In May 2019, our stockholders approved the 2019 Omnibus Supplemental Incentive Plan (“OSIP”), which authorizes granting an aggregate maximum of 14.4 million shares under the OSIP through May 31, 2029. The OSIP permits and the prior Stock Incentive Plan permitted the granting of nonqualified stock option, restricted stock, performance shares and restricted stock unit awards to our directors, officers and other employees. Under the OSIP, any dividends on unvested awards are subject to the same restrictions as the underlying award. Approximately 14 million shares were available for future grant as of December 31, 2019.



Share-based Compensation Expense	2019		2018		2017
Stock options	$	2.5	$	2.5	$	2.1
Restricted stock	2.3		3.1		2.9
Restricted stock units issued to Directors	1.1		1.2		1.2
Performance shares	2.3		2.0		1.5
Equity-based long-term performance plan	1.0		0.4		—
Share-based compensation expense	$	9.2	$	9.2	$	7.7

Stock options have a maximum term of ten years and holders may not exercise them earlier than six months after the grant date or another term the award agreement may specify. Stock options granted to officers and other employees vest and become exercisable in three equal installments on the first, second and third anniversaries of the grant date. The exercise price of each option must equal or exceed the market price of our common stock on the grant date. We have not and, pursuant to the terms of our plans may not, reprice stock options to lower the exercise price.

We use the Black-Scholes option valuation model to value the nonqualified stock options. We use historical data of stock option exercise behaviors to estimate the expected life that granted options will be outstanding. The risk-free interest rate is based on the

Daily Treasury Yield Curve published by the U.S. Treasury on the grant date. The expected volatility is determined by using a blend of historical and implied volatility. We do not expect to pay dividends over the term of the options based on our current dividend policy. We also estimate that option holders will forfeit 5% of the options.



	2019	2018	2017
Expected volatility	63.6% – 65.3%	58.8% – 61.6%	61.5% – 64.0%
Weighted-average volatility	64.5%	59.5%	62.5%
Expected term (in years)	3.5 – 6.6	3.4 – 6.6	3.3 – 6.5
Risk-free interest rate	2.6% – 2.7%	2.3% – 2.6%	1.6% – 2.2%
Weighted-average grant-date fair value per share of granted options	$1.52	$3.51	$5.33



Stock Options	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2018	3,403,862		$	6.90
Granted	1,199,415		2.66
Exercised	(43,167	)	1.74
Forfeited and expired	(428,701	)	11.38
Outstanding at December 31, 2019	4,131,409		5.26		6.9	$	1.6

Exercisable at December 31, 2019	2,215,816		6.01		5.3	0.8

Unvested at December 31, 2019	1,915,593		4.39		8.4	0.7

Unvested at December 31, 2019 expected to vest	1,819,813		4.39		8.4	0.7

The total intrinsic value of stock option awards that holders exercised during the years ended December 31, 2019, 2018, and 2017 was $0.1, $0.3 and $0.2. Each exercised option’s intrinsic value is the quoted average of the reported high and low sales price on the exercise date. As of December 31, 2019, total unrecognized compensation costs for non-vested stock options were $0.8, which we expect to recognize over a weighted-average period of 1.6 years.

Restricted stock awards granted to officers and other employees ordinarily vest ratably on the first, second and third anniversaries of the grant. Non-vested restricted stock awards activity for the year ended December 31, 2019, is presented below:



Restricted Stock Awards	Restricted Shares		Weighted- Average Grant Date Fair Value
Outstanding at December 31, 2018	506,703		$	6.45
Granted	772,054		2.65
Vested/restrictions lapsed	(745,001	)	3.98
Canceled	(93,651	)	4.32
Outstanding at December 31, 2019	440,105		4.42

The weighted-average grant date fair value of restricted stock awards granted during the years ended December 31, 2019, 2018 and 2017, was $2.65, $6.56 and $9.78 per share. The total intrinsic value of restricted stock awards that vested (i.e., restrictions lapsed) during the years ended December 31, 2019, 2018 and 2017, was $2.0, $3.2 and $4.1. As of December 31, 2019, total unrecognized

Restricted stock units (“RSUs”) represent equity-based compensation granted to Directors. RSU grants vest immediately, but we do not settle them (i.e., issue the underlying shares of stock) until one year after the grant date, unless a Director elects to defer the settlement to six months after his or her Board service is terminated. They may elect to take settlement in a single distribution or in annual installments up to fifteen years.

Performance shares are granted to executive officers and other employees. They earn the awards by meeting performance measures over a three-year period. Though a target number of performance shares are awarded on the grant date, for 2019 and 2018 grants the total number of performance shares that will actually be issued to the participant, if any, at the expiration of the performance period will be based on our total share return compared to the VanEck Vectors Steel ETF. For 2017, the total number of performance shares that will be issued to the participant, if any, at the expiration of the performance period for those grants will be based on two equally-rated metrics: (i) our share performance compared to a prescribed compounded annual growth rate and (ii) our total share return compared to the VanEck Vectors Steel ETF.



	2019			2018			2017
Company expected volatility	62.3		%	67.3		%	68.0		%
VanEck Vectors Steel ETF expected volatility	45.3		%	52.2		%	48.9		%
Risk-free interest rate	2.6		%	2.2		%	1.5		%
Weighted-average grant-date fair value per performance share granted	$	3.09		$	8.05		$	10.78



Performance Share Awards	Performance Shares		Weighted- Average Grant Date Fair Value
Outstanding at December 31, 2018	614,800		$	9.19
Granted	595,733		3.09
Earned	—		—
Expired or forfeited	(338,058	)	9.38
Outstanding at December 31, 2019	872,475		4.95

As of December 31, 2019, total unrecognized compensation costs for non-vested performance share awards were $2.1, which we expect to recognize over a weighted-average period of 1.6 years.

During 2018, in order to further align our management and stockholder interests, the Board of Directors changed the structure of long-term incentive compensation for executive officers. For performance periods beginning in 2019, 50% of the long-term incentive plan compensation earned by executive officers will now be denominated in stock instead of the 30% denominated in stock for the performance period that began in 2018. In addition, beginning in 2019, 30% of the compensation earned by other non-executive officer participants under the long-term incentive plan will now be paid in stock. The remaining portion of the long-term incentive plan for all participants will be settled in cash. As a result, the equity-based portion of the long-term incentive plan is treated as share-based compensation with a performance condition.



Long-Term Performance Plan Share Awards	Long-Term Performance Plan Shares		Weighted- Average Grant Date Fair Value
Outstanding at December 31, 2018	250,400		$	5.04
Granted	678,714		2.66
Expired or forfeited	(70,900	)	3.39
Outstanding at December 31, 2019	858,214		3.24

As of December 31, 2019, total unrecognized compensation costs for non-vested long-term performance share awards were $1.6, which we expect to recognize over a weighted-average period of 1.8 years.