XML 34 R22.htm IDEA: XBRL DOCUMENT v3.21.2
Retirement Plans
 9 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
Under the Company’s unfunded DCP, certain officers and key employees may defer all or any part of their incentive compensation, and the Company may make discretionary awards on behalf of such participants. Elective participant deferrals and discretionary Company awards are received in the form of phantom shares of the Company’s Class B Common Stock, which are valued for tax and accounting purposes in the same manner as actual shares of Class B Common Stock, and are recorded as stock‑based compensation expense in the consolidated statements of operations (see Note 15).
In August 2021, the Company’s Board of Directors approved an amendment to the DCP, which offered to certain active executives in the DCP a one‑time, short‑term election to reallocate a limited portion of their DCP holdings from phantom shares of the Company’s Class B Common Stock into other DCP phantom investment funds. The offer to reallocate was subject to a proration mechanism which adjusted the aggregate elections to a maximum of 1,500,000 phantom shares of the Company’s Class B Common Stock. This resulted in a reduction of 1,500,000 shares in both the basic and diluted count of Company shares.
While DCP participants’ investments in phantom shares remain equity classified, as they will be settled in shares of Class B Common Stock upon eventual distribution, the amendment and elections resulted in a change to liability classification for the reallocated phantom investments, as they will be settled in cash upon eventual distribution. As a result, during the three and nine months ended September 30, 2021, the Company reclassified cumulative compensation cost of $4,739 from Additional paid-in capital to Accruals and other current liabilities or Deferred compensation plan liabilities in the consolidated balance sheet and recognized a compensation charge of $90,721 to Deferred compensation plan expenses in the consolidated statements of operations to record the reallocated deferred compensation plan liabilities at their fair value of $95,460. Subsequent to the one‑time reallocation, these diversified deferred compensation plan liabilities are marked to market at the end of each reporting period, with changes in the liabilities recorded as an expense (income) to Deferred compensation plan in the consolidated statements of operations.
Amounts in the DCP attributable to certain non‑colleague participants are settled in cash and are classified as liabilities in either Accruals and other current liabilities or Deferred compensation plan liabilities in the consolidated balance sheets. The deferred compensation plan liabilities are marked to market at the end of each reporting period, with changes in the liabilities recorded as an expense (income) to Deferred compensation plan in the consolidated statements of operations.
Deferred compensation plan expense (income) was $88,965 and $50 for the three months ended September 30, 2021 and 2020, respectively, and $89,327 and $(115) for the nine months ended September 30, 2021 and 2020, respectively.
For the three months ended September 30, 2021 and 2020, DCP elective participant deferrals were $527 and $804, respectively, and $2,020 and $2,602 for the nine months ended September 30, 2021 and 2020, respectively. No discretionary contributions were made to the DCP during the three and nine months ended September 30, 2021 and 2020. As of September 30, 2021 and December 31, 2020, phantom shares of the Company’s Class B Common Stock issuable by the DCP were 25,503,049 and 30,590,955, respectively.
The total liabilities related to the DCP is included in the consolidated balance sheets as follows:
September 30, 2021December 31, 2020
Accruals and other current liabilities$7,306 $169 
Deferred compensation plan liabilities89,174 2,422 
Total DCP liabilities$96,480 $2,591