7

 
$
13.0

Income tax benefit related to stock-based compensation
$
3.1

 
$
0.8

 
$
3.4

Impact on cash flow due to taxes paid related to net share settlement of equity awards
$
9.3

 
$
5.9

 
$
9.2
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The following table sets out the weighted average assumptions used to estimate the fair value of the SSARs granted using the Black-Scholes option-pricing model:
 
2017
 
2016
Expected stock price volatility
41
%
 
45
%
The fair values of stock-based payments were valued using the Black-Scholes valuation method with a volatility factor based on our historical stock prices.
 
 
 
Expected dividend yield
—
%
 
—
%
The Black-Scholes valuation model calls for a single expected dividend yield as an input. This is determined based upon current annual dividend as of the date of grant compared to the grant price.
 
 
 
Risk-free interest rate
2.1
%
 
1.4
%
We base the risk-free interest rate used in the Black-Scholes valuation method on U.S. Treasury issues with an equivalent term. Where the expected term of our stock-based awards do not correspond with the terms for which interest rates are quoted, we perform a straight-line interpolation to determine the rate from the available maturities.
 
 
 
Expected life of options (in years)
6 years

 
6 years

Expected life represents the period that LP’s stock-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its stock-based awards.
 
 
 
Weighted average fair value of options and SSARs granted
$
8.02

 
$
6.99
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]
The following table summarizes stock awards as of December 31, 2018 as well as activity during the last year. 
 
Stock Options / SSARS
 
Restricted stock
 
Restricted units
 
Number of Awards
 
Weighted
Average
Exercise Price
 
Number of Awards
 
Weighted Average Grant Date Fair Value
 
Number of Awards
 
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2017
2,404,808

 
$
14.76

 
311,215

 
$
17.33

 
851,244

 
$
18.93

Granted
—

 
—

 
—

 
—

 
491,114

 
27.74

Exercised
(1,201,644
)
 
13.91

 
—

 
—

 
—

 
—

Vested
—

 
—

 
(64,747
)
 
17.04

 
(217,000
)
 
17.95

Forfeited
(61,478
)
 
17.51

 
(6,294
)
 
16.80

 
(168,744
)
 
21.59

Outstanding at December 31, 2018
1,141,686

 
$
15.50

 
240,174

 
$
17.43

 
956,614

 
$
23.17

Vested and expected to vest at December 31, 2018(1)
1,084,602

 
$
15.50

 
228,165

 
$
17.43

 
908,783

 
$
23.17

Exercisable at December 31, 2018
870,431

 
$
14.83

 
—

 
—

 
—

 
$
—

Unrecognized compensation costs (in millions)
$
0.5

 
 
 
$
0.7

 
 
 
$
9.7

 
 
to be recognized over weighted average period of years
0.8

 
 
 
0.6

 
 
 
1.3

 
 
 _______________
(1) 
Expected to vest based upon historical forfeiture rate