Share-Based Compensation Arrangements

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation Arrangements

Share-Based Compensation Arrangements

In the first quarter of 2014, our Board of Directors adopted the 2014 Omnibus Incentive Plan ("2014 Plan"), which was approved by our shareholders at our Annual Shareholders Meeting. Under the 2014 Plan, we may award share-based compensation that does not have to be settled in cash to certain key employees, directors and third-party service providers.

In the past, we granted Stock Appreciation Rights ("SARs") and phantom shares to certain key employees under our Long-Term Incentive Cash Award Plan. As both the SARs and the phantom shares under this plan are settled in cash rather than by issuing equity instruments, we record an expense with a corresponding liability on our Consolidated Balance Sheets. The expense is based on the fair value of the awards on the last day of the reporting period and represents an amortization of that fair value over the vesting period of the awards. Our liability with regard to our outstanding, cash settled, share-based awards is re-measured in each quarterly reporting period.

Compensation expense (income) related to outstanding share-based compensation awards under the Long-Term Incentive Cash Award Plan for the three months ended March 31,2015 and 2014 was immaterial and $(0.3) million, respectively. The balance of the fair value that has not yet been recorded as expense is considered an unrecognized liability. The total unrecognized compensation liability with respect to awards under the Long-Term Incentive Cash Award Plan was immaterial at both March 31, 2015 and December 31, 2014. Total cash paid under this plan for the three months ended March 31,2015 and 2014 was $0.2 million and $0.8 million, respectively.

Prior to 2014, we also granted deferred stock units ("DSUs") to our non-employee directors under our Outside Directors' Deferred Stock Unit Plan. These awards were fully vested when made. Since the DSUs are settled in cash rather than by issuing equity instruments, we record an expense with a corresponding liability on our Consolidated Balance Sheets. Total expense (income) related to the DSUs for the three months ended March 31, 2015 and 2014 was immaterial and $(0.1) million, respectively. We have recorded a liability of $0.2 million at both March 31, 2015 and December 31, 2014, related to the outstanding DSUs. Total cash paid for DSUs for the three months ended March 31, 2015 and 2014 was zero and $0.7 million, respectively.

In the second quarter of 2014, we granted restricted stock units ("RSUs") to our non-employee directors and our Chief Executive Officer under our 2014 Omnibus Incentive Plan. These RSUs vest immediately before our 2015 Annual Meeting of Shareholders if the non-employee director or Chief Executive Officer, as applicable, is serving on our Board on that date. The RSUs will be settled 75% in our Common Shares and 25% in cash. For the RSUs settled in our Common Shares, we record an expense and corresponding change in "Paid in Capital" on our Consolidated Balance Sheets, based on the fair value of the RSUs at grant date and recognized over the vesting period. For the RSUs settled in cash, we record an expense with a corresponding liability on our Consolidated Balance Sheets recognized over the vesting period. This liability will be remeasured in each quarterly reporting period, based on the closing price of our Common Shares on the last day of each period. For the three months ended March 31, 2015, the compensation expense related to RSUs was $0.1 million.

During fourth quarter 2014, we granted non-qualified stock options under our 2014 Omnibus Incentive Plan to certain executive officers and key employees. The stock options will be settled in our Common Shares and will vest in three equal annual installments beginning December 2015. For the stock options settled in our Common Shares, we record an expense and corresponding change in "Paid in Capital" on our Consolidated Balance Sheets. The value of each stock option is based on a Black-Scholes valuation model as of December 31, 2014. Total expense related to the non-qualified stock options for the three months ended March 31, 2015 was immaterial.