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Share-Based Compensation | 12 Months Ended
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Nov. 30, 2023
Share-Based Payment Arrangement [Abstract] |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION: Overview of Stock Incentive Plans The Company’s stock incentive plans include plans adopted in 2020 and 2013 (the “TD SYNNEX Plan(s)”). The TD SYNNEX Plans, as amended, provide for the direct award or sale of shares of common stock, restricted stock awards ("RSAs"), restricted stock units ("RSUs"), the grant of options to purchase shares of common stock and the award of stock appreciation rights to employees and non-employee directors and consultants. No further grants may be made under the 2013 TD SYNNEX Plan and all outstanding awards under the 2013 TD SYNNEX Plan continue to be governed by their existing terms. As of November 30, 2023, there were 2.9 million shares of common stock authorized under the 2020 TD SYNNEX Plan available for future grants. Under the TD SYNNEX Plans, qualified employees are eligible for the grant of incentive stock options to purchase shares of common stock. Qualified employees and outside directors and consultants are eligible for the grant of non-qualified stock options, stock appreciation rights, RSAs and RSUs. The outstanding RSAs and RSUs generally vest ratably on an annual basis over a period of three to five years, with certain awards subject to other vesting periods as defined per the grant agreement. RSAs granted to qualified non-employee directors vest one fourth on a quarterly basis over a one-year period. The holders of RSAs are entitled to the same voting, dividend and other rights as the Company’s common stockholders. Certain RSUs vest subject to the achievement of individual, divisional or company-wide performance goals. The majority of these performance-based RSUs vest at the end of three-year requisite service periods, subject to the achievement of company-wide financial performance goals approved by the Compensation Committee. The exercise price for stock options will not be less than 100% of the fair market value of the stock on the date of grant and the stock options have a contractual term of ten years. The majority of outstanding stock options vest as to one fifth of the stock underlying the stock options on the first anniversary date of the grant and the remaining vest monthly over a four-year period starting one month after the first anniversary of the date of grant. Unless terminated sooner, the 2020 TD SYNNEX Plan will terminate on March 17, 2030. The Company recognizes share-based compensation expense for all share-based awards made to employees and outside directors, including employee stock options, RSAs, RSUs, performance-based RSUs and employee stock purchase rights, based on estimated fair values. A summary of share-based compensation expense in the Consolidated Statements of Operations for TD SYNNEX stock incentive plans is presented below:
| Fiscal Years Ended November 30,
| 2023 |  | 2022 |  | 2021
| (currency in thousands)
Selling, general and administrative expenses | $ | 49,273 |  |  | $ | 38,994 |  |  | $ | 33,078 |
Acquisition, integration and restructuring costs | 6,526 |  |  | 6,514 |  |  | 8,289 |
Total share-based compensation expense | $ | 55,799 |  |  | $ | 45,508 |  |  | $ | 41,367 |
The Company settles all share-based award exercises with newly issued common shares or the reissuance of treasury shares. Valuation Assumptions The Company estimates the fair value of share-based payment awards on the grant date and recognizes as expense over the requisite service period in the Company’s Consolidated Financial Statements. The Company uses the Black-Scholes valuation model to estimate the fair value of stock options. The Black-Scholes option-pricing model was developed for use in estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility assumption is determined using historical volatility of the Company’s common stock. The fair value of stock awards is determined based on the stock price at the date of grant. For grants that do not accrue dividends or dividend equivalents, the fair value is the stock price reduced by the present value of estimated dividends over the vesting period. For performance-based RSUs, the grant-date fair value assumes that the targeted performance goals will be achieved. Over the performance period, the number of awards expected to vest will be adjusted higher or lower based on the probability of achievement of performance goals. The Company accounts for expense reductions that result from the forfeiture of unvested awards in the period that the forfeitures occur. Employee Stock Options A summary of the changes in the Company’s stock options is set forth below:
| Options Outstanding
(shares in thousands, except per share amounts) | Number of shares |  | Weighted- average exercise price per share
Balances, November 30, 2022 | 677 |  | $ | 72.29 |
Options exercised | (83) |  | 53.46 |
Balances, November 30, 2023 | 594 |  | $ | 74.93 |
The following assumptions were used in the Black-Scholes valuation model in fiscal years 2022 and 2021:
|  |  | Fiscal Years Ended November 30,
|  |  | 2022 |  | 2021
Expected life (years) |  |  | 5.5 |  | 5.5 - 6.1
Risk free interest rate |  |  | 1.73% - 3.92% |  | 0.72% - 1.16%
Expected volatility |  |  | 39.10% - 40.18% |  | 38.01% - 38.85%
Dividend yield |  |  | 1.13% - 1.37% |  | 0.75% - 0.88%
There were no new stock options granted during fiscal year 2023. The weighted-average grant-date fair values of the stock options granted during fiscal years 2022 and 2021 were $33.57 and $34.37, respectively. As of November 30, 2023, 594 thousand stock options were outstanding with a weighted-average remaining contractual term of 6.23 years, a weighted-average exercise price of $74.93 per option and an aggregate pre-tax intrinsic value of $15.4 million. As of November 30, 2023, 409 thousand options were vested and exercisable with a weighted-average remaining contractual term of 5.68 years, a weighted-average exercise price of $66.62 per share and an aggregate pre-tax intrinsic value of $13.7 million. The cash received from the exercise of stock options and the intrinsic values of stock options exercised during fiscal years 2023, 2022 and 2021 were as follows:
| Fiscal Years Ended November 30,
| 2023 |  | 2022 |  | 2021
| (currency in thousands)
Intrinsic value of options exercised | $ | 3,570 |  |  | $ | 4,682 |  |  | $ | 16,163 |
Cash received from exercise of options | $ | 4,448 |  |  | $ | 3,216 |  |  | $ | 10,541 |
As of November 30, 2023, the unamortized share-based compensation expense related to unvested stock options under the TD SYNNEX Plans was $2.1 million which will be recognized over an estimated weighted-average amortization period of 2.13 years. Restricted Stock Awards and Restricted Stock Units A summary of the changes in the Company’s non-vested RSAs and RSUs during fiscal year 2023 is presented below:
(shares in thousands, except per share amounts) | Number of shares |  | Weighted-average, grant-date fair value per share
Non-vested as of November 30, 2022 | 1,307 |  | $ | 95.69 |
Granted | 635 |  | 96.75 |
Vested | (544) |  | 100.07 |
Attainment adjustments(1) | (12) |  | 91.34 |
Cancelled | (79) |  | 92.73 |
Non-vested as of November 30, 2023 | 1,307 |  | $ | 94.92 |
__________________ (1) During the year ended November 30, 2023, t he attainment on PRSUs vested was adjusted to reflect actual performance. The weighted-average grant-date fair value of the 691 thousand RSAs and RSUs granted during fiscal year 2022 was $93.95. The weighted-average grant-date fair value of the 684 thousand RSAs and RSUs granted during fiscal year 2021 was $99.28. As of November 30, 2023, there was $74.8 million of total unamortized share-based compensation expense related to non-vested RSAs and RSUs granted under the TD SYNNEX Plans. That cost is expected to be recognized over an estimated weighted-average amortization period of 2.07 years. In connection with the Separation, as required by the TD SYNNEX stock incentive plans, the Company made certain adjustments to outstanding employee equity awards with the intention of preserving the intrinsic value of the awards prior to the Separation. In accordance with the employee matters agreement, each exercisable and non-exercisable stock option and unvested RSA was modified into similar awards of both SYNNEX and Concentrix and the exercise price of outstanding stock options was adjusted to preserve the intrinsic value of the awards. Certain RSUs and performance-contingent awards were modified to provide the holders RSUs and performance contingent awards in the company that employs such employee following the Separation. When settled wholly in the employer’s shares, the ratio was based on the closing stock price of SYNNEX at November 30, 2020 compared to the opening stock price of the respective entity on December 1, 2020. The options strike prices were adjusted in the same manner. The modification of these awards did not result in material incremental compensation cost. Tech Data Equity Awards Prior to the Merger, certain of Tech Data’s employees were granted performance-based equity awards in Tiger Parent Holdings L.P., a partnership entity that was the parent company of Tiger Parent (AP) Corporation and Tech Data, that were unvested at the time of the closing of the Merger. Upon closing of the Merger, the unvested performance-based equity awards were converted i nto restricted shares of TD SYNNEX that vest over two years. The following table summarizes the activity related to these restricted shares during the year ended November 30, 2023:
(share amounts in thousands) |  | Restricted shares
Nonvested as of November 30, 2022 |  | 350
Vested |  | (316)
Canceled |  | (34)
Nonvested as of November 30, 2023 |  | 0
The restricted shares had a fair value of $127.60 per share upon closing of the Merger which was recorded as share-based compensation expense on a straight-line basis over the vesting period in “Acquisition, integration, and restructuring costs” in the Consolidated Statement of Operations. The Company recorded $29.2 million, $45.7 million and $11.8 million of share-based compensation expense related to these restricted shares in "Acquisition, integration, and restructuring costs" during fiscal years 2023, 2022 and 2021, respectively. All remaining restricted shares vested on September 1, 2023. Employee Stock Purchase Plan On January 6, 2014, the Board of Directors approved the adoption of the 2014 Employee Stock Purchase Plan (“2014 ESPP”) to succeed the Company's 2003 Employee Stock Purchase Plan. The 2014 ESPP, as amended, commenced on January 1, 2015 with 750 thousand authorized shares, which was due to antidilution provisions in the 2014 ESPP increased by 537 thousand authorized shares following the Separation. Under the 2014 ESPP, there are four offering periods of three months each in a calendar year. Eligible employees in the United States can choose to have a fixed percentage deducted from their bi-weekly compensation, subject to a maximum purchase limit of $10 thousand in a calendar year, to purchase the Company’s common stock at a discount of 5%. Highly compensated employees are not eligible to participate in the plan. On January 10, 2024, the Board of Directors approved the adoption of the 2024 Employee Stock Purchase Plan (“2024 ESPP”) to succeed the Company's 2014 Employee Stock Purchase Plan. The 2024 ESPP will commence with 750 thousand authorized shares. Under the 2024 ESPP, there will be two offering periods per calendar year. Eligible employees in the United States and Canada can choose to have a fixed percentage deducted from their bi-weekly compensation to purchase the Company's common stock at a discount of 15%, subject to a maximum purchase limit of $25 thousand in fair market value of common stock in a calendar year. Share-based compensation expense related to the 2014 ESPP was immaterial during fiscal years 2023, 2022 and 2021. Tax Benefit of Share-Based Compensation Expense During fiscal years 2023, 2022 and 2021, the Company recognized income tax benefits related to the plans discussed above of $12.6 million, $8.2 million, and $12.1 million, respectively, within the provision for income taxes.

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