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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | 13. Stock-Based Compensation The Company recorded stock-based compensation in General and administrative expenses in the accompanying Consolidated Statements of Operations, the components of which are further described below:
|  | Year ended December 31, |
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Restricted stock (1) |  | $ | 12,651 |  |  |  | 14,248 |  |  |  | 16,254 |
Directors' fees paid in common stock and other employee stock grants |  |  | 530 |  |  |  | 452 |  |  |  | 410 |
Capitalized stock-based compensation |  |  | (666 | ) |  |  | (1,119 | ) |  |  | (2,325 | )
Stock-based compensation, net of capitalization |  | $ | 12,515 |  |  |  | 13,581 |  |  |  | 14,339 |
(1) Includes amortization of the grant date fair value of restricted stock awards over the respective vesting periods. The Company established its Omnibus Incentive Plan (the “Plan”) under which the Board of Directors may grant stock options and other stock-based awards to officers, directors, and other key employees. The Plan allows the Company to issue up to 5.0 million shares in the form of the Parent Company's common stock or stock options. As of December 31, 2021, there were 4.3 million share s available for grant under the Plan either through stock options or restricted stock awards. Restricted Stock Awards The Company grants restricted stock under the Plan to its employees as a form of long-term compensation and retention. The terms of each restricted stock grant vary depending upon the participant's responsibilities and position within the Company. The Company's stock grants can be categorized as either time-based awards, performance-based awards, or market-based awards. All awards are valued at fair value, earn dividends throughout the vesting period, and have no voting rights. Fair value is measured using the grant date market price for all time-based or performance-based awards. Market based awards are valued using a Monte Carlo simulation to estimate the fair value based on the probability of satisfying the market conditions and the projected stock price at the time of payout, discounted to the valuation date over a three year performance period. Assumptions include historic volatility over the previous three year period, risk-free interest rates, and Regency's historic daily return as compared to the market index. Since the award payout includes dividend equivalents and the total shareholder return includes the value of dividends, no dividend yield assumption is required for the valuation. Compensation expense is measured at the grant date and recognized on a straight-line basis over the requisite vesting period for the entire award. The following table summarizes non-vested restricted stock activity:
|  | Year ended December 31, 2021 |
|  | Number of Shares |  |  | Intrinsic Value (in thousands) |  |  | Weighted Average Grant Price |
Non-vested as of December 31, 2020 |  |  | 618,935 |  |  |  |  |  |  |
Time-based awards granted (1) (4) |  |  | 196,453 |  |  |  |  |  | $ | 49.33 |
Performance-based awards granted (2) (4) |  |  | 25,627 |  |  |  |  |  | $ | 47.68 |
Market-based awards granted (3) (4) |  |  | 146,136 |  |  |  |  |  | $ | 42.63 |
Change in market-based awards earned for performance (3) |  |  | (15,513 | ) |  |  |  |  | $ | 47.18 |
Vested (5) |  |  | (223,158 | ) |  |  |  |  | $ | 49.02 |
Forfeited |  |  | (56,618 | ) |  |  |  |  | $ | 61.16 |
Non-vested as of December 31, 2021 (6) |  |  | 691,862 |  |  | $ | 51,744 |  |  |  |
(1) Time-based awards vest beginning on the first anniversary following the grant date over a one or four year service period. These grants are subject only to continued employment and are not dependent on future performance measures. Accordingly, if such vesting criteria are not met, compensation cost previously recognized would be reversed. (2) Performance-based awards are earned subject to future performance measurements. Once the performance criteria are achieved and the actual number of shares earned is determined, shares vest over a required service period. The Company considers the likelihood of meeting the performance criteria based upon management's estimates from which it determines the amounts recognized as expense on a periodic basis. (3) Market-based awards are earned dependent upon the Company's total shareholder return in relation to the shareholder return of a NAREIT index over a three-year period. Once the performance criteria are met and the actual number of shares earned is determined, the shares are immediately vested and distributed. The probability of meeting the criteria is considered when calculating the estimated fair value on the date of grant using a Monte Carlo simulation. These awards are accounted for as awards with market criteria, with compensation cost recognized over the service period, regardless of whether the performance criteria are achieved and the awards are ultimately earned. The significant assumptions underlying determination of fair values for market-based awards granted were as follows:
|  | Year ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Volatility |  |  | 42.60 | % |  |  | 18.50 | % |  |  | 19.30 | %
Risk free interest rate |  |  | 0.18 | % |  |  | 1.30 | % |  |  | 2.43 | %
(4) The weighted-average grant price for restricted stock granted during the years is summarized below:
|  | Year ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Weighted-average grant price for restricted stock |  | $ | 46.55 |  |  | $ | 64.14 |  |  | $ | 65.11 |
(5) The total intrinsic value of restricted stock vested during the years is summarized below (in thousands):
|  | Year ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Intrinsic value of restricted stock vested |  | $ | 10,939 |  |  | $ | 14,423 |  |  | $ | 17,684 |
(6) As of December 31, 2021, there was $13.9 million of unrecognized compensation cost related to non-vested restricted stock granted under the Parent Company's Plan. When recognized, this compensation results in additional paid in capital in the accompanying Consolidated Statements of Equity of the Parent Company and in general partner preferred and common units in the accompanying Consolidated Statements of Capital of the Operating Partnership. This unrecognized compensation cost is expected to be recognized over the next three years. The Company issues new restricted stock from its authorized shares available at the date of grant.

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