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Stock Compensation Plans | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
Stock Compensation Plans | STOCK COMPENSATION PLANS The Company recorded stock compensation expense as follows for the three and nine months ended September 30, 2021 and 2020 (in millions):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Cost of goods sold |  | $ | 0.2 |  |  | $ | 0.5 |  |  | $ | 0.8 |  |  | $ | 0.9 |
Selling, general and administrative expenses |  | 5.8 |  |  | 13.7 |  |  | 20.5 |  |  | 26.3 |
Total stock compensation expense |  | $ | 6.0 |  |  | $ | 14.2 |  |  | $ | 21.3 |  |  | $ | 27.2 |
Stock Incentive Plan Under the Company’s Long-Term Incentive Plan (the “Plan”), up to 10,000,000 shares of AGCO common stock may be issued. As of September 30, 2021, of the 10,000,000 shares reserved for issuance under the Plan, 3,860,676 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below. The Plan allows the Company, under the direction of the Board of Directors’ Talent and Compensation Committee, to make grants of performance shares, stock appreciation rights, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company. Long-Term Incentive Plan and Related Performance Awards The weighted average grant-date fair value of performance awards granted under the Plan during the nine months ended September 30, 2021 and 2020 was $123.33 and $70.84, respectively. During the nine months ended September 30, 2021, the Company granted 281,310 performance awards related to varying performance periods. The awards granted assume the maximum target levels of performance are achieved. The compensation expense associated with all awards granted under the Plan is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved. The 2021 grant of performance award shares is subject to a total shareholder return modifier. Performance award transactions during the nine months ended September 30, 2021 are presented as if the Company were to achieve its maximum levels of performance and assume the 2021 performance awards subject to the total shareholder return modifier are achieved at target levels under the plan awards, and were as follows:
Shares awarded but not earned at January 1 | 582,952 |
Shares awarded | 281,310 |
Shares forfeited | (12,238) |
Shares vested | (142) |
Shares awarded but not earned at September 30 | 851,882 |
As of September 30, 2021, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $27.4 million, and the weighted average period over which it is expected to be recognized is approximately two years. The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance. Restricted Stock Unit Awards The weighted average grant-date fair value of the restricted stock units ("RSUs") granted under the Plan during the nine months ended September 30, 2021 and 2020 was $113.91 and $70.83, respectively. During the nine months ended September 30, 2021, the Company granted 92,848 RSU awards. These awards entitle the participant to receive one share of the Company’s common stock for each RSU granted and vest one-third per year over a three-year requisite service period. The 2020 grant of RSU’s to certain executives has a three-year cliff vesting requirement subject to adjustment based on a total shareholders return metric relative to the Company's defined peer group. The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest. RSU transactions during the nine months ended September 30, 2021 assume the 2020 RSUs subject to the total shareholder return modifier are achieved at target levels, and were as follows:
RSUs awarded but not vested at January 1 | 143,287 |
RSUs awarded | 92,848 |
RSUs forfeited | (2,226) |
RSUs vested | (63,397) |
RSUs awarded but not vested at September 30 | 170,512 |
As of September 30, 2021, the total compensation cost related to the unvested RSUs not yet recognized was approximately $10.7 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years. Stock-Settled Appreciation Rights The compensation expense associated with the stock-settled appreciation rights (“SSARs”) is amortized ratably over the requisite service period for the awards that are expected to vest. The Company estimates the fair value of the grants using the Black-Scholes option pricing model. SSAR transactions during the nine months ended September 30, 2021 were as follows:
SSARs outstanding at January 1 | 403,150 |
SSARs granted | — |
SSARs exercised | (192,011) |
SSARs canceled or forfeited | (904) |
SSARs outstanding at September 30 | 210,235 |
The Company did not grant any SSARs during the nine months ended September 30, 2021, and does not currently anticipate granting any SSARs in the future. As of September 30, 2021, the total compensation cost related to the unvested SSARs not yet recognized was approximately $1.1 million, and the weighted average period over which it is expected to be recognized is approximately two years. Director Restricted Stock Grants The Plan provides for annual restricted stock grants of the Company’s common stock to all non-employee directors. The 2021 grant was made on April 22, 2021 and equated to 9,117 shares of common stock, of which 7,899 shares of common stock were issued after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $1.4 million during the nine months ended September 30, 2021 associated with these grants.

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