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Stock-based Compensation
 6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation
Stock-based Compensation
Prior to the Separation, stock-based compensation expense was allocated to Ingevity based on the portion of WestRock's incentive stock program in which Ingevity employees participated. Stock-based compensation expense recorded by Ingevity associated with WestRock's incentive stock program was $0.1 million and $0.5 million for the three and six months ended June 30, 2016, respectively, and $0.7 million and $1.4 million for the three and six months ended June 30, 2015, respectively.
Adopted at Separation, the Ingevity Corporation 2016 Omnibus Incentive Plan grants certain employees, independent contractors, or non-employee directors of the Company different forms of benefits, including stock options, restricted stock units ("RSU"s) and performance-based restricted stock units ("PSU"s). Our stock-based compensation expense recognized post Separation associated with Ingevity's incentive plan for the three and six months ended June 30, 2016 was $0.8 million.

Stock Options
All stock options vest in accordance with vesting conditions set by the compensation committee of the Company’s board of directors. Stock options granted to date have vesting periods of three years from the date of grant. The expense related to stock options granted in the period from the Separation through June 30, 2016 was based on the assumptions shown in the table below:
Assumptions used to calculate expense for stock options
 
For the period from Separation through June 30, 2016
Risk-free interest rate
 
1.6
%
Average life of options (years)
 
6.5

Volatility
 
35.0
%
Dividend yield
 
—

Fair value per stock option
 
$
10.43


The following table summarizes Ingevity's stock option activity for the period from the Separation through June 30, 2016 as there was no Ingevity stock option activity prior to Separation.
Assumptions used to calculate expense for stock options
 
Number of shares (in thousands)
 
Weighted average exercise price (per share)
 
Weighted average remaining contractual term (years)
 
Aggregate intrinsic value (in thousands)
Outstanding, May 15, 2016
 
—

 
N/A
 
 
 
 
Granted
 
208

 
$
27.53

 
 
 
 
Exercised
 
—

 
N/A
 
 
 
 
Forfeited
 
—

 
N/A
 
 
 
 
Canceled
 
—

 
N/A
 
 
 
 
Outstanding, June 30, 2016
 
208

 
$
27.53

 
9.9

 
$
1,355

Exercisable, June 30, 2016
 
—

 
N/A
 
N/A
 
N/A


The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of June 30, 2016 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 at quarter end. The amount changes based on the fair market value of the company's stock. No options were exercised in the three and six months ended June 30, 2016.
As of June 30, 2016, $2.1 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.7 years.
Restricted Stock Units and Performance-based Restricted Stock Units
All RSUs and PSUs vest in accordance with vesting conditions set by the compensation committee of the Company’s board of directors. RSU's granted to date have vesting periods ranging from one year to three years from the date of grant. PSU's granted to date have vesting periods of three years from the date of grant, including grants that have a cumulative three year performance period, subject to satisfaction of the applicable performance goals established for the respective grant. The Company periodically assesses the probability of achievement of the performance criteria and adjusts the amount of compensation expense accordingly. Compensation expense is recognized over the vesting period and adjusted for the probability of achievement of the performance criteria.
Nonvested awards of RSUs, both with and without performance feature, as of June 30, 2016 are shown below. The weighted-average grant-date fair value of RSUs granted during 2016 was $27.77.
 
 
Number of shares (in thousands)
 
Weighted average grant date fair value (per share)
Nonvested, May 15, 2016
 
—

 
N/A
Granted
 
314

 
$
27.77

Vested
 
—

 
N/A
Forfeited
 
—

 
N/A
Nonvested, June 30, 2016
 
314

 
$
27.77


As of June 30, 2016, there was $6.3 million of unrecognized stock-based compensation expense related to nonvested awards. That cost is expected to be recognized over a weighted-average period of 2.0 years.