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Shareholders' Equity | 12 Months Ended
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Dec. 31, 2023
Equity [Abstract] |
Shareholders' Equity | Stockholders’ Equity Stock Repurchase The Board has authorized one active stock repurchase programs for the Company. The Company may purchase shares on the open market from time to time. The Board must authorize the timing and amount of these purchases and all repurchases are in accordance with the rules and regulations of the SEC allowing the Company to repurchase shares from the open market. Our open market repurchase programs are as follows:
Agreement Execution Date |  | Authorized Repurchase $ |  | Expiration Date
March 13, 2020 |  | $20 million |  | November 9, 2022
November 3, 2022 |  | $50 million |  | **1, 2
1 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board.
2 As of December 31, 2023, there is approximately $25.0 million remaining under the current stock repurchase program. The remaining amount available is subject to a Board authorized 10b5-1 plan requiring certain market conditions and requirements.
The Company repurchases shares of AAON stock from employees for payment of statutory tax withholdings on stock transactions. All other repurchases from directors or employees are contingent upon Board approval. All repurchases are done at current market prices. Lastly, the Company also had a stock repurchase arrangement by which employee-participants in our 401(k) Plan were entitled to have shares of AAON stock in their accounts sold to the Company. The 401(k) Plan was amended in June 2022 to discontinue this program. No additional shares have been purchased by the Company under this arrangement since June 2022. Our repurchase activity is as follows:
|  | 2023 |  | 2022 |  | 2021
|  | (in thousands, except share and per share data)
Program |  | Shares 1 | Total $ | $ per share 1 |  | Shares 1 | Total $ | $ per share 1 |  | Shares 1 | Total $ | $ per share 1
Open market |  | 402,873 |  | $ | 25,009 |  | $ | 62.08 |  |  | 183,168 |  | $ | 6,823 |  | $ | 37.25 |  |  | — |  | $ | — |  | $ | — |
401(k) |  | — |  | — |  | — |  |  | 155,904 |  | 5,913 |  | 37.93 |  |  | 446,658 |  | 20,876 |  | 46.74 |
Employees |  | 21,904 |  | 1,302 |  | 59.44 |  |  | 25,842 |  | 1,019 |  | 39.43 |  |  | 33,789 |  | 1,590 |  | 47.06 |
Total |  | 424,777 |  | $ | 26,311 |  | $ | 61.94 |  |  | 364,914 |  | $ | 13,755 |  | $ | 37.69 |  |  | 480,447 |  | $ | 22,466 |  | $ | 46.76 |
1 Reflects three-for-two stock split effective August 16, 2023.
Our repurchase activity since Company inception, including our current authorized stock repurchase programs are as follows:
|  | Inception to Date
|  | (in thousands, except share and per share data)
Program |  | Shares 1 | Total $ | $ per share 1
Open market |  | 6,893,924 |  | $ | 106,625 |  | $ | 15.47 |
401(k) |  | 12,462,552 |  | 171,789 |  | 13.78 |
Directors & employees |  | 3,089,337 |  | 24,662 |  | 7.98 |
Total |  | 22,445,813 |  | $ | 303,076 |  | $ | 13.50 |
1 Reflects three-for-two stock split effective August 16, 2023.
Dividends At the discretion of the Board of Directors, we pay cash dividends. Board approval is required to determine the date of declaration and amount for each cash dividend payment. Our cash dividends for the three years ended December 31, 2023 are as follows:
|  |  | Dividend | Annualized Dividend
Declaration Date 1 | Record Date | Payment Date | per Share 2 | per Share 2
May 17, 2021 | June 3, 2021 | July 1, 2021 | $0.13 | $0.26
November 9, 2021 | November 26, 2021 | December 17, 2021 | $0.13 | $0.26
May 18, 2022 | June 3, 2022 | July 1, 2022 | $0.13 | $0.26
November 8, 2022 | November 28, 2022 | December 16, 2022 | $0.16 | $0.32
March 1, 2023 | March 13, 2023 | March 31, 2023 | $0.08 | $0.32
May 18, 2023 | June 9, 2023 | June 30, 2023 | $0.08 | $0.32
August 18, 2023 | September 8, 2023 | September 29, 2023 | $0.08 | $0.32
November 10, 2023 | November 29, 2023 | December 18, 2023 | $0.08 | $0.32
1 Effective with the cash dividend declared on March 1, 2023 (paid on March 31, 2023), the Company moved from semi-annual cash dividends to quarterly cash dividends.
2 Reflects three-for-two stock split effective August 16, 2023.
We paid cash dividends of $26.4 million, $22.9 million, and $19.9 million in 2023, 2022, and 2021, respectively. Stock Split On July 7, 2023, the Board of Directors declared a three-for-two stock split of the Company's common stock to be paid in the form of a stock dividend. Stockholders of record at the close of business on July 28, 2023 received one additional share for every two shares they held as of that date on August 16, 2023 (ex-dividend date August 17, 2023). Cash was paid in lieu of fractional shares (approximately $0.5 million). All share and per share information has been updated to reflect the effects of this stock split. The retroactive effect of the stock split resulted in approximately $0.1 million reclass between common stock and retained earnings within stockholders' equity on the consolidated balance sheet. Contingent Shares Issued in BASX Acquisition As discussed above, the Company declared a three-for-two stock split effective August 16, 2023. All share and per share information has been updated to reflect the effect of the stock split. On December 10, 2021, we closed on the acquisition of BASX (Note 4). Under the MIPA Agreement, we committed to $78.0 million in the aggregate of contingent consideration to the former owners of BASX, which is payable in approximately 1.56 million shares of AAON stock, par value $0.004 per share. The shares do not accrue dividends. Under the MIPA Agreement, the potential future issuance of the shares is contingent upon BASX meeting certain post-closing earn-out milestones during each of the years ended 2021, 2022, and 2023. We estimated the fair value of contingent consideration related to these shares to be approximately $60.0 million, which is included in additional paid-in capital on the consolidated balance sheets. As of December 31, 2023, 0.58 million and 0.73 million shares related to the earn-out milestones for the years ended 2022 and 2021, respectively, have been issued to the former owners of BASX as private placements exempt from registration with the SEC under Rule 506(b), which are included in common stock on the consolidated statements of stockholders' equity. No additional shares have been issued subsequent to December 31, 2023.

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