EQUITY-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

In 2015, we established a Nonqualified Stock Option and Incentive Award Plan (“Incentive Plan”) which provides for the ability to award equity compensation awards in the form of stock options, stock appreciation rights, restricted stock, and performance awards to eligible employees, consultants, directors, and other individuals who provide services to us, each as determined by the Compensation Committee of the Board of Directors.

As of December 31, 2021, the Incentive Plan provides for the issuance of up to 29.8 million shares. We account for equity-based compensation expense in accordance with ASC 718 Compensation-Stock Compensation and is reported within operating expenses and general and administrative in the Consolidated Statements of Operations.

The following table presents our stock-based compensation expense:


	Year Ended December 31,						Remaining Expense To Be Recognized, If All Vesting Conditions Are Met as of December 31, 2021
	2021		2020		2019

Restricted shares	$	3,215	$	1,676	$	1,054	$	3,731
Common units	823		649		455		1,048
Total - continuing operations	$	4,038	$	2,325	$	1,509	$	4,779

Common units - discontinued operations	$	—	$	—	$	3,114

The following tables present information for our stock options, restricted shares of our subsidiary and common units of our subsidiary:


	Stock Options			Restricted Shares			Common Units
	Options	Weighted Average Exercise Price		Shares	Weighted Average Issuance Price		Units	Weighted Average Issuance Price
Outstanding as of December 31, 2020	2,243,692	$	16.81	578,802	$	7.64	1,394,475	$	1.14
Granted	1,684,318	26.35		662,423	8.48		1,052,632	1.14
Less: exercised / vested	165,268	18.22		367,804	8.90		1,223,265	1.13
Less: forfeited and canceled	—	—		254,180	8.08		263,013	1.14
Outstanding as of December 31, 2021	3,762,742			619,241			960,829


	Stock Options		Restricted Shares		Common Units
As of December 31, 2021:
Weighted average exercise / issuance price (per share)	$	21.02	$	8.02	$	1.14
Aggregate intrinsic value (in thousands)	$	29,951	$	5,569	$	1,326
Weighted average remaining contractual term (in years)	8.3		1.0		1.1

During the year ended December 31, 2021, the Manager transferred 25,998 of its options to certain of the Manager’s employees.

Stock Options

In connection with our equity offerings (see Note 20 for details), we granted options to the Manager related to common shares. The fair value of these options was recorded as an increase in equity with an offsetting reduction of capital proceeds received.

The following table presents information related to the options related to our shares:


		Year Ended December 31,
		2021			2020			2019
Number of options		1,684,318			129,988			1,262,362
Fair value ($ millions)		$13.8			$0.7			$1.8
Ranges
Expected volatility	The expected stock volatility is based on an assessment of the volatility of our publicly traded common shares	44.78%	-	45.60%	61.27%	-	62.12%	21.45%	-	21.89%
Risk free interest rate	The risk-free rate is determined using the implied yield currently available on U.S. government bonds with a term consistent with the expected term on the date of grant.	1.34%	-	1.70%	0.51%	-	0.76%	1.45%	-	1.67%
Expected dividend yield	The expected dividend yield is based on management’s current expected dividend rate.	3.16%	-	3.64%	6.23%	-	11.79%	6.58%	-	8.02%
Expected term	Expected term used represents the period of time the options granted are expected to be outstanding.	10 years			10 years			10 years

Restricted Shares

We issued 662,423, 545,806 and 113,121 restricted shares of our subsidiary during the years ended December 31, 2021, 2020 and 2019, respectively, that had grant date fair values of $5.6 million, $4.0 million and $1.5 million, respectively, and generally vest over three years. These awards are subject to continued employment, and the compensation expense is recognized ratably over the vesting periods. The fair value of these awards was based on the fair value of the operating subsidiary on each grant date, which was estimated using a discounted cash flow analysis that requires the application of discount factors and terminal multiples to projected cash flows. Discount factors and terminal multiples were based on market-based inputs and transactions, as available at the measurement date.

Common Units

We issued 1,052,632, 831,140 and 1,110,000 common units of our subsidiary during the years ended December 31, 2021, 2020 and 2019, respectively, that had grant date fair values of $1.2 million, $0.9 million and $3.4 million, respectively, and vest over three years. These awards are subject to continued employment and compensation expense is recognized ratably over the vesting periods. The fair value was based on the fair value of the operating subsidiary on the grant date, which is estimated using a discounted cash flow analysis that requires the application of discount factors and terminal multiples to projected cash flows. Discount factors and terminal multiples were based on market-based inputs and transactions, as available at the measurement date.