Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

A summary of the status of the Company’s nonvested restricted stock awards as of September 30, 2018, and changes during the nine months ended September 30, 2018, is presented below:



	Shares		Weighted-Average Grant Date Fair Value
Nonvested at January 1, 2018	642,359		$	13.23
Granted	693,064		$	4.55
Vested	(413,032	)	$	9.64
Forfeited	(8,852	)	$	9.36
Nonvested at September 30, 2018	913,539		$	8.30

A summary of the status of the Company’s PSU activity as of September 30, 2018, and changes during the nine months ended September 30, 2018, is presented below:



	PSUs		Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2018	560,371		$	5.91
2018 PSUs granted	741,977		$	2.63
Forfeited	(138,899	)	$	4.22
Outstanding at September 30, 2018 ⁽¹⁾	1,163,449		$	4.55


(1)	None of the PSUs outstanding at September 30, 2018 were vested.

Schedule of Assumptions Used in the Monte Carlo Simulation Pricing Model

The following table summarizes the assumptions used in the Monte Carlo simulation pricing model related to the PSUs:



	2018 PSUs			2017 PSUs			2016 PSUs
Grant date	February 12, 2018			February 7, 2017			February 10, 2016
Fair value per share on valuation date ⁽¹⁾	$	4.76		$	6.86		$	4.98
Risk-free interest rate ⁽²⁾	2.36		%	1.53		%	0.92		%
Expected share price volatility⁽³⁾	42.02		%	32.85		%	30.95		%

(1)

The value of the PSU awards is estimated on the date of grant using a Monte Carlo simulation model. The valuation consists of computing the fair value using CBL's simulated stock price as well as TSR over a three-year performance period. The award is modeled as a contingent claim in that the expected return on the underlying shares is risk-free and the rate of discounting the payoff of the award is also risk-free. The weighted-average fair value per share related to the 2018 PSUs classified as equity consists of 240,164 shares at a fair value of $3.13 (which relate to relative TSR) and 120,064 shares at a fair value of $1.63 per share (which relate to absolute TSR). The weighted-average fair value per share related to the 2017 PSUs consists of 115,082 shares at a fair value of $5.62 per share and 162,294 shares at a fair value of $7.74 per share.


(2)	The risk-free interest rate was based on the yield curve on zero-coupon U.S. Treasury securities in effect as of the valuation date, which is the respective grant date listed above.


(3)	The computation of expected volatility was based on a blend of the historical volatility of CBL's shares of common stock based on annualized daily total continuous returns over a three-year period and implied volatility data based on the trailing month average of daily implied volatilities implied by stock call option contracts that were both closest to the terms shown and closest to the money.