Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Details of Weighted-Average Grant-Date Fair Values and Assumptions Used for Estimating Fair Values

The following table details the weighted-average grant-date fair values and the assumptions used for estimating the fair values of stock options granted in the respective years:


	2021			2020			2019
Weighted-average grant-date fair value	$	5.94		$	5.28		$	6.47
Expected life, in years	6.0			5.2			5.6
Risk-free interest rate	0.8		%	1.4		%	2.5		%
Expected volatility	40.4		%	35.1		%	33.9		%
Expected dividend yield	—		%	—		%	—		%

Share-based Payment Arrangement, Activity

A summary of stock option activity follows:


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value(1)
Outstanding at December 31, 2020	1,933,899	$	13.20
Granted	285,400	15.10
Exercised	(1,035,434)	10.48
Forfeited or expired	(38,433)	16.08
Outstanding at December 31, 2021	1,145,432	$	16.03	7.4	$	6,666
Exercisable at December 31, 2021	972,933	$	16.16	7.2	$	5,543
Vested or expected to vest at December 31, 2021	1,145,432	$	16.03	7.4	$	6,666

(1)Aggregate intrinsic value amounts shown in thousands.

Information related to stock options exercised follows:


(Dollars in thousands)	2021		2020		2019
Proceeds from the exercise of stock options	$	11,575	$	756	$	1,052
Intrinsic value of stock options exercised	11,314		867		750
Income tax benefit related to stock options exercised	2,602		182		158

Summary of Stock-Based Compensation Expense

A summary of amounts recorded and to be recorded for stock-based compensation related to stock options follows:


(Dollars in thousands)	2021		2020		2019
Compensation expense recorded in Selling, general and administrative expenses	$	1,851	$	2,304	$	1,801
Deferred income tax benefits related to compensation expense	426		484		378
Total fair value of stock options vested	1,812		465		1,387
Unrecognized compensation cost	1,908		2,039		1,469
Expected weighted-average recognition period for unrecognized compensation, in years	1.1		1.8		2.2

Performance Share Units

Share-based Payment Arrangement, Activity

A summary of performance share unit activity follows:


	Number of Units	Weighted- Average Remaining Contractual Term
Outstanding at December 31, 2020	481,998
Granted	185,600
Earned	(71,856)
Forfeited or expired	(53,144)
Outstanding at December 31, 2021	542,598	1.0
Vested or expected to vest at December 31, 2021	542,598	1.0

Summary of Stock-Based Compensation Expense

A summary of amounts recorded and to be recorded for stock-based compensation related to performance share units follows:


(Dollars in thousands)	2021		2020		2019
Compensation expense recorded in Selling, general and administrative expenses	$	626	$	3,270	$	3,607
Deferred income tax benefits related to compensation expense	144		773		757
Unrecognized compensation cost	3,747		3,417		2,730
Expected weighted-average recognition period for unrecognized compensation, in years	1.5		1.5		1.6

FERRO CORP 10-K