Stock Incentive Plan

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]


16.			STOCK INCENTIVE PLAN

General—The Company has a stock incentive plan (the “Stock Incentive Plan”) and an employee stock purchase plan (the “ESPP”) that are administered by the Compensation and Talent Development Committee of the Board of Directors. Under the Stock Incentive Plan, the Company can issue shares to employees and directors in the form of restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance share units (“PSUs”). Compensation expense recognized related to the Company’s Stock Incentive Plan was $10,181, $11,687 and $11,572 for 2022, 2021 and 2020, respectively. Under the Stock Incentive Plan, we are authorized to issue 3,400 shares, and assuming PSU vestings occur at maximum payout, 397 authorized shares remained available under our Stock Incentive Plan for future grants at December 31, 2022.

Under the ESPP, employees may make quarterly purchases of shares at a discount through regular payroll deductions for up to 15% of their compensation, subject to a $25 fair market value maximum purchase per year. The shares are purchased at 85% of the closing price per share on the last trading day of the calendar quarter. Included within total stock-based compensation expense is $120, $84 and $71 of expense related to the ESPP, for 2022, 2021 and 2020, respectively. ESPP expense represents the difference between the fair value on the date of purchase and the price paid. At December 31, 2022, 692 authorized shares remained available for issuance under the ESPP.

Total equity-based compensation expense recognized related to the Company’s Stock Incentive Plan and the ESPP was $10,301, $11,771 and $11,643 for 2022, 2021 and 2020, respectively, primarily recognized within general and administrative expenses. At December 31, 2022, there was approximately $10,900 of unrecognized compensation cost related to equity-based grants, which is expected to be recognized over a weighted-average period of 2.4 years. The Company recognizes forfeitures as they occur, rather than estimating expected forfeitures.

RSAs—The Company’s RSA awards may not be sold or otherwise transferred until certain restrictions have lapsed, which is generally over a one-year period for Directors. The total initial fair value for these awards is determined based upon the market price of our stock at the grant date and is expensed on a straight-line basis over the vesting period. During 2022, we recognized $633 of compensation expense. The following table presents RSA activity during 2022:


RSAs	Number of Shares	Weighted Average Fair Value Per Share
Balance at December 31, 2021	29	$	23.19
Granted	26	$	23.43
Vested	(29)	$	23.19
Forfeited	—	$	—
Balance at December 31, 2022	26	$	23.43

During 2021, 29 RSAs were granted with a weighted-average grant-date fair value per share of $23.19. During 2020, 51 RSAs were granted with a weighted-average grant-date fair value per share of $8.73. The total fair value of RSAs that vested during 2022, 2021 and 2020 was $673, $506 and $799, respectively.

RSUs—The Company’s RSU awards may not be sold or otherwise transferred until certain restrictions have lapsed, which is generally over a three-year graded vesting period. The total initial fair value for these awards is determined based upon the market price of our stock at the grant date and is expensed on a straight-line basis over the vesting period. During 2022, we recognized $3,072 of compensation expense. The following table presents RSU activity during 2022:


RSUs	Number of Shares	Weighted Average Fair Value Per Share
Balance at December 31, 2021	250	$	17.37
Granted	186	$	28.35
Vested	(151)	$	18.66
Forfeited	(2)	$	21.66
Balance at December 31, 2022	283	$	23.51

During 2021, 151 RSUs were granted with a weighted-average grant-date fair value per share of $21.29. During 2020, 169 RSUs were granted with a weighted-average grant-date fair value per share of $13.52. The total fair value of RSUs that vested during 2022, 2021 and 2020 were $2,818, $2,742 and $2,918, respectively.

PSUs—The Company’s performance-based share awards are subject to the achievement of specified financial based performance targets and are generally based upon EPS and vest over three years. The total fair value for these awards is determined based upon the market price of our stock at the grant date and is expensed and adjusted over the vesting period based on the level of payout expected to be achieved. As a result of financial performance conditions met during 2022, we recognized $6,476 of compensation expense.

During 2022, 2021 and 2020, PSU shares totaling 166, 397 and 176, respectively, were granted with a weighted-average grant-date fair value per share of $26.52, $21.88 and $14.06, respectively. During 2022, upon vesting and achievement of certain performance goals, we distributed 710 shares of common stock related to PSU awards with a weighted-average grant-date fair value per share of $14.80. The total fair value of PSUs that vested during 2022, 2021 and 2020 was $10,508, $7,842 and $1,620, respectively. Additionally, the Company has liability-based awards for which the number of units awarded is not determined until the vesting date. During 2022, the Company recognized $1,225, respectively, within additional paid in capital for the vesting of liability-based awards. The Company did not have any liability-based awards vest during 2021 and 2020. The Company recognizes forfeitures as they occur, rather than estimating expected forfeitures.

Shares Withheld for Taxes—The Company withheld 330, 311 and 123 shares for taxes on RSU and PSU stock-based compensation vestings for $9,416, $7,311 and $1,845 during 2022, 2021 and 2020, respectively. The Company withheld 1 and 11 shares for taxes on RSA stock-based compensation vestings for $27 and $140 during 2021 and 2020, respectively. The Company did not withhold any taxes for RSA stock-based compensation in 2022, as all RSA holders are directors.

Warrants—On April 3, 2017, the Company issued warrants (the “Warrants”) to the lenders under the Oaktree Facility (the “Holders”) pursuant to which such holders have the right to purchase, for a period of 5 years from the date of issuance, up to an aggregate of 1,000 shares of the Company’s common stock (the “Warrant Shares”) at an initial exercise price of $10.25 per share.

The Company valued these Warrants using the Black-Scholes model, which is a type 3 fair value measurement. The key assumptions used in the Black-Scholes Model and fair value output are summarized in the table below:


	April 3, 2017
Stock price at grant date	$	8.88
Exercise option price	$	10.25
Expected term of warrants (in years)	5
Expected volatility rate	48.29		%
Risk-free rate	1.88		%
Expected dividend yield	—		%
Total fair value	$	3,500

During 2021, certain holders exercised 530 warrants, elected the cashless exercise option, and the Company issued 315 common shares with a market value of $8,082. During 2020, certain holders exercised 470 warrants, elected the cashless exercise option, and the Company issued 110 common shares with a market value of $1,477. At December 31, 2021, no warrants remained outstanding.