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SHARE-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2018
Share-based Compensation [Abstract]  
Schedule of Company Stock Awards
A summary of the status of the Company’s nonvested restricted stock awards as of December 31, 2018, and changes during the year ended December 31, 2018, is presented below:
 
 
Shares
 
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1, 2018
642,359

 
$
13.23

Granted
693,064

 
$
4.55

Vested
(443,159
)
 
$
10.15

Forfeited
(16,767
)
 
$
9.10

Nonvested at December 31, 2018
875,497

 
$
7.99
Schedule of PSU Activity
The Company granted the following PSUs in the first quarter of the respective years. A summary of PSU activity as of December 31, 2018, and changes during the year ended December 31, 2018, is presented below:
 
PSUs
 
Weighted-Average
Grant Date
Fair Value
2016 PSUs granted
282,995

 
$
4.98

2017 PSUs granted
277,376

 
$
6.86

Outstanding at January 1 , 2018
560,371

 
$
5.91

2018 PSUs granted (1)
741,977

 
$
2.63

2016 PSUs canceled (2)
(252,538
)
 
$
4.41

Forfeited
(138,899
)
 
$
4.22

Outstanding at December 31, 2018 (3)
910,911

 
$
4.67

 
 
 
 
(1)
Includes 381,749 shares classified as a liability due to the potential cash component described above.
(2)
Based on the Company's TSR relative to the NAREIT Retail Index for the three-year performance period ended December 31, 2018, none of the 2016 PSU were earned as of December 31, 2018.
(3)
None of the PSUs outstanding at December 31, 2018 were vested.
Schedule of Assumptions used in the Monte Carlo Simulation Pricing Models
The following table summarizes the assumptions used in the Monte Carlo simulation pricing model related to the 2018 PSUs and the 2017 PSUs:
 
2018 PSUs
 
2017 PSUs
Grant date
February 12, 2018
 
February 7, 2017
Fair value per share on valuation date (1)
$
4.76

 
$
6.86

Risk-free interest rate (2)
2.36
%
 
1.53
%
Expected share price volatility (3)
42.02
%
 
32.85
%
(1)
The value of the PSU awards is estimated on the date of grant using a Monte Carlo Simulation model. The valuation consists of computing the fair value using CBL's simulated stock price as well as TSR over a three-year performance period. The award is modeled as a contingent claim in that the expected return on the underlying shares is risk-free and the rate of discounting the payoff of the award is also risk-free. The weighted-average fair value per share related to the 2018 PSUs classified as equity consists of 240,164 shares at a fair value of $3.13 per share (which related to relative TSR) and 120,064 shares at a fair value of $1.63 per share (which relate to absolute TSR). The weighted-average fair value per share related to the 2017 PSUs consists of 115,082 shares at a fair value of $5.62 per share and 162,294 shares at a fair value of $7.74 per share.
(2)
The risk-free interest rate was based on the yield curve on zero-coupon U.S. Treasury securities in effect as of the valuation date, which is the respective grant date listed above.
(3)
The computation of expected volatility was based on a blend of the historical volatility of CBL's shares of common stock based on annualized daily total continuous returns over a three-year period and implied volatility data based on the trailing month average of daily implied volatilities implied by stock call option contracts that were both closest to the terms shown and closest to the money.