DFIN 2017 Annual Report

Notes to the Consolidated and Combined Financial Statements (in millions, except per share data, unless otherwise indicated) Stock option awards outstanding as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows: Shares Under Option (thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (millions) Outstanding at December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . 299 $21.48 3.5 $1.4 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 22.37 9.2 Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16) 12.67 Cancelled/forfeited/expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) 22.30 Outstanding at December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . 459 22.13 5.1 0.8 Vested and expected to vest at December 31, 2017 . . . . . . . . . . . 448 22.13 5.0 0.8 Exercisable at December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . 104 $11.95 1.2 0.8 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on December 31, 2017 and December 31, 2016, respectively, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options on December 31, 2017 and December 31, 2016. This amount will change in future periods based on the fair market value of the Company’s stock and the number of options outstanding. Total intrinsic value of options exercised for the year ended December 31, 2017 was $0.1 million and was de minimis for the year ended December 31, 2016. There were no excess tax benefits on stock option exercises for the years ended December 31, 2017 and 2016. Compensation expense related to stock options was $0.3 million for the year ended December 31, 2017. As of December 31, 2017, $1.1 million of total unrecognized compensation expense related to stock options is expected to be recognized over a weighted average period of 3.2 years. Compensation expense related to stock options for the years ended December 31, 2016 and 2015 was de minimis. Restricted Stock Units Nonvested restricted stock unit awards as of December 31, 2016 and December 31, 2017, and changes during the twelve months ended December 31, 2017, were as follows: Shares (thousands) Weighted Average Grant Date Fair Value Nonvested at December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . 436 $25.28 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 22.41 Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (108) Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) 22.35 Nonvested at December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . 598 $23.48 Compensation expense related to RSUs was $4.1 million, $1.9 million and $0.8 million for the years ended December 31, 2017, 2016 and 2015 respectively. As of December 31, 2017, there was $5.4 million of unrecognized share-based compensation expense related to 0.6 million restricted stock unit awards, with a weighted-average grant date fair value of $23.48, that are expected to vest over a weighted-average period of 1.9 years. The fair value of these awards was determined based on the Company’s stock price on the grant date, as the Company currently does not anticipate paying any cash dividends in the foreseeable future. F-30