XML 46 R33.htm IDEA: XBRL DOCUMENT v3.10.0.1
Employee Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Compensation, Restricted Stock Units Award Activity A summary of the activity with respect to RSAs and RSUs for the year ended December 31, 2018 is as follows:
 
Shares
 
Weighted-Average
Grant-Date Fair
Value per Share
Outstanding at December 31, 2017
216,953

 
$
74.04

Granted
74,138

 
96.40

Vested
(64,061
)
 
73.25

Forfeited
(7,517
)
 
77.17

Outstanding at December 31, 2018
219,513

 
$
80.99
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions Inputs and assumptions used in the Monte Carlo simulations to calculate the fair value at grant date of our TSR-Based Performance Shares were as follows:
 
Year Ended December 31,
 
2018
 
2017
 
2016
Grant date fair value
$
127.41

 
$
97.88

 
$
93.02

Grant date stock price
$
101.66

 
$
79.69

 
$
80.46

Expected volatility of Kaiser Aluminum1
24.86
%
 
22.74
%
 
17.81
%
Expected volatility of peer companies1
44.74
%
 
44.19
%
 
41.22
%
Risk-free interest rate
2.37
%
 
1.54
%
 
1.01
%
Dividend yield
2.16
%
 
2.50
%
 
2.24
%
_____________________
1. 
Expected volatility based on 2.8 years of daily closing share prices from the valuation date to the end of the performance period.
Summary of activity of non-vested common shares, restricted stock units, and performance shares A summary of the activity with respect to performance shares for the year ended December 31, 2018 is as follows:
 
Shares
 
Weighted-Average
Grant-Date Fair
Value per Share
Outstanding at December 31, 2017
459,669

 
$
90.12

Granted 1
124,833

 
109.38

Vested
(125,674
)
 
95.68

Forfeited 1
(10,261
)
 
94.85

Canceled 1
(22,207
)
 
95.68

Outstanding at December 31, 2018
426,360

 
$
93.72

_____________________
1. 
The number of shares granted and forfeited are presented at their maximum payout; and the number of shares canceled includes the number of shares that did not vest due to performance results falling below those required for maximum payout.
Non-cash compensation expense Non-Cash Compensation Expense. Non-cash compensation expense relating to all awards is included in SG&A and R&D. Non-cash compensation expense by type of award under LTI Programs was as follows for each period presented (in millions of dollars):
 
Year Ended December 31,
 
2018
 
2017
 
2016
RSAs and RSUs
$
5.8

 
$
5.4

 
$
4.7

Performance shares
4.3

 
7.7

 
7.0

Total non-cash compensation expense
$
10.1

 
$
13.1

 
$
11.7
Unrecognized gross compensation cost data Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of December 31, 2018:
 
Unrecognized Gross Compensation Costs (in millions of dollars)
 
Expected Period (in years) Over Which the Remaining Gross Compensation Costs Will Be Recognized
RSAs and RSUs
$
8.7

 
2.5
Performance shares
$
6.0

 
1.6
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value The weighted-average grant-date fair value per share for shares granted by type of award was as follows for each period presented:
 
Year Ended December 31,
 
2018
 
2017
 
2016
RSAs and RSUs
$
96.40

 
$
77.35

 
$
76.82

Performance shares
$
109.38

 
$
86.97

 
$
88.00